Silviculture contractors at work …. It’s a challenging environment for running a business!
Emerging forestry contractors in South Africa are in urgent need of support in order for them to make a go of their businesses. This theme became the centre of lively discussion at the SA Forestry Contractors’ Association AGM that was held at the Hilton Hotel in the KZN midlands recently.
Most of the members who attended the AGM were of the opinion that forestry contracting is an extremely tough business that requires a seasoned and experienced hand at the tiller in order to be successful. With the increasing mechanisation of forestry operations, contractors are more often than not required to borrow heavily from financial institutions in order to purchase the equipment required to fulfil their contractual obligations. This leaves them with little room for trial and error, and in the forestry environment there are so many variables at play that errors are going to be made.
Compounding the challenges that contractors face, many of the foresters appointed to ‘manage’ the contractors are themselves short on experience, and as a consequence they are unable to contribute to the solving of problems and are prone to make unreasonable demands on contractors at times.
By way of example – a contractor provides the costing for a weeding operation, based on a low level of weed infestation in a compartment. But the managing forester only gives the contractor the green light to commence the weeding operation several weeks or months later by which time the weeds are above waist high, and the original costing model is no longer adequate.
“Contractors are being set up to fail,” was a frequently heard refrain during the discussions at the AGM.
SAFCA’s new incoming CEO, Roger Johnston, himself an experienced forestry contractor, urged experienced contractors to reach out and provide emerging contractors with help, advice and support at every opportunity.
Contractor mentorship programme
A presentation at the AGM by Brad Shuttleworth of Forestry Solutions which focused on a contractor mentorship and support programme offered by his company, sparked the discussions that ensued.
Brad Shuttleworth of Forestry Solutions … offering a comprehensive contractor mentorship support programme.
“As part of the South African forestry companies’ Enterprise and Supplier Development programmes, their objective is to enhance supplier and beneficiary productivity and efficiencies in their operations. In many instances the companies identify and appoint contractors based on their own selection criteria,” said Brad.
“Once appointed the forestry contractors are expected to hit the ground running and frequently do not receive the support from the company foresters as, firstly, they are seen as independent contractors, or the company foresters do not have the time or in many instances the knowledge and expertise to mentor and assist their contractors in managing or developing their businesses.”
Brad said that experienced forestry consultants and contractors need to be mobilised as technical service providers to conduct business assessments and to provide management and operational mentorship to the identified forestry contractors.
Forestry Solutions offers a comprehensive and practical three-phase approach that covers a broad range of issues including general and legal compliance, safety, costing, risk assessments and operational planning, financial management, supervisor training, operational best practices, market linkages and expansion, continuous improvement and sustainability.
There followed some discussion among SAFCA members as to the best way to approach these challenges, and it was concluded that the association should engage with Forestry South Africa in an effort to get the forestry growers behind a contractor mentorship and support initiative.
Digitalisation of forestry operations
Muedanyi Ramantswana of Nelson Mandela University provided an overview of the forestry programmes offered at the university’s George campus. He also gave a presentation on the ‘digitilisation’ taking place in the forestry space, and demonstrated a software programme currently under development, called ForestTabs, that provides a digital platform for managing, monitoring and measuring silviculture operations.
Muedanyi Ramantswana is a Senior Lecturer and Forestry Programme Co-ordinator at Nelson Mandela University.
Finally, a presentation by Rikus Smith of Forestry & General Insurance Brokers provided useful insights into the nuts and bolts of ‘public liability’ and ‘spread of fire’ insurance required by forestry contractors.
FOCUS ON FORESTRY 2023
Simon Shackleton (left) of John Deere provides insight into the impressive JD eight-wheeled harvester that was on show at the field day. Operating the harvester for the demo was CMO’s mechanised harvesting instructor Gilbert Khumalo.
New forestry equipment, strategies & insights
The big international forestry brands plus local equipment manufacturers and service providers as well as mulchers, chippers and grinders made their presence felt at the Focus on Forestry 2023 event held in the picturesque KZN midlands in early November. Against the backdrop of the magnificent Karkloof mountains and surrounded by Sappi’s well kept gum and pine plantations, forestry stakeholders gathered from far and wide to see the latest equipment up close and gain some keen insights from dozens of presentations that covered just about every aspect of the forestry business.
There was also a lot of networking, socialising and catching up with old friends on the fringes of the conference, as there has been a long gap since the last Focus event that was held before COVID hit.
The overall message from the conference was that forestry businesses have and will continue to encounter hard times in the form of international trade disruptions, weak economic cycles, logistics bottlenecks, rising input costs, fires and extreme weather events, but at the end of the day forestry is part of the solution for many of the world’s biggest challenges and is on an upwards trajectory.
