in this issue - nct forest 2006 sept.pdf · norman sibetha, a timber contractor based in hilton...

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N E W S & V I E W S • September 2006

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Forest Stewardship

Council A.C.

FSC certified: 80 000ha.

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principles and criteria

N º 6 1 • S E P T E M B E R 2 0 0 6

Inthis

issue

Newappointmentto NCT Board

2006Tree Farmersof the year

Land reform –the options

NationalGrasslandsprogramme

L i n k i n g i n d e p e n d e n t t i m b e r g r o w e r s t o m a r k e t s

Norman sibetha, a timber contractor based in Hilton outside pietermaritzburg has been

appointed to nCt’s board of directors.a member of nCt since 2002, he has fostered

NEW DIRECTOR FOR NCT

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New AppoiNtmeNt

Iain ThompsonTree Breeder

Forest Technology Services Department

INTERNaL aFFaIRspromotioN

Vaughan LascellesDistrict Manager – Nelspruit

a close relationship with the Co-operative and also provides a silviculture service to one of its farms.

norman has grown his timber contractor business into a successful operation, supplying timber to local sawmills and pulpwood timber to nCt. His intuitive and astute business qualities and experience in the forestry industry will be of great value to the nCt board.

although his qualification rests in electrical engineering (he spent some 12 years in electronics networking), norman developed an interest in forestry during his early years in bulwer.

“He is highly respected and has played a significant role in the industry through active involvement in community developments and the very topical bbbee (broad-based black economic empowerment) Forestry Charter process,” says dr Carl seele, nCt Forestry’s board Chairman.

evidence of norman’s involvement in the bbbee Forestry Charter has been through the Contractors’ working group where he has been very vocal in representing forestry contractors.

norman, an influential figure in his community, also played a leading role in setting up the Hans Merensky Singilanga Trust. His appointment to the nCt board is in terms of the Co-operative’s statute.

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O ver the years, nCt has paid particular attention to its skills development programme and addressing the needs

of its employees. to date, the Co-operative has r ece i ved g rant s exceed ing r600 000 from the Forestry industries education & training authority (Fieta) for this purpose.

nCt has a l located i t s F i e t a f u n d s t o programmes where skills are in dire need. its adult literacy programme is a high priority. thirty-nine learners from nCt’s subs id iary, nCt tree Farming schemes and farms have participated in the programme with numbers increasing every year.

the shortage of skil led black foresters in the industry has led nCt to identify suitable candidates to participate in a forestry scholarship programme. this year, a labourer from the baynesfield estate was registered at saasveld and nCt anticipates doubling the number of candidates annually.

another critical area in need of skills in the industry is tree breeding. nCt and Fieta formed a partnership to train tree breeders and develop expertise in a field where it is required. in collaboration with the institute for Commercial Forestry research and the University of kZn, two students were registered for their masters degrees in genetics. these projects have the potential to be expanded to doctorates.

in line with its employment equity policy, nCt awards discretionary grants and support for higher

education to staff from previously disadvantaged backgrounds pursuing under- and post-graduate degrees and diplomas.

“growth and development is essential for any business to operate successfully

in these dynamic t imes , ” s a y s nCt ’s gene ra l manage r,

p a t r i c k k ime . “However, this cannot

b e a c h i e v e d w i t h o u t appropriate skil ls. nCt i s f u l l y c o m m i t t e d t o providing its employees w i t h t h e t o o l s a n d knowledge to perform at the highest level.”

“we are also grateful for Fieta’s support and

are privileged to be in a pos i t ion to make a

meaningful contribution to the communi ty and industry as a

whole,” he concludes.

INVESTING

FIETA CEO, Simangaliso Mkhwanazi (second from left), visited NCT recently and is seen here with

Masters’ students (l-r) Nuvesheen Naidoo, Zama Ndlovu and Florence Nyembe former ABET learner

and now facilitator from Baynesfield.

IN SKILLS

In his address to Members and guests at this year’s AGM, NCT Chairman, Dr Carl Seele dealt with issues affecting timber farmers, single species development and Pulp United. Here is an abridged version of his report:

“ if one wanted to briefly describe the present state of the timber farmer in south africa, then it would likely be most appropriate to do this by using the phrase “a

state of extreme uncertainty. High up on the list of uncertainties is the whole question

of land claims and land redistribution. this highly politicised issue is being dealt with by organised agriculture and Forestry south africa, and it is not nCt’s responsibility to deal with this matter on a political level. However there is one aspect affecting many of our members which is often overlooked.

the notion that by simply giving people access to agricultural (or by implication forestry) land and that one will create wealth, is romantic, old fashioned and does not fit into our modern industrialised and service-orientated world.

the initial idea that all that was needed was simply to transfer land to communities. it was then realised that the transfer to individuals created a greater chance of success followed further by the realisation that the transfer of land without the transfer of knowledge was a recipe for disaster.

to be a successful farmer or tree farmer, you need more than mere land and training; you need the attitude and spirit of an entrepreneur.

nCt’s black members have proved that they are prime examples of individuals who have the ability to be

successful entrepreneurs and businessmen in the forestry sector. Very few of them have benefited

from the redistribution and transfer of forestry land. the real danger for the forestry sector is that this whole process could lead to a major reduction of production if not

handled correctly.the rand/Us dollar exchange rate

is another uncertainty facing timber farmers. a year ago, we were quite hopeful of a weaker rand only to be confronted with a very strong rand at the beginning of 2006. the reality is that the profitability of our hardwood pulpwood business is linked to the fluctuation of the rand.”

