SOUTH AFRICAN TIMBER INDUSTRY AND TREATMENT STATISTICS

 

The South African Forest Industry is plantation based. It is spread over 1,34 million hectares which represents 1,1% of the land area. Pine, Eucalyptus (Gum - mainly Euc. grandis) and Wattle are the main species.

 

Typical roundwood consumption in South Africa by various industries totals some 23 million cubic meters per annum whereas the sustainable supply only amounts to 20 million cubic meters per annum. The majority of the demand is in the pulp, paper and board industry (72%) with the sawmilling industry being the next biggest consumer (21%).

 

Other industries in South Africa which are significant users of timber are:


Building
Poles
Charcoal
Container
Furniture
Match
Mining
Pallet and Bin
Plywood
Veneer
Wattle Extraction

 

The forest industry is not only a significant contributor to the national economy. It is also a major catalyst for development, empowerment and upliftment of many millions of people. It plays a significant role in conservation and subscribes to internationally acceptable environmental practices. The extent of forestry certification in terms of FSC and / or ISO requirements is in excess of 70%. The forestry and forest products industries have a capital base of some + US$ 7 billion and an annual turnover of some US $ 2,5 billion.

 

A total of 125 000 people are employed in the forestry and forest products industries. 

 

NOTES ON 2007 STATISTICS:

 

SAWN TIMBER

 

A feature of 2007 was the continued reduction in sawn softwood timber production – be it at a more modest 2,5% compared to the 8,9% reduction the previous year.

 

The figures again include the estimated production out of informal mills.  Unfortunately the hardwood figures for both formal and informal mills are not available, so the figures shown below are for softwood only.  In 2006 the total estimated sawn hardwoods production out of formal and informal mills was 136 000 m³.

 

The decrease in production of sawn softwoods continues to be mainly as a result of a reduced availability of sawlogs.

 

In a discussion with Mike Edwards of Forestry South Africa I was told that we can take the total sustainable production of timber in South Africa to be 20 000 000 m³ of timber per annum.  The overall demand for timber in South Africa has reached a figure of 23 000 000 m³ giving a shortfall of 3 000 000 m³ per annum at the present rate of demand. 

 

The present demand for sawn timber alone is estimated to be 750 000 m³ per annum greater than what can be produced locally.  This debacle in the forestry industry is another example of government incompetence which will have a serious negative effect on the forestry industry for many years to come.  The increased timber which is needed now should have been planted years ago.  Timber planted now will only become available in years to come.  The restrictions on planting timber placed on the forestry industry by the government are nothing short of a detrimental interference in private enterprise.  What is even more exasperating is the fact that still nothing substantial is being done to correct the situation.

 

I regard the debacle in the forestry industry as a similar situation as the Eskom circumstances and in hindsight they both could have been avoided by intelligent vision and appropriate action.

 

Getting back to the Statistics.

 

If we assume that the production of sawn hardwoods in 2007 was similar to that which was produced in 2006 we get a total production of both softwood and hardwood sawn timber in 2007 of 2 548 000m³ (2006 = 2 592 000 m³).  The treatment of sawn timber represents 18,5% of this total (2007 = 17%).

 

Any treatment of imported sawn timber will alter this percentage.

 

Some serious consequences of the shortage of timber are:-

 

  • The rising cost of roundwood from the plantation which directly effects the selling price of sawn timber.  The average selling price of treated sawn structural timber to the builder in 2007 reached a record level of R3424 per m³.  The average selling price of CCA treatment included in this figure is R250 per m³ which represents 7,3% of the R3424 per m³.  It was not long ago that the price of treatment included in the price for treated sawn timber was 13%, which I believe demonstrates how much more the cost of timber has increased compared to the cost of treatment, notwithstanding substantial increases in the rand cost of copper, chrome and arsenic.
  • The increased use of alternative materials; as an example, the increase in the use of steel trusses and framing.  I am aware of one case where steel truss production of a large player in the market has reached 22% of the wooden truss production figure.

 

It is again because of the continued cooperation from Crickmay that we are able to give the sawn timber figures.