In his keynote address, Dr Ole Sand, Managing Partner of Criterion Africa Partners (CAP), which has invested millions of dollars in forestry businesses in sub-Saharan Africa, says forestry assets have been and are still undervalued. But the positive impacts forestry makes on the global climate balance, the protection of biodiversity, employment and infrastructure are in the early stages of being recognised, valued and monetized.
(Left to right) Mark Barnado, manager of Sappi’s KZN plantations, Dr Ole Sand of Criterion Africa Partners, who delivered the keynote address, and Michal Brink of CMO.
He said plantations constitute just 3% of global forest area, but account for 47% of global industrial roundwood supply, while natural forestry is already beyond capacity. The demand for industrial roundwood is expected to increase by 600 – 900 million m3 per year by 2050.
Africa is a continent where forestry plays a massive role in providing people with goods and services, but there is a critical need for more efficient and more sustainable management practices.
Population growth in Africa is driving wood demand and unsustainable forest use. The continent accounts for 20% of total global wood consumption and 36% of global fuelwood consumption. However much of Africa’s fuelwood production is unsustainable, said Dr Sand.
He said subsistence agriculture is the biggest driver of global deforestation. In Africa natural forests are harvested beyond capacity, and as a result deforestation and degradation is continuing.
“Fuelwood consumption with charcoal the driver will continue, while new plantation development that is taking place is insignificant.”
In this regard, he says that the private sector is doing a better job managing plantations than the state.
Dr Sand said that the CAP team believes there are only two solutions: scale up smallholder plantation development, and improve efficiencies in charcoal production.
He says the scarce resource in African forestry is knowhow and management capacity – not capital.
“When given the market opportunity, smallholders will respond,” he concluded.
Wayne le Roux of Hintech, proudly South African manufacturers of a range of grabs as well as the Urus cable yarding systems, loaders, loggers and shovel yarders.
Wood replacing fossil fuels
“Everything made from fossil fuels today can be made from a tree tomorrow,” said Brazilian forest engineer Marcos Wichert of Stora Enso.
Intensification of forest management is happening, producing more from less is the objective, while making forests more resilient by:-
• Reducing use of agro-chemicals • Improving soil health • Reducing CO2 emissions.
Forestry operations are developing fast with GPS devices on planting tubes and even spades to map each tree, AI thinning selectors on harvesters, remote machine operation and unmanned autonomous timber trucks.
And the new frontier, he suggests, is about gaining a better understanding of the role of beneficial microbes and fungi in the soil. At the end of the day growing anything - including trees – is all about soil health.
Empowering smallholders
Michal Brink of CMO endorsed Dr Sand’s opinion on the role of smallholder tree farmers.
“Future forestry expansion will be driven by smallholders, because the land belongs to communities,” said Michal.
The role of corporates is to serve as anchors to support and empower smallholders.
He says CMO is providing simple, affordable and scaleable solutions to enable smallholders to get their operations certified.
“Empowered smallholders are the vehicle to expansion of sustainable plantation forestry into the future,” he concluded.
ProMac is another proudly SA made logger manufactured in Richards Bay.
Resilient forestry
Independent forester Michael Henson talked about resilient forestry and the fact that reducing the risk of failure is much more than just about site and climate.
He said clones are “impressive when they work, and equally impressive when they fail”, and are a “roll of the dice” as they have a very restricted genetic base and carry a higher biosecurity risk than seeds which are genetically more diverse.
Nelly Ndlovu of Mondi Zimele spoke of the need to do more research into agro-forestry to help small-scale growers to improve their cashflow.
Bongiwe Mafuya of Emabhaceni Development and Nature Solutions described how clearing of alien vegetation in the Eastern Cape has created jobs and improved rangelands and agricultural fields. Further good news for the community is that since the alien plant removal, the local river is flowing freely again.
Philip Hall of Mbombela-based Forestry Plant & Equipment shows off the Summit grapple carriage for high productivity yarding. It even comes with a camera attached so the operator can follow the load safely to the landing.
FPA’s on the edge
Addressing the perennial topic of fires in forestry, Ian Henderson lamented the lack of support for FPAs from the Forestry Department and the fact that only 46% of state owned landholders are members of FPAs, while private sector membership is keeping many FPAs afloat. He suggested small FPAs should join forces to establish bigger, more viable FPAs.