Challenges faCing

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other factors, according to dr seele, contributing to the uncertainty of timber farmers, are:• thesustainabilityofthepresenteconomicboom

in south africa resulting in a high demand for non-pulpwood products;

• theescalatingoilprice;• thenewCo-operatives’Actwhichcouldimpact

on nCt’s business structure;• theunavailabilityoflabour;• the inflexible and burdensome South African

Labour policies; and• escalatingtaxes

“ t h e w o r l d w i d e d e m a n d f o r o u r product is stable and in most cases growing. Coupled to this is our ability to compete with the rest of the w o r l d w i t h o u t having to rely on local subsidisation a n d p r o t e c t i o n . a d d e d t o t h e sol id f o u n d a t i o n o f o u r industry is the stability of the Japanese market for our hardwood pulpwood sector.

t h e h a r d w o o d pulpwood growers have reason to appreciate the strong and sound relations that have been built up between our chipping organisations and their Japanese customers. this very stable market situation is further enhanced by the high standard and efficiency of our chipping operations, ensuring market acceptability of our product.

Looking at the labour market, we are at least in the position that this can be counterbalanced and stabilised by the recent developments and refinements of mechanical harvesting systems. one would not be wrong to say that the south african forestry industry is in the midst of one of the greater mechanisation revolutions it has ever experienced. a lot of adaptation will be required but at least plan b is on the table to address the labour problems appearing.

the final factor of stability to be mentioned is the focus of your co-operative. the success of nCt

has been based on• focusingontimbermarketinganddevelopment

of such markets;• providing additional services to Members

only when requested to do so and when such services are not readily available elsewhere; and

• transparencyanddemocraticMembercontrol.members can be assured that there is no

intention to move away from nCt’s principles even if the structure of nCt should have to change.”

the Chairman also addressed the issue of single species development a n d t h e p r o g r e s s

m a d e o n p u l p United.

“even though the present very favourable d e m a n d s i t u a t i o n tends to lessen the n e e d f o r s i n g l e Euca lyptus spec ies deve lopment , th i s work has to remain v e r y i m p o r t a n t to prepare us fo r potent ia l medium- a n d l o n g - t e r m marketing problems. plans are now far advanced for the first

shipments of E. smithii woodchips in order to perform full-scale commercial evaluation of this species.

the withdrawal of södra from pulp United about nine months ago was a disappointment and setback but the prospect of nCt being seriously involved in the ownership and operation of a pulping plant remains as exciting as ever.

excellent work has been done on reducing the initial investment cost and the major focus at the moment is the identification of the best potential partners in order to fulfil the needs of equity, operational support and marketing support.

what is most encouraging and what has been confirmed again and again from various parties is the view that the pulp qualities of the proposed Eucalyptus bCtmp are superior to other bCtmp pulp. all indications are that we are onto something with great potential.”

“Members can be assured that there is no intention to move

away from NCT’s principles even if the

structure of NCT should have to change.”

farmers

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E ntrepreneurship is what makes industry tick and this is the strength on which Lawrence Hoatson has built his group of businesses.

Lawrence has had an eight-year association with nCt Forestry, with the co-operative supplying its members’ timber to thornville sawmills since 1998. Volume supplied to date is over 100 000 tonnes.

the group is made up of tekwani sawmills (pty) Limited, thornville sawmills (pty) Limited, normandien and mansfield farms.

their core business is structural sawmilling supplying the domestic construction and building industry. the business is managed by Lawrence and his sons, sean (group operations manager), Jonathan (manager-thornville) and robin (manager-normandien). matthew will join his brothers once he has completed his articles as a Chartered accountant.

Lawrence entered the industry in the early 1970’s as a contractor/transporter for woodline. when the timber company closed the unit down, he seized the opportunity to start up his own business and purchased tekwani sawmills at mt ayliff from them in 1992. in 1996, he set up an export plant in pietermaritzburg and then went on to establish thornville sawmills in 1998 to supply the export unit.

Lawrence found the export market a very dynamic and challenging one. while the Us dollar remained strong against the rand, business flourished, but when the tide turned, so did the export enterprise.

despite the battering, Lawrence has shown true grit and today continues to supply structural timber to a growing building industry.

“there have been lessons learnt and when the time is right, we’ll get back into the export trade,” says Lawrence.

“one of the challenges facing the timber industry is securing resource and that is why we

purchased normandien farm near newcastle and mansfield farm at mount west. we need to be as self-sufficient as possible to meet our projected requirements,” says sean Hoatson, the group’s operational manager.

with pine being their main resource, how has the sirex wood wasp affected business?

“sirex does place pressure on volume and it has been identified in areas where harvesting takes place. we have found by thinning and pruning the risk and incidence of sirex is lower than if no thinning or pruning is done,” continues sean.

the Hoatsons have been successful at what they do due to good business savvy, astute strategic decisions, hard work and taking advantage of opportunities. it is a vertically integrated business with no red tape to contend with.

they have diversified the business and today also provide an all-inclusive stump-to-mill service - harvesting/short & long haul/transport to mill.

perhaps what stands out most for the Hoatsons is the synergy that exists between the business units & nCt.

“we have had excellent service from nCt and hope our relationship continues into the future,” comments Lawrence.

nCt, in turn, values the steady supply of cold-tolerant eucalypts from the Hoatson group.

so, where to from here?“we will continue to provide quality

timber to our customers but we also require quality timber from nCt’s members. our best advice to members is to add value to their timber by looking after their trees. good silvicultural practices in the initial stages of growing will result in better prices for trees when they are harvested,” concludes sean.