 

FORMAL SAWMILLS

 

 

 

 

‘000m³

 

 

 

2007

 

2006

 

Softwood

 

 

 

 

 

Structural

 

1128

 

1123

 

Furniture

 

303

 

333

 

Packaging and Other

 

292

 

298

 

Export

 

16

 

29

 

Total Softwoods

 

1739

 

1783

 

INFORMAL MILLS including Bushmills (estimated)

 

 

Softwood

 

673

 

673

 

 

Grand Total

 

2412

 

2456

 

 

                                   

TREATED POLES

 

The average selling prices for poles in the various categories during 2007 were as follows:-

 

PINE                                                                     ‘000 m³                   Ex-Works Ave Price

                                                                                                                        Rand / M³

 

TRANSMISSION                                                      12                                1679

TELEPHONE                                                              3                                1484

OTHER                                                                       77                                1559

SUB TOTAL                                                              92                                1572

 

GUM

 

TRANSMISSION                                                      189                              1375

TELEPHONE                                                               15                              1375

OTHER                                                                       351                              1150

 

SUB TOTAL                                                              555                              1233   

 

TOTAL                                                                      647                              1281

 

 

The overall average of R1281 per m³ represents an increase of 16% over 2006 – a record high in terms of both selling price and volume.

 

I estimate that the total number of treated poles sold during 2007 was approximately 40 million poles.

 

SALES OF PRESERVATIVES

 

Sales of treated timber represent a usage of 5248 tonnes of CCA (2006 = 5015 tonnes) and 36385 tonnes of Creosote (2006 = 33558 tonnes.)

 

 

ACKNOWLEDGEMENTS

 

We are grateful for the co-operation and input received from Pierre Tullis of SAUPA, Marais Wium of PG Bison (Woodline), Mandy Allpass of Crickmay, Wim Gerber of TPS and also the wood preservative manufacturers all of whom have contributed to these figures and thereby allowed us to produce meaningful statistics.

 

Treatmentwise, notwithstanding the problems, it has been another good year.

 

 

ANGUS CURRIE

Executive Director

 

The latest statistics of treated timber sales out of treatment plants situated in South Africa are as follows:

TREATED SAWN WOOD SALES

CALENDAR YEAR

1997 - 343 000 m³
1998 - 336 000 m³
1999 - 271 000 m³
2000 - 279 000 m³
2001 - 294 000 m³
2002 - 373 000 m³
2003 – 378 000 m³
2004 - 375 000 m³
2005 - 456 000 m³  
2006 - 451 000 m³  

2007 - 471 000 m³  

 

THE VOLUME OF SAWN WOOD SOLD DURING 2007 WAS MADE UP AS FOLLOWS:

'000 m³

CCA

457

 

Change over previous year %

+5%

 

Boron

1

 

 

-50%

 

LOSP

13

 

 

Nil

 

Total

471

 

Total

 +4%

(LOSP = TBTO / TBTN / ZP)

 

TREATED POLE SALES

 

Calendar Year

Sales R Million

Sales '000 m³

Average Rand / 000 m³

% Rand Increase over Previous Year

1997

306

482

634

3%

1998

300

465

645

2%

1999

336

526

639

-1%

2000

318

467

682

+7%

2001

371

508

731

+7%

2002

413

545

758

+4%

2003

443

533

831

+10%

2004

494

550

897

+8%

2005

597

585

1024

+14%

2006

645

584

1104

+8%

2007

829

647

1281

+16%

 

THE VOLUME OF POLES SOLD DURING 2007 WAS MADE UP AS FOLLOWS:-

 

 

000 m³

Creosote

383

Change made over Previous Year%

+14%

 

CCA

257

 

+ 6%

 

Boron

6

 

+20%

 

CCA Alternatives

1

 

-

 

Total

647

 

+11%

 

 

ESTIMATED VOLUMES OF TREATED WOOD POLE SALES FOR 2007 - '000 m³

 

 

 

PINE

GUM

TOTAL

Transmission Poles

12

189

201

Telephone Poles

3

15

18

Other

77

351

428

TOTAL

92

555

647

 

The number of treatment plants operating in South Africa are:

 

Creosote

45

Boron

5

CCA

134

TBTO / Lindane

10

 

194

 

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