Gideon van Lill of Amathole Forestry explained how they reduced fire damage in their Eastern Cape plantations from 5 894 ha burnt between 1999 to 2004 while it was under Safcol management– to 340 ha burnt between 2005 to 2023 while under Amathole Forests management. The key, he said, was meticulous, detailed risk assessment and a very focused and structured approach to risk reduction. Also improved, co-ordinated involvement of external role players.
Andre Scheepers from Anco Manufacturing displays the new bakkie-sakkie made in SA and equipped with a Husqvarna pump for powerful fast-action firefighting.
Andre Scheepers of Anco Manufacturing talks up the advantages of their 4000 litre high tech firefighting unit which comes complete with all the bells and whistles.
Side-view of the Anco firefighting unit.
PBS trucks
The sudden termination of the highly successful PBS truck pilot project by the Department of Transport in September 2023 - without giving any reasons - has put forestry logistics at the crossroads. The benefits of the PBS timber trucks to growers, to the economy, to the environment and to the safety of road users has been plain to see.
“With freight rail in South Africa failing us, the PBS trucks have saved our lives,” said Francois Oberholzer of Forestry South Africa.
He acknowledged that the ‘Pilot Project’ status of the PBS trucks had to end at some point, and is hopeful that the programme’s termination signalled that the PBS trucks would be absorbed into the legislation so that they can continue to improve the efficiency of road transport.
Francois said that 56% of conventional trucks currently operating on SA’s roads would not pass the PBS safety tests.
Loggers and loaders from Zululand-based Bell Equipment.
Rail
David Taylor of Tailor Rail company expressed his optimism that private sector participation in freight rail in South Africa is coming, but that the stakeholders need to move forward with extreme caution as there are multiple infrastructure and operational challenges.
By the way, 170 metres of cable theft takes place in SA every hour of every day. That is just one of the challenges that freight rail operators will face. Will we see the return of the green uniforms of the Railway Police?
One-pass harvesting
Andrew Cooper of Mondi explained their journey to single-pass harvesting. This has largely been achieved with extensive trial and error and working closely with the manufacturers of harvesting heads.
The aim is to reduce stem processing time, wear and tear on equipment, and stem damage. He reckons that two to four tons of fibre per hectare is lost from excessive stem damage during multiple-pass processing.
The trick is variable pressure control on the rollers which need to be finely tuned to the tree characteristics and conditions at the time of harvesting, coupled with fewer rollers and more knives.
The heads endorsed for one-pass harvesting are:- • SP 661E • Waratah H225E • Log Max E6 • Ponsse H7 Euca
Andrew said that the system balance is critical, and edge trees are a problem for one-pass harvesting.
“The journey to one-pass harvesting is very complicated and difficult to manage, but very worth it in the end,” he said.
Major learning: one size DOES NOT fit all.
Waratah head, mounted on a purpose-built John Deere harvester, is one of the iconic global brands.
New Ponsse head capable of rotating through 360 degrees with members of the local and international Ponsse support team (extreme right) Janne Tarvainen of Ponsse Finland, and second right Chris Odendaal of MTS Parts, principle Ponsse dealer in South Africa, based in Mbombela, Mpumalanga.
The Log Max 10000 XT head for extreme heavy duty logging, attached to a Tigercat tracked harvester, distributed and supported in South Africa by AfrEquip.
Biomass processing
Willem van der Merwe of Africa Biomass Company is a pioneer of chipping, mulching, grinding, shredding and billeting everything from post-harvest forestry slash to prunings, bush clearing and alien vegetation reduction in forestry and agriculture.
He says three hectares of cleared alien vegetation gains enough water savings to irrigate one ha of farmland.
Furthermore, 1.7 tons of good quality woodchips has the same energy value as one ton of coal, and reduces the carbon footprint by 95%.
He says markets for processed biomass material need to be found close by, on farms, in factories and in local small towns where more and more opportunities are opening up.
The big Bandit chipper, dubbed the ‘Beast’, reduced medium-sized pine logs to a neat pile of woodchips with effortless ease. It is operated by Africa Biomass Company.
This is the business end of the Bandit chipper …
SA manufactured Wuhlf 960-2 mulcher put through its paces at the field day by Grant Moodley.
Community-focused carbon project
Candice Taylor of the New Forests Company provided insights into a community-focused carbon project in Uganda which will provide small-scale growers with additional income from carbon credits earned in their operations. One of the objectives of the project is to encourage the small growers not to harvest their trees too early before they reach maturity, which is what they tend to do in an effort to boost their cashflow.
She said the project has taken three years to monetize, and will take five years to break even.
“Carbon shouldn’t be your side business – it should be a part of your core business,” she said.