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The 2006 tree Farmers of the Year were announced at nCt’s agm recently.

ewald köhne received the tree Farmer of the Year in the category of a farm managed on privately-owned land and Vusumuzi ndlovu awarded in the category of a farm managed on communal land. the winners were accredited for their exceptional management and silviculture practices applied on their farms, as well as care for the environment in which they operate.

köhne, from Hermannsburg in the kZn midlands, was recognised for managing the 130-year old family farm, Waldecke, as a productive and sustainable farm with a strong conservation ethic. an outstanding aspect of the operation is the utilisation of resources produced on the farm – timber, bark, poles, firewood, thatch grass and a beef herd of 300 animals of which 142 are pure-bred Herefords.

the land is 445ha in extent with 249ha planted to timber (181ha wattle, 5,5ha eucalypts, 53ha pine and 9,5ha poplar). other productive land-use includes dry-land maize, dry-land pastures, irrigated pastures and veld. wetlands and riparian areas make up 31ha and are carefully managed for conservation purposes.

köhne was also recognised by the Umvoti branch of the wildlife & environmental society of sa in 1999 as “conservationist of the year”. His interest in bio-diversity is reflected through his efforts in wetland delineation and restoration, erosion control on firebreaks, the rehabilitation of a quarry with no signs of erosion on his network of roads.

in the category of a farm managed on communal land, Vusumuzi ndlovu, from kwambonambi near richards bay, was acknowledged for his management practices in silviculture, harvesting, road infrastructure and soil conservation. He manages a total of 20ha of which 18.5ha is planted to gum in the sokhulu tribal authority. ndlovu has also diversified his business by investing in the timber haulage business to support his forestry operation.

ndlovu turned a weed infested block of “jungle” gum, into a superior resource achieving fast and uniform growth. He maintains a good road system with clear boundaries and fire belts within compartments. Labour relations, training and health and safety are clearly a priority on his management schedule and he conducts a strict regimen for his staff to follow.

He took over the management of the timber land from his parents after completing school. Faced with unemployment, he rehabilitated the Eucalyptus areas they had as a family, converting it into a properly-managed plantation. this operation was funded through the sales of the timber from the scrub areas.

the nCt tree Farmer of the Year was initiated in 2000. the awards recognise nCt members who display excellence in sustainable forestry practice. two prizes are awarded annually. this year, each winner received a Stihl chain-saw sponsored by:

Seen here with NCT Chairman, Dr Carl Seele, are this year’s runners’ up - Gevu Ntanzi from Greytown

& receiving the certificate on behalf of Trevor Schefermann from Vryheid is his father, Vernon.

TREE FARMERS OF THE YEAR

Ewald Köhne

Vusimuzi Ndlovu

Stihl Pietermaritzburg

tHe importANCe oF rAiL to NCt

spoornet has always played an integral part in nCt’s overall competitiveness and service offering to its grower base.

to illustrate this, consider the value of spoornet to nCt’s business. nCt despatches by rail approximately 50 000 tonnes of timber per month at a cost of r4 million. timber is transported from as far as swellendam in the southern Cape and nelspruit in mpumalanga to richards bay. as a rule of thumb, rail transport is the only viable mode of transport for distances over 1 000 km to move high volume bulk commodities with relatively low values, like roundwood timber.

rail as a viable transportation option creates a competitive environment not only between rail and road, but also among road hauliers which ensures competitive transport tariffs to growers at all times all over the country.

For nCt, when making appropriate use of rail transport, it

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assists with the minimisation of real transport costs applicable to the total volume of approximately 2,5 million tonnes moved per annum.

timber despatched from as far as the Cape and mpumalanga also means that rail tariffs assist in the creation of economic activity and opportunity for growers in these areas. nCt can therefore utilise every tonne of wattle and gum sold to the benefit of all its growers. Higher volumes through the processing plants (CtC, shinCel and nCt durban wood Chips) improve the economies of scale. this reduces overhead fixed costs per unit processed which benefits all growers in terms of pricing and also making nCt’s subsidiaries globally competitive.

in recent years, spoornet evolved from an organisation with a strong socio-economic focus to a more profit-driven business. this means that focus is applied to the deployment of resources to the more profitable cargoes such as coal, and less attention is given to lower income generating cargos such as timber.

the higher than ppi (production price index) rate increases imposed from 2002–2004 was proof of this; it improved the profitability of timber in spoornet’s financial statements but reduced

“Old spoornet” “New railways”

Wagons

Locomotives

Brachlineinfrastructure

Branchlines Wagons

Locomotives

Evolve

Mature

volumes on branchlines. this development negatively affected rural communities which could not grow timber profitably. it threatened a secondary economic activity based in rural areas which might grind to a halt in certain areas with disastrous social consequences.

the diagram below illustrates the current position of doing rail business in south africa and also the move towards a new “transformed” state-of-affairs. nCt participates in this transformation. it is appointed to a task team co-chaired by kZn department of transport and national department of transport to assist in developing prototype future structures for various regulatory bodies such as the Commercial and the access regulators. these regulatory bodies will govern future business interactions between all stakeholders within a prescribed framework.

the new structure considers the interests of provincial governments, cargo owners and local communities in deciding the movement of commercial freight through the province. it also paves the way for the operation of private accredited rail operators which should be able to create competition and assist in unlocking value for all concerned.

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owned & operated bySpoornet only

owned byNDOT/KZNDOT

• Operatedbyprivateoperators or Spoornet.

• Privateoperatorscanleasefrom Spoornet or own their own rolling stock.

Commercial, access & safety regulators

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Woodchips are the prime source of paper pulp to markets in Japan but what about their electricity generating capabilities?

nCt’s durban wood Chips’ business partner, Hokuetsu paper mills has lessened its dependence on fossil fuels and switched to natural gas and biomass energy using woodchips.

biomass, consisting mainly of resin, is extracted from woodchips in the pulping process and produces a by-product known as black liquor. at the niigata mill - where all durban’s

Lessening the impactLESSENING THE IMPACT

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Once the loaded woodchip vessel leaves Durban, it arrives at the Niigata east port woodchip yard some four weeks later. The port can unload up to five vessels of woodchips simultaneously.

Twenty-two permanent staff manage six species of timber, offloading at a rate of 1 300 tonnes per hour.

Vesse l s ber th 200m away from the wood yard where road trucks with payloads of 15 tonnes transport woodchips to the Niigata mill 25kms away.

The mill consumes 1,2m tonnes of woodchips per annum and produce paper, liner board, filter material, cups and cutlery for the consumer market.

Lessening the impacton the environmentON THE ENVIRONMENT

woodchips are delivered to - 70% of power used is supplied by the biomass-generated electricity that utilises this black liquor for boiler fuel.

since black liquor is extracted from woodchips, there is no procurement cost. the annual reduction in petroleum costs amounts to Ұ150 billion in terms of heavy oil for the entire paper industry in Japan.

the biomass power generating recovery boiler at the niigata mill is the largest in Japan that burns black liquor and has a total capacity of generating more than 140 000kw of electricity. the mill has reduced its consumption of heavy oil for power generation by 35% (30 000kl annually, equivalent to one tanker load) since installation of the recovery boiler.

today, the niigata mill has cut up to 900 000 tonnes of carbon dioxide emissions annually by switching to black liquor and Hokuetsu paper mills aims to eliminate heavy oil consumption altogether at all its mills.

a n o t h e r f e a t h e r i n H o k u e t s u ’s environmental cap is its 100% elemental chlorine-free (eCF) eco-pulp. Hokuetsu has used this bleaching method since 1998 – the first in Japan.

this process discharges practically no organic chlorinated compounds, drastically reducing the need for treating discharged water. eCF involves no handling risks and releases no hazardous substances. there is also less damage to fibers and the pulp produced better withstands recycling.

the eco-pulp produced by Hokuetsu has been known to be environmentally-friendly and has become a worldwide standard.

The national grassland programme (ngbp) is a regional programme that is being developed to conserve biodiversity within

the grassland biome. the programme is being co-ordinated by the

south african biodiversity institute and is being funded largely by government institutions, the wwF green trust and the United nations development programme – environmental Fund.

What is the Grassland Biome?south africa is divided into nine biomes that are

areas of the country sharing certain ecological and climatic characteristics. the grasslands form the biggest of these biomes, covering about a third of the country.

the term grassland is a bit of a misnomer because only one in six plant species in the biome are grasses. the remainder are predominantly bulbous plants that include arum lilies, orchards, red-hot pokers, aloes, watsonias, gladioli and ground orchards. there are many other species, habitats and ecosystems that form an important

part of the grassland biome, including river and wetland systems.

Why are grasslands important?grasslands contain a wide variety of plants and

animals that are important for human development and well-being. the grasslands host a diversity of indigenous species second only to the Cape Floristic region. they contain several endemic fish species, high number of threatened mammals, 10 of the 14 globally threatened bird species and 52 of the 122 important bird areas in south africa.

they also deliver essential eco-system services such as water shedding and wetland functioning, upon which economic development is dependent.

Where is the grassland biome?grasslands cover an area from the interior of the

eastern Cape and kwaZulu-natal provinces over the escarpment and into the central plateau (see map).

the majority of people in south africa live in

- Craig Norris, Manager, Forest Technology Services -

Biomes of South Africa, Lesotho and Swaziland as derived from Mucina, L & Rutherford, MC (eds.) 2004. Vegetation map of South Africa, Lesotho and Swaziland. Beta version 4.0, February 2004, NBI, CT

NATIONAL GRASSLAND PROGRAMME

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the grasslands because it contains the economic heartland, large coal deposits, gold fields and agriculturally productive land.

What is the importance of the NGBP?the grassland biome is one of the most

threatened biomes in south africa, with 40% irreversibly transformed and only 2.8% formally conserved. about 20% is cultivated for cash crops such as maize, wheat, sugar and potatoes. afforestation has also been a key transformer of high rainfall grassland areas. Virtually the entire untransformed grassland area is used as rangeland for cattle and sheep.

the dilemma facing this programme is that on the one hand grasslands provide essential eco-system services necessary for economic development, but on the other this very development threatens these grasslands.

the programme aims to secure conservation status of key grasslands by engaging land users and providing incentives. the forestry sector has been identified as a key stakeholder in this process.

What is NCT’s role in the programme?nCt has been approached to represent the

interests of medium-scale timber growers in the industry. we are in the process of identifying grassland areas of biodiversity significance that could be considered for inclusion in the programme. we are also investigating ways in which private land-owners could benefit from committing unplanted areas for conservation status. this could include:• assistance with assessing grasslands on farms

and compiling management plans.• ongoing monitoring of areas of conservation

significance.• material assistance with managing these areas.• development of incentives for farmers to

conserve representative eco-systems (eg tax rebates/reduced property rates etc)

nCt members who are FsC certified have to manage certain areas of their farms as representative eco-systems. by linking grassland areas that have high conservation value into the ngbp these members could receive additional assistance with managing these important areas.

Reference: Summary Document - National GrasslandBiodiversityProgramme.

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Threatened species that occur in grassland habitats

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F orestry along the garden route has been plagued by a number of events in the past decade that has left a trail of disruptions in

forestry, the impact of which will be difficult to rectify for years to come.

the fire in 1996 in the outeniqua district claimed 6 000ha of prime pine stands. this occurred when interest rates were gaining momentum to an all time high and private owners of saw logs were struggling to sell mediocre, high quality volumes to mills in the george and knysna districts. the building industry came to a virtual standstill with interest rates peaking at over 23% and prime P. radiata d logs were selling at an average of r150-00 per m3 delivered at mill.

the saFCoL-managed state-owned forests in the area came under scrutiny at the time, and a decision (later referred to as the Exit Strategy) was made to reduce the planted area in the knysna and george district from 30 000ha to about 6 000ha by 2015. the rationale was that the majority of plantations yielded a mean annual increment of less than 11 and that only compartments yielding

higher than that or a 22% increase in the timber price, the strategy would be reconsidered.

in retrospect, the decision to progress immediately and clear-fell vast areas of prime 4–5 year old P. radiata at a time when the demand for vineyard poles was soaring, and could be harvested from 6–8 year old compartments, is severely criticised.

the new millennium brought about its own challenges; an already dwindling supply and a steadily declining interest rate started a negative spiral that is still in recovery. by 2004, the repo rate hit its lowest level in years and the demand for structural timber triggered a rosy outlook for round log suppliers.

this however introduced an era where smaller saw millers were regarded as “brave to be in the business”, and a pull in price became the norm to date (Figure 1 depicts the change in commodity prices in the past five years up to the current delivered prices achieved by nCt members from 1 July 2006). the imminent demise of some smaller sawmills became the norm over the past

Cape region price escalations:is this localised or a national tendency?