And finally a word of advice: beware of the ‘carbon cowboys’ … so-called expert consultants who charge a fortune when you can do it yourself with a bit of effort. It’s complex, but it’s not rocket science.
Fanie Viljoen (left) and Jacques van der Watt of George-based Novelquip Forestry with one of their pitting attachments.
Jody Ivins of KZN midlands-based LP Engineering with one of their grabs … they also support Ponsse harvesting equipment in the Midlands.
SA made Wuhlf mulcher put through its paces
The Wuhlf 960-2 wheeled mulcher is designed and manufactured in South Africa for African conditions.
The Wuhlf team put their big Wuhlf 960-2 wheeled mulcher through its paces at York’s Jessievale plantation in Mpumalanga in late October under close scrutiny from York’s forestry team as well as Brad Shuttleworth of Forestry Solutions, who was there to do a detailed productivity study to gauge its performance.
The Wuhlf 960-2 wheeled mulcher is a 276kW machine designed and manufactured by Pretoria-based Wuhlf Equipment. According to the Wuhlf team it compares favourably with any of the imported mulchers in terms of durability, reliability and productivity, with an additional advantage: It is designed and manufactured in SA specifically to suit conditions in Africa, so the purchase price is significantly cheaper than comparative imported machines while the spares, maintenance and technical skills required to keep it working productively are available on our doorstep. Electronics on the mulcher are kept to a minimum and there is no high-tech computer gadgetry requiring specialised skills to maintain. The machine can be repaired and serviced by any qualified hydraulic and diesel mechanics.
This compartment has been mulched clean after clear felling, and is ready for the planting operation to follow.
The Jessievale trials saw the mulcher clean up the stumps and slash left behind four months after clearfelling 20-25 year old Pinus patula grown for sawlogs. The slash conditions were ranked in three classes for purposes of the trial: Light slash; Medium; and Difficult (with big branches, stumps & high slash piles):-
Pass length
Light
Medium
Difficult
100 m
2.0 hrs/ha
2.6 hrs/ha
3.5 hrs/ha
200 m
1.8 hrs/ha
2.4 hrs/ha
3.3 hrs/ha
300 m
1.7 hrs/ha
2.3 hrs/ha
3.2 hrs/ha
Above is a quick snapshot of the time trial results. Note that the shorter the pass length the more time it takes to mulch a hectare due to the increased number of turns that the machine has to make. Also note that Brad said that the mulcher operator used in the trial was relatively inexperienced, and he would expect that a more experienced operator would improve productivity by 10-15%.
The Wuhlf mulcher busy mulching the post-harvest slash.
The aim of the mulching operation is to reduce the slash and stumps to a mulch blanket which covers the soil and protects it from erosion and moisture loss, while providing easy access for the pitting and planting operations to follow. Mulching also eliminates the need for a controlled burn of the slash which carries a fire risk and can damage the soil.
According to Wuhlf Sales Executive Grant Moodley, the 960-2 performed well at Jessievale and the York team were suitably impressed. It was trialled on compartments with light, medium and heavy slash to properly gauge its performance under different conditions.
Wuhlf started designing and building mulchers in 2013 and have a number of different machines in production including a T90 tracked mulcher for use in under-canopy mulching, a 930 (129 kW) medium size wheeled mulcher and the big 960-2 wheeled machine.
These stumps have been reduced to ground level.
The mulcher heads, canopies, hydraulic pipes and brackets etc are manufactured in-house, the Danfoss hydraulic pumps are sourced from a local manufacturer, while the chassis, wheels, gearbox, diffs and engine are imported. The machines are assembled in the Wuhlf manufacturing facility in Pretoria. The mulchers come with a 12 month/1 000 hours warranty, with more extended warranty options available.
The Wuhlf mulchers will be on show at the Focus on Forestry Conference taking place in Karkloof in the KZN midlands from 7-9 November, so go along to meet the team and see the mulchers in the flesh.
Lüneberg farmer bags 2023 Kwanalu young farmer title
Lüneberg timber, maize, soy bean and free range cattle farmer, Heiko Gevers is the 2023 KwaZulu-Natal Agricultural Union (Kwanalu) Young Farmer of the Year. Gevers’ remarkable precision, keen eye for maximizing profitability, and unwavering commitment to community development captured the judges' attention.
“Each year, we're inspired by the fresh approach of a new generation of farmers who blend innovation with tried-and-true farming practices to create resilient businesses in the face of industry challenges,” said Kwanalu CEO, Sandy La Marque.
Gevers (28) stood out for his organised, systematic and detail-oriented approach to farming. As the farm manager on his parents' farm, he has implemented precise farming practices, ensuring economic sustainability and optimal yields.
“Proper attention and meticulous record-keeping are paramount in our business. Spreadsheets are my trusted companions, used for everything from grazing schedules to rotation planning and chemical usage,” said Gevers, sharing his approach.
The Toyota/Kwanalu Young Farmer of the Year 2023 competition is open to farmers under the age of 40, male or female who are full members of their provinces agricultural unions. Judges evaluate applicants at the provincial level, assessing various aspects of their business, including their vision for the farm's future and their practical application of management philosophy.
Using his business acumen and innovative mindset, Gevers is continuously exploring ways to adapt operations to enhance profit margins and ensure long-term economic sustainability.
“I'm always on the lookout for innovative ways to refine our product for the market and exploring new crops that could be a lucrative commodity. If we expand the business, we can create more job opportunities for our local community,” said Gevers.
Gevers' deep compassion shines through his commitment to the people reliant on the farm. He consistently initiates community upliftment projects, assists local residents in planting maize, and supports the local school with various needs, including levelling of the soccer field and constructing goalposts.
“Heiko's genuine care for people and the farm is evident in everything he does. He embodies the spirit of innovation, community support, and sustainable farming that the KZN Kwanalu Young Farmer of the Year represents, making him a true champion for the agricultural industry,” says La Marque.
“As farmers, we are constantly surviving new challenges; whether environmental, economic or political. But we are united in that we are aligned to a common goal, providing for the nation. It is of the utmost importance to have good working relationships with neighbours and the community to ensure a long-term farming future. At the end of the day, we have to look after one another,” said Gevers.
The KwaZulu-Natal Agricultural Union, Kwanalu, is a representative organization voice of the rural and agricultural sectors in the province. It’s viewpoints are based on submissions from its members and it is committed to a sustainable and profitable future for Agriculture within KwaZulu-Natal and the greater South Africa.
For more information on Kwanalu, visit www.kwanalu.co.za or call 033 342 9393.
Natural forests combat non-native tree invasions
The native biodiversity of natural forest patches like this one in the foreground play a crucial role in buffering against invasions by non-native plants and trees, while the non-native eucalypt plantation in the background provides the timber resource for countless products. Good land management is required to ensure that the non-native eucalypts fulfil their function, while the natural forest, which harbours the biodiversity that underpins a healthy landscape, needs to be carefully protected.
A new study, published recently in Nature, has found that the native biodiversity of natural forests largely buffers the severity of non-native tree invasions.
The bad news, however, is that humans remain mostly responsible for introducing non-native tree species to an area in the first place – either intentionally or accidentally.
These are two of the key findings from a global study to determine the relative importance of human activity, environmental conditions, and biological diversity as drivers of tree invasions worldwide. The study, titled “Native diversity buffers against severity of non-native tree invasions” was published in the journal Nature on Wednesday, 23 August 2023.
This is because of their size, long life span and important role in forestry, foraging, city landscaping and reforestation, as well as carbon sequestration and climate regulation. Yet invasion biologists have long been struggling to identify the ecological mechanisms driving the invasion success of a small portion of non-native tree species.
Their findings support the biotic resistance hypothesis, which holds that greater diversity in the native community will fill the ecological niches and reduce available resources, thereby limiting non-native species to take up niche spaces.
The prominent role of human activities, however, came as a surprise: “Our findings suggest that human activity may overwhelm ecological drivers of invasions and even reduce the influence of ecological processes,” he warns.
Three of the most frequent non-native trees in the GFBI database (left to right) Black Locust; Osage orange; Tree of Heaven (Photos courtesy iNaturalist, Dave Richardson, Rosario, and Gehardt).
Repeated human introductions of plant species, especially close to ports and airports, play an important role in the initial introduction process. The severity of the invasion, however, is predominantly a result of the intrinsic diversity of the native community.
It is therefore important to conserve natural forests to maintain high native tree diversity, they write in the paper.
Furthermore, because many tree species are introduced purposefully for forestry or to support local livelihoods, they recommend that local stakeholders are included when making decisions about how best to benefit from these managed forests.
Some of the other findings include:
The most frequent non-native trees in the GFBI database are Black Locust (Robinia pseudoacacia), Scots pine (Pinus sylvestris), Osage orange (Maclura pomifera), Norway spruce (Picea Abies) and Tree of Heaven (Ailanthus altissima).
The regions with the greatest likelihood of being invaded are North America, Europe and East Asia.