Marius Neser, District Manager (George), Commercial Services

SPECIAL

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two years.in 2005, approximately 15 000ha of pine

forests valued at more than r100 million went up in smoke in a fire in the tsitsikamma region of the garden route. Cape sawmills, who acquired the majority of the old safcol plantations in the eastern and western Cape barely a year earlier, are still struggling with the loss.

since take-over, Cape sawmills embarked on first stalling and then turning around the Exit Strategy legacy left by the previous owners. this is believed to have been successful, and areas that were cleared to waste will be re-planted. Unfortunately forestry cycles are long, and significant gaps will be left in the age class distribution of the region.

this chain of events started a price war among primary processors attempting to secure raw material in a very hostile environment. 2005 was earmarked by annual price negotiations that were replaced by bi-annual ones as buyers started pulling the price of certain commodities upwards. in the southern Cape certain buyers of round logs secured future supplies by “throwing money at the problem”. this was done by paying lump sums upfront for a right to first refusal on the total produce of medium growers for a five to seven year period.

despite the escalation of timber prices at an average of 15% per annum, over the past six years in the garden route (20% in the past year), comparative analysis show that these prices, after

the most recent increases, have only now caught up with the prices in place with the larger suppliers in the mpumalanga area like komatiland Forest products and global Forest products.

Comparing points of sale prices, the cost of transporting timber over an average distance of 50km in the garden route is three times higher than that of the cost in the mpumalanga area. growers in the Cape region are attempting to be on a par with the roadside price in mpumalanga, and it is likely that higher mill delivered prices will be the rule in the next six months due to this high transport component, constantly fuelled by an ever-increasing diesoline price as the rand weakens and crude oil prices soar.

what does this hold for the secondary processor and end-user of timber?

interviews with larger growers that are integrated downstream indicate that they no longer view plantations to only break-even and to add the value further down in the supply chain.

the view is rather to see plantations as the cash-cow of the future and to settle for smaller profit margins at sawmills. the most likely result is that end-users will not feel the pinch right now, but it is inevitable that it will not remain like this as costs begin to creep upward in an environment anticipating interest rate hikes, and the concurrent escalation in costs. a logical conclusion, therefore, is that the price of finished products is deemed to increase in the near future.

Figure 1: Saw log prices 2001 to date

MARKETS

2001 2002 2003 2004 2005 2006 Current0

200

400

600A

B

C

D

saw log price per log class

The iCFr hosted this year’s second Forest science research symposium at the

University of kwaZulu-natal. the symposium attracted over 120 forestry researchers, managers and practitioners.

in addition to a diverse programme covering all aspects of the forestry supply chain and addressing research at both the specific and “big-picture” level, the event also provided a valuable opportunity for interaction and networking.

Highlights of the programme were the opening plenary paper by prof. norman pammenter (school of biological and Conservation sciences, University of kwaZulu-natal) on the basics of understanding water movement through plants and Carol rolando’s research into understanding the role of water in the re-establishment of pines.

rob pallett (sappi) and keith Little (iCFr) focussed on the role of silviculture in plantation management and productivity. a number of speakers discussed the importance of modelling tools for plantation management, predicting plantation productivity and

addressing potential risk. Jolanda roux and bernard

slippers from Fabi (Forestry and biotechnology institute at the University of pretoria) presented research on pests and diseases threatening forestry in south africa, the successful management of which requires effective communication and collaboration by all stakeholders. research into producing genetically improved eucalypt and pine seed, as well as sterile wattle was also discussed.

sappi’s andrew morris translated the value of tree improvement through to the end product, namely wood properties.

the forestry industry is highly dependant on an effective road transport system. the iCFr’s Francois oberholzer discussed a self-regulation initiative to counter heavy vehicle overloading and stellenbosch University’s pierre ackerman presented research assessing the condition of the south african provincial road network.

For more information, contact Sally Upfold on 033-3882316 or [email protected]

I C F RC O R N E R

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L and reform is as inescapable as ‘death’ and ‘taxes’ but thankfully the trauma associated thereto,

can be made into a more manageable, bearable and beneficial case for the farmer wishing to remain a positive and critical contributor.

knowing what we face, this statement may seem paradoxical. as farmers who want to survive and prosper in a rapidly changing south african environment, we have no option but to align ourselves as an integral part of the overall solution. south african farmers have a wonderful reputation to adapt and flourish under the harshest circumstances.

given the current state resources and mal-aligned understanding of the agricultural industry, farmers are ironically best positioned to provide the required capacities and engineer the best solutions on a quid pro quo basis. resistance and conflict is certainly not an option.

what is encouraging are signs of a dawning realisation by the state that the key to successful land reform lies in establishing sustainable and viable land transactions, as important contributors to local economies.

agriculture and Land affairs minister, Lulu Xingwana recently stated that transferred farm operations had to

be sustained and implied that the co-operation of the private sector was required.

this approach diverts from a predominantly ‘demand driven’ one to a more ‘integrated’ one including municipal development plans, focus on commodities and the assistance of mentors from the established farming community.

we must capitalise on this positive sentiment. we have a critical role to play as ‘bridge builders’ between ourselves as established farmers, the state, affected communities/claimants and local business.

Farmers are encouraged therefore to take a step back and responsibly assess all qualified land reform information available.

Local agricultural associations or the nCt Help desk can be of assistance here. attend meetings and become actively involved. don’t adopt an ‘isolationist’ approach.

a progressive mindset and a willingness to proactively build partnerships, meet with stakeholders and propose innovative win-win solutions are the ‘weapons’ available in our arsenal. Use these well and the farmer will be able to adapt successfully to any changed environment.

Rob Thompson, Manager, Member Services

THE CRITICAL ROLE OFTHE FARMER IN LAND REFORM

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the maiden voyage of mitsui osk’s newest woodchip carrier, the Mimosa Africana, was celebrated at a launch held on the vessel at the port of richards bay in may.

representatives from CtC, nCt, twk, sumitomo Corporation, nippon paper, mitsui osk Lines and sa port operations attended.

the Mimosa Africana carries the same name as that of her predecessor which sailed between south africa and Japan from 1975 to 1997. the former Mimosa Africana was the first vessel to carry woodchips on behalf of CtC from durban in 1975.

rein Franz, general manager of CtC, clearly remembers that day: “back then, it took us 12 days to load 21 000 tonnes; these days it takes only three days to load 38 000 tonnes”.

k e n H a y a s h i , general manager of mitsui osk Lines, said that it was an honour to name the new vessel the Mimosa Africana and that he hopes she will leave a memory as great as that of the first. the Mimosa Africana is now their 37th dedicated woodchip vessel.

since inception 31 years ago, CtC

have enjoyed a continuous relationship with both sumitomo Corporation and nippon paper industries. to date, CtC have exported over 25 million tonnes of woodchips to Japan. The Mimosa Africana will carry the 788th load of woodchips to Japan.

“this celebration is not only a memorable occasion in itself but a historic one too. CtC will continue to grow and strive to offer a quality product that meets the demands of the woodchip industry,” concludes rein.

For more information, contact nicola brandsma on 033-3451388 or [email protected].

TheMimosaAfricanaberthingatthePortofRichards Bay

PerformingthetraditionalJapanese‘Kagamiwari’(barrelbreakingceremony)(l-r)TonyHattori(GeneralManager,SumitomoCorporation,JohannesburgBranch),AtsushiArimoto(RepresentativePietermaritzburg,NipponPaperIndustries),ReinFranz(GeneralManager,CTC),WarrenVickers(SAPOCustomerServiceManager:

DBT) and Ken Hayashi (General Manager, Mitsui OSK)

Changes are underway for Working on Fire (WoF) in KwaZulu-Natal.

Gerard van Biljon from Mondi Business Paper in Melmoth replaced WoF stalwart, Ginge Hudson as Eastern Cluster Manager for KwaZulu-Natal and the Free State. His appointment was effective from May this year.

WoF’s co-ordination centre moved from Shafton (outside Howick) to more spacious facilities at nearby Rocky Ridge where provincial co-ordinator, Carol Hudson is at the helm. The provincial co-ordination centre will liaise with local dispatch centres and provide assistance with rapid mobilization of additional fire-fighting resources from WoF bases across South Africa.

Alasia Marketing based at Rocky Ridge will manage the new electronic camera detection system for the Lion’s River Fire Protection Association area. An Incident Command Centre will also be based at Rocky Ridge to manage large fire incidents for the KZN Midlands. WoF’s helitack crew remains at the Shafton firebase

where the WoF helicopter is on standby. Simon Thomas, Operations Manager for

the KZN Fire Protection Association, reports: “Two fixed wing spotter planes are also on standby while extra two fixed wing bombers are available at short notice should a fire get out of control.”

In Zululand, an area that suffered periods of extreme fire weather conditions last year, Fire Protection Officer, Trevor Wilson, is also ready for this season, with aerial and ground resources co-ordinated from the Kwambonambi base.

KwaZulu-Natal now boasts six officially registered Fire Protection Associations with a further two in the pipeline.

Fire-fighting in the province was given a huge boost last year when the KZN provincial Department of Agriculture and Environment allocated R5 million towards the fire-fighting effort resulting in six new veld fire-fighting crews being recruited in partnership with Ezemvelo KZN Wildlife. A further R7.3m has been committed this financial year.

To request fire-fighting assistance or report a fire, the Emergency Fire Line at the Co-ordination Centre is 033-3303717.

BUrNiNG iSSUeS

worKiNG oN Fire

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Courtesy: HBW Communications for Wof

Working on Fire (WoF) is a R35 million government-supported programme, formed in 2003 to develop an integrated national fire fighting prevention and wild fire fighting capacity.

Control centre at Rocky Ridge

25 yearsthe de billot trust

kr baseldw Jacklin

tanfield Farms (pty) Ltdstephen brand Family trust

Ce wichuramgH kadwa

milford estates CCem redinger

ap greenthe gifford Family trust

the david willey Family trustgJ Calverley

torquay trustJn theron

LJ van rooyenre Lilje

e&C Charcoal (pty) Ltdsingosi Holdings (pty) Ltd

danesfort Farmset eggerspL train

Haydn percival Family trustJ Voights & son (pty) Ltd

baynesfield estategs Hope

o aadnesgaardrm niebuhr

tg Fieldnw bowlesmvuma CCpC Hackland

mark patrick brand trustHJ mingayaJ grant

Ce edmondsUmgeni water

rocky ridge estates (pty) Ltdkarlshaven estates

sm stapylton-smithbeverley sugar estate (pty) Ltd

wF niebuhr

30 yearstJ Farming, Hermannsburg school trust,

Cg smith sugar Ltd, rw Foster,küsel sawmills (pty) Ltd, JH Labuschagne,

H gillitt, Jw stewart, Jwb talbot,Harding treated timber CC, rwm Hunt,

pda burdon, rt Foster,si Volschenk, o’neill estates CC,

aC gordon, pC davis,wichmann Farming partnership,

gn ross, prosper Farms CC,Chennels brothers, as gooch,

we messenger, stone bros partnership,me nellist

25 years (l-r) Shami Harichander for Umgeni Water, Waldemar Niebuhr, Reg Niebuhr & Bruce Gifford for the

Gifford Family Trust.