In environments experiencing cold or hot temperature extremes, the non-native trees were more similar to the native community.
Moderate environments allowed a wider range of species to survive.
To order your copy of the iconic SA Forestry 2024 desktop calendar, send a request by email to:- chris@saforestryonline.co.za
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• 12 months: January – December 2024 • Stats about forestry in South Africa • Fire Danger Index • FPA contact details • Forestry Directory • Useful forestry info, including:- Conversion tables Moisture loss calculator Slope & gradient Planting spacement Thinning regimes
Forest Sector making progress in meeting transformation targets
Khosi Mavimbela, Executive Director of the Forest Sector Charter Council with Michael Peter, Executive Director of Forestry South Africa.
The good news is that the Forest Sector has improved its overall B-BBEE rating from Level 4 to Level 3, demonstrating progress towards achieving transformation targets. Furthermore, there has been an encouraging improvement in the number of enterprises that submitted their B-BBEE Reports to the Forest Sector Charter Council – from 113 in 2021/22 to 192 during the 2022/23 financial year.
While these trends reflect the progress that the forest sector is making towards achieving transformation targets, it must be said that the number of enterprises submitting their B-BBEE Reports is still fairly low relative to the number of enterprises that are active in the sector.
This is the case despite the fact that annual reporting of transformation performance for all large, medium, small and even micro-enterprises is required in terms of the amended B-BBEE Act.
The Forest Sector Charter Council (FSCC), which is charged with monitoring and reporting on the sector’s progress in achieving the B-BBEE targets, has been one of the most consistent and diligent charter councils in the country when it comes to annual reporting of the state of transformation in the sector. The FSCC team has also engaged with business associations and business owners in an effort to encourage them to submit their B-BBEE reports.
In any event it is pleasing to note that the biggest companies in the sector that are engaged in forestry and processing of wood and/or fibre are reporting regularly. These companies together represent a large chunk of the sector’s turnover, so their participation is crucial to the sector’s contribution to transformation.
It is safe to say that in general, it appears that the most transformed enterprises make up the bulk of enterprises submitting their reports as they are able to demonstrate good progress towards achieving the B-BBEE targets. This observation is borne out by the fact that the majority of Qualifying Small Enterprises (QSEs) and Exempted Micro-Enterprises (EMEs) submitting Reports were ‘Enhanced’, meaning that they have between 50% and 100% black ownership and thus automatically achieve Level 1 or Level 2 B-BBEE rating.
A number of commentators have pointed out that many enterprises in the sector are currently in ‘survival’ mode due to the impacts of Covid-19, load-shedding and a generally depressed economy, and so resources are stretched. As a consequence transformation efforts may be taking a back seat to more pressing issues. This is true of many other sectors in South Africa as well.
A negative attitude towards BEE among some business owners may also be a factor in low reporting levels. The poor performance of government in terms of service delivery and the decline of state owned enterprises adds fuel to this viewpoint.
The number of enterprises that submitted valid B-BBEE reports to the FSCC by forestry sub-sector in the 2022/3 financial year was as follows:-
FORESTRY SUB-SECTOR
B-BBEE REPORTS SUBMITTED
Contractors
132
Sawmillers
22
Pole producers
12
Growers
8
Fibre processors
10
Charcoal producers
9
Forestry contractors are the most diligent sub-sector when it comes to transformation, with 132 enterprises reporting.
The very low number of growers reporting is disappointing. There are around 1 300 medium size growers active in SA and one would expect more to be reporting their transformation status. In mitigation many of these growers are also involved in agriculture and may be reporting under the Agri Charter.
The 10 fibre processors that submitted their reports probably constitute most of the enterprises active in this sub-sector in SA.
The number of charcoal and pole producers that reported is also disappointing.
Forest Sector Highlights
Here are some highlights from the latest Annual Status of Transformation in the Forest Sector Report worth noting:-
• Medium and Large Enterprises (MLEs) recorded ‘remarkable’ scores in Socio-Economic Development, Enterprise & Supplier Development, Ownership and Skills Development. • MLEs achieved an average score of 50% of target in the Management Control element for the first time. • QSE Reports were received from only four of the six sub-sectors: Contractors - 58, Sawmillers – 6, Pole producers – 2, Fibre producers – 1; and zero from Growers and Charcoal producers. Nevertheless QSE’s performed well maintaining a Level 2 B-BBEE rating. • The state-owned forestry company Safcol recorded a big B-BBEE rating improvement, jumping from Level 4 last year to Level 2. • EMEs are exempted from compliance with the scorecard (they are only required to submit affidavits and/or their CIPC certificates). EME’s achieve an automatic level 4 if unenhanced (below 50% black ownership), while enhanced EMEs with 50-100% black ownership achieve Level 1 or Level 2. It’s no surprise that most of the EMEs that reported are Enhanced.
Commented Makhosazana Mavimbela, Executive Director of the Forest Sector Charter Council: "We are extremely thrilled to have achieved a level 3 B-BBEE rating with improvement also in the number of reporting entities. This performance should no doubt be an escalator for continuous improvements, reliable reporting and impactful B-BBEE implementation in the Forest Sector.
“As a sector, our new approach - besides celebrating this milestone - should be to have all reporting entities in the forest sector reporting annually and gradually elevating our reporting to a point where we are able to fully demonstrate the sector's performance and commitment to the principles and objectives of B-BBEE.”
Commented Forestry South Africa’s Ronald Heath: “We are delighted that the industry has achieved Level 3 status for the first time since the B-BBEE Act was introduced. This demonstrates objectively the progress that has been made in the transformation of the Sector. The achievement is all the more encouraging given the very challenging years which the Sector and the country have endured. It is positive to note the number of reporting entities has grown more than five times over the last three years.”
SA Inc. transformation scorecard
How does the Forest Sector stack up against the rest of South Africa when it comes to transformation?
According to Sanlam’s Transformation Gauge Report released in July this year, South Africa Inc. achieved a combined B-BBEE score of Level 3, showing an improvement in all the scorecard elements over previous years. This matches the Forest Sector’s overall Level 3.
“But there is still a long way to go,” cautions the Gauge Report.
It cites the Ownership element by way of example: SA has achieved 80.8% of the target, which is 25% voting rights in a company for black people. “Is this a good achievement after 30 years of democracy?”
The Gauge Report notes that the worst performing scorecard element in all sectors remains Management Control, achieving 69% of target, up from 56% last year.
The Report notes further that government is pushing through a raft of legislation aimed at forcing compliance with its transformation objectives, particularly from companies that want to do business with government entities. Examples of this are the Employment Equity Amendment Act of 2020 and the Draft Public Procurement Bill. While closer to home the Department of Water Affairs & Sanitation has gazetted draft regulations stipulating that water use licences will only be granted to companies with at least 75% black equity ownership.
The Report notes that government appears to be busy “re-calibrating the balance between incentives and penalties to drive compliance with B-BBEE.”
Unlocking economic development
The rationale behind government’s transformation objectives is to accelerate the entry and development of previously disadvantaged people into the mainstream economy (women and people with disabilities are included in these empowerment imperatives.). This is necessary due to the fact that under previous regimes people of colour were denied opportunities and deliberately excluded from participation in the mainstream economy. Since the advent of democracy in South Africa in 1994, government has moved to reverse the negative impacts of apartheid through its B-BBEE policies.
The thrust is broad-based black empowerment – it is not just about ownership, but includes skills development, supplier development, socio-economic development and management control. This approach is designed to broaden the impacts of empowerment, to reward empowerment efforts of enterprises across a broad front, and to accommodate a diversity of business ownership structures in the transformation journey.
If implemented effectively, it will serve as a boost for the whole South African economy by unlocking the skills and talents of all of its people, and is also critical to the creation of a stable, productive and harmonious society that has been historically skewed by apartheid.
The Forest Sector also stands to gain much from effective transformation, and all enterprises engaged in forest sector business are encouraged to participate. Submitting B-BBEE reports to the Forest Sector Charter Council is not only a legal imperative, it is also a good place to start on the transformation journey.
Reporting is not difficult. It does require a bit of admin, but any business owner who has a good handle on his or her own business should have little trouble reporting against the five scorecard elements. Exempted micro-enterprises with a turnover less than R10 million a year only need to submit affidavits and/or their CIPC certificates to the FSCC to comply.
Effective transformation is therefore central to the South African Forest Sector’s sustainability, and it needs to make a positive impact in the boardroom and on the ground!
For more detailed info on the Forest Sector’s transformation journey, see the following reports:
There is a lot of carbon locked up in the growing trees and roots as well as the harvested logs, and even the harvest residue lying in-field. Emissions generated during the harvesting operation and the burning off of harvest residue will be off-set against the carbon locked up in the wood to calculate the carbon balance.
Plantation owners in South Africa with more than 100 ha of trees in the ground are required to report their carbon emissions on an annual basis, in terms of Greenhouse Gas regulations gazetted in 2017.
This requirement is likely to send a shiver down the spines of tree farmers, who are already burdened with dozens of laws and regulations requiring their attention and compliance. More red tape, more admin … and calculating carbon balance is a daunting prospect as it is not something they learned in forestry school. This is why only a few big plantation owners in South Africa are currently reporting their carbon emissions, while the majority of growers have not yet complied with the GHG reporting regulations.
And don’t for a moment think that you can bury your head in the sand and wait for the carbon reporting thing to go away. It won’t! It is going to become a bigger issue going forward all around the world as greenhouse gas emitters come under increasing pressure. They will be taxed, punished and eventually shut out of international markets.
But fear not! The Sustainable African Forestry Assurance Scheme (SAFAS), in collaboration with the Paper Manufacturers’ Association of South Africa (PAMSA) and the Department of Forestry Fisheries & Environment (DFFE), has unpicked the knot and developed a protocol to make carbon reporting for plantation owners do-able, effective and relatively simple.
“But forestry is sustainable, renewable, it sequesters carbon out of the atmosphere and stores it in the wood, and so why do we now have to jump through these carbon reporting hoops?” I hear you cry.
Exactly! Forestry is located on the positive side of the carbon equation and this is going to become a massive advantage for this sector going forward. But first we have to monitor our emissions, calculate our carbon balance, so that we can access those advantages and reap the full benefits of growing trees. This process is going to become a way of life for foresters.
Sappi mill ...one of the key aims of the SAFAS protocol is to enable wood processors to offset the carbon locked up in third party timber against their carbon tax.
Dave Everard, chair of the SAFAS Council and former Group Environmental Manager at Sappi Forests, has been involved in the development of the SAFAS carbon reporting protocol. He gave a very succinct presentation at the recent SA Institute of Forestry AGM on the ‘why’ and ‘how’ of carbon reporting.
Some background: PAMSA approached the SAFAS team a few years back with a request to develop a carbon reporting protocol for forest owners that is accurate and verifiable. PAMSA’s motivation is to enable wood processors (pulp mills, sawmills etc) who are required by law to pay a carbon tax, to offset the carbon stored in the timber they use as raw material. Currently processors can only offset the carbon sequestered in their own timber that they grow themselves on their own farms. As it stands now, mills cannot offset the sequestered carbon contained in third party timber that they buy in, and over which they do not have operational control.
Why? Because there are concerns around the chain-of-custody and how to verify the carbon claims of third party growers. This is a big problem for the processors who must procure timber from outside of their own business to keep their mills running. It’s going to get costly.
It’s also a big problem from the point of view of plantation owners who may experience declining demand for their timber as a consequence.
The SAFAS carbon reporting protocol is therefore designed to not only facilitate accurate, do-able carbon reporting for timber growers, it must also be verifiable so that it can be endorsed by the tax authorities. The first part has been achieved – the protocol is up and running and the system has been tested (and verified) on 20 farms in a pilot study.
According to Dave the SAFAS protocol is currently being presented to Treasury and is awaiting their approval to allow third party timber to be included in the carbon tax calculations of processing mills. The protocol has been developed in close collaboration with DFFE, so Dave is confident that this endorsement will be forthcoming.
Dave described a simple five-step process that growers can follow to achieve carbon reporting compliance.
Step 1 The grower registers on the SAFAS Value-Based Platform (VBP), provides some simple data on their tree growing operations including info about tree species, MAIs, stems per hectare, age distribution and utilisable standing timber. The Carbon reporting tool on the VBP provides estimates of the volume of leaves and branches, litter layer, root volume and harvest residues required for the stock calculations. The grower must also indicate whether they burned their residues, used fertiliser or had any wildfires so that emissions can be calculated.
Step 2 The Platform calculates the carbon stored in the plantation based on the info provided, utilising global carbon ratios (Tier 1), South Africa generic ratios (Tier 2) or compartment specific data if this is available (Tier 3). This calculation determines the carbon stock of the plantation for that year. Note that the carbon stored in harvested timber sold to the mill is not included in the total carbon stock. Carbon stocks less emissions gives you the carbon balance. The carbon balance from the current year less the carbon balance from the previous year indicates whether the plantation has sequestered carbon (carbon positive) or has maintained the stored carbon (carbon neutral) or has lost some carbon (carbon negative).
Step 3 Verification of the carbon stocks and emissions on the plantation during the protocol will be done by SAFAS. Note that DFFE may require some of the submissions to be independently verified by an accredited verifier, but this is post reporting and outside of the protocol. The protocol makes this verification process a simple procedure for the grower.
Step 4 The grower receives a report and signs off if he/she is happy with the calculation.
Step 5 The SAFAS VBP transfers the