30 years (l-r) Kevin Cockburn for the Hermannsburg School Trust, Trevor O’Neill for O’Neill Estates, Tony Gooch, JHLabuschagne&KirkEggersforKüselSawmills(Pty)Ltd.

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long serving MembersNCT’s

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35 yearsJH van rooyen, rH kaiser, rF gevers,

Van rooyen Family trust, white thorn Farms,eland Valley trust, Vriendschap boerdery CC,owC ortmann, mag le sueur, Harum trust,bankplaas boerdery trust, duvel Farming,Hellberg Farms, Jb albers, rJ mcmurray,

Js pooler, Concord Farming,La van rooyen boerdery (pty) Ltd,

orando estates (pty) Ltd, e H wichmann, boschfontein trust, sn mcmurray

ivanhoe Farming Company (pty) Ltd,Conlink trust, Fountainhill estate

40 yearsmasonite (africa) Ltd, Fawn Leas estate,

Fowler Farming trust, ar mackenzie, HF stegen,ew köhne, pw brewitt

45 yearsaa Farms, er browning, r peattie & son,

bk peattie, the Freese Farming partnership,dg rowley

55 yearsHw klipp, Hb Varty, dixton estates

pJ shaw, kog rabewaterval trust, Holley brothers (pty) Ltd

Hs niebuhr, e Hohls, rH köhne

35 years (l-r) Gunther Köhne for Harum Trust, Heinrich Harris for Vriendschap Boerdery,

Stuart McMurray, Erlo Gevers for RF Gevers & Horst Hellberg for Hellberg Farms.

40 years (l-r) Ian Henderson of Masonite & Ewald Köhne

ABOVE: Barry Varty (left) receives his certificate for 55 years from NCT Chairman, Dr Carl Seele

45 years (l-r) Graeme Freese, Abie Surendorff forAAFarms&BrucePeattieforRPeattie&Son

recognised

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G awie van dyk, Logistics Co-ordinator at the Vryheid office can also be labelled as nCt’s Evil Knievel.

gawie’s passion for speed and off-road bikes began when he was in the army. stationed at the equestrian centre in potchefstroom, he was involved in the army’s bike squad and spent many weekends demonstrating motor bike stunts at various shows around the country. today, he is ranked 6th in the sa national open Class group and participates in races all over south africa, swaziland and Lesotho.

gawie joined nCt in 2000 as member services Co-ordinator and prior to that, spent 10 years with mondi Forests in the kZn midlands.

He was recently appointed to the position of Logistics Co-ordinator for northern kZn and will now focus on the best possible transport service to members. this includes monitoring and managing prices to fair levels and to applying effective and efficient logistical techniques to the total supply chain.

“it has been long in the making and i’m confident that this shift in transport management will make a difference in moving members’ timber in the most economical, efficient and rateable way,” says gawie.

it is no wonder that gawie chose forestry as a profession; he was exposed to forestry from an early age - born and raised in “plantation” country (melmoth and greytown respectively) and furthermore his father was mondi’s regional manager for the ne Cape Forests.

a former saasveld graduate and mondi bursar, gawie wanted to become a teacher. “i have no regrets though,” he comments sarcastically, knowing what teachers have to go through today.

His new role as logistics co-ordinator will be challenging, exciting and sometimes nerve-wrecking and frustrating.

“what i will enjoy is the diversity and dynamic environment that i’m involved in. at the end of the day, there are targets to meet and a job to be done,” he concludes.

His other passions are his wife, Connie, and gardening.

N C T p r o F i L eG

Aw

ie V

AN

DyK

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Two specific trees are singled out every year during arbor week as trees of the Year. this year, the kosi palm

(Raphia australis) and the wild pomegranate (Burchellia bubalina) have been selected.

there are 20 species of raphia. these are found in tropical africa and madagascar, one from south america and indigenous to south africa, the majestic kosi palm (or umVuma in Zulu).

the kosi palm grows up to 24m tall and its natural distribution restricted to a small area south of kosi bay to 40 kms north of maputo. their habitat range suggests that they are frost sensitive.

a significant feature of the kosi palm is its very long, firm, upright leaves (sometimes growing up to 18 metres). the leaf bases are bright orange and contain “breathing” roots to cope with swampy soil.

the flower spike is covered by a three-metre sheath which falls away allowing the inflorescence to continue skywards resembling a floral rocket launch. the kosi palm flowers once when the tree is between 20 and 40 years old, and then dies.

Fresh seeds germinate easily if the outer skin has been removed. seedlings need filtered sunlight, lots of water and protection from the wind. the fruit is shiny brown with overlapping scales and take two years to develop. the fruit generally remain on the tree unless blown down by high winds or eaten by egyptian fruit bats and palmnut vultures.

the wild pomegranate (Burchellia bubalina) is a shrub/small tree that grows up to 8m tall. this monotypic genus belongs to the coffee family, Rubiaceae with some 7 000 species found mainly in the tropics. they are characterised by their opposite, entire leaves.

the wild pomegranate is found naturally in forests, forest margins, rocky outcrops and bush clumps in montane grasslands. the tree has a smooth, grey-brown bark that becomes rougher with age. their shiny dark-green leaves are soft when young becoming

leathery and thick as they age. From spring to mid-summer, the tree bears clusters

of small, tubular orange flowers followed by green, urn-shaped fruits. the fruits turn brown as they ripen and then become woody, remaining on the tree for many months.

Know your indigenous trees

Raphia Australis fruit

Burchellia bubalina

Raphia AustralisVisuals:TheCompleteFieldGuidetoTreesofNatal–ElsaPooley

Source:Plantzafrica.com&TwinstreamsNursery

nCt staff will, as far as possible, ensure that the members of the Co-operative conduct their tree farming operations on a sustainable basis (ecologically, economically and socially).

in order to achieve this nCt subscribes to the following principles:

• Compliancewithapplicablelawstimber growers should only establish plantations on land that has been granted a permit or that qualifies for afforestation and their operations should be conducted according to the laws of the land.

• Socialresponsibilitymembers will be encouraged to conduct their operations in such a manner as to create wealth for the communities in which they live. this will be achieved by using, wherever feasible, local labour and local processors. education and upliftment of labour will result in a contented, productive work force.

• CommunicationandeducationnCt will promote awareness of environmental issues and of new technologies to ensure that operations are conducted on a sustainable basis.

• Conservationall landowners should set aside areas worthy of conservation. this would include representative eco-systems, natural forests, refuges for rare and endangered species, wetlands and sites of archaeological, cultural or historic interest. biodiversity on farms will be encouraged at every opportunity.nCt recognises that its members’ operations

impact on the environment. these impacts will be kept to a minimum as far as it is reasonable.

• ResearchanddevelopmentnCt will support research and development to optimize the use of resources on a sustainable basis and to gain a better understanding of the impact of plantation forestry on the natural environment.

• Workandlivingenvironmentsthe Co-operative’s policy is that only the highest standards of occupational health and safety are acceptable. members will be encouraged to adopt this policy and also encouraged to provide an acceptable living environment for employees.

• AnnualreviewofPolicynCt supports the principles and Criteria of the Forest stewardship Council (FsC).

eNViroNmeNtAL poLiCy

N CT’S mission is to assist Members to achieve their full forestry potential and

thereby optimise financial returns on a sustained basis. In so doing, NCT also encourages its members to subscribe to its Environmental Policy based on the 10 principles and criteria of the Forest Stewardship Council (FSC).

24


’s

The Endangered Wildlife Trust’s Oribi Working Group (OWG) received

a R40 000 boost from NCT. The funds will go towards

the Oribi Custodian and Translocation programmes aimed at recognising those who support oribi conservation on their land and the relocation of the antelope respectively.

For landowners to become Oribi Custodians, they must have oribi on their property and must implement sound conservation a n d l a n d m a n a g e m e n t practices that encourage oribi populations to remain and increase in numbers. They should also adhere to principles of grassland conservation and make a positive contribution to oribi conservation, including maintaining a working relationship with the OWG.

Landowners interested in becoming involved in oribi conservation and who would like to know more about the Oribi Custodian Programme, should contact Kevin McCann at (033) 2632750 or [email protected]

or Cl i f f Walton at (033) 4131962 or c l i f [email protected].

NCT has been involved in the conservation of this endangered antelope since 2002 and plays an active role in ensuring that its Members are encouraged to preserve natural grassland habitats.

NCT’s Assistant General Manager, Rob Thompson (right) presents a cheque for R40 000 to Kevin McCann, Chairman of the Oribi

Working Group.

ORIBI GETS BOOST

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NCT Tree Farming (Pty) Ltd is a wholly-owned subsidiary of NCT Forestry Co-

operative Limited, formed in 1996 to manage the Co-operative’s own plantations and those of its Members who require this service.

NCT Members, who prefer not to manage their own plantations, are able to procure the management services and expertise of NCT Tree Farming. These services are tailored to suit each individual which includes:

Forward planning:• Annualplanofoperations• Budget• Forecasts• Benchmarkingofcosts

Effective,on-the-farmmanagement:• Silviculture• FireprotectionandFirefighting• Roadconstruction

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Full details on the management services are available from NCT Tree Farming (Pty) Ltd P O Box 1445, Pietermaritzburg 3200 Telephone: (033) 8978500

Fax: (033) 8978501 www.nctforest.com

get to know the foresters at nCt tree Farming who play a pivotal role in managing its farm schemes.

brett sCott is senior estate Forester based at Lidgetton. He manages six plantations in the area and is also the fire warden for the Lions river Fire

protection association.a former Cedara agricultural College graduate,

brett has 16 years experience in forestry. prior to joining nCt tree Farming, he spent 10 years with mondi Forests in the giant’s Castle area where he was involved in the establishment of pine plantations on newly purchased farms. He later transferred to the Creighton/ixopo area and then to richmond.

“working for nCt is a satisfying and rewarding experience,” says brett. He puts this down to nCt’s management style and its confidence in the forester to carry out all facets of timber farming such as silviculture, harvesting, fire protection and

• Environmentalactivities• Harvesting• Transport• Labourmatters• FSCcertificationsystems• Marketing of timber to our client’s best

advantage• Technologytransfer

Advancedfinancialandadministrationsystems:• Detailedmonthlyaccounts–debtorandcreditor

control• Submissionofallstatutoryreturnsandpayment

of VAT• Insurancevaluations• Monthlyreporting• Meetings/farmvisits• Clientsurveys• Newsletters/publications

maintenance. the day-to-day challenges of running more

than one farm and sourcing suitable contractors can prove to be stressful at times, but brett finds it extremely rewarding to see farms take shape under one’s management.

“nothing gives me more pleasure than driving around the farms and seeing the variety and abundance of fauna and flora on the plantations,” he continues.

brett can be commended for his conservation ethic. areas within the nCt-owned farm, ingwe, were recently recognised as sites of Conservation significance by ezemvelo kZn wildlife. the rare mist belt Themeda triandra grasslands and natural mist belt forests were some of the winning contributors for recognition of the farm he manages.

brett resides at ingwe with his family – wife, kerry and two daughters, Courtney (11) and deanne (9).

dubbed as an outdoors man, brett is a keen fisherman/hunter/sportsman.

NCt tree Farming (pty) Ltd


NCT HEaD OFFICE346 Burger Street • Pietermaritzburg 3201

PO Box 1445, Pietermaritzburg • 3200 South AfricaTel: (033) 897 8500 • Fax: (033) 897 8501

www.nctforest.comJustin James advertising•teeanem

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in this issue - nct forest 2006 sept.pdf · norman sibetha, a timber contractor based in hilton...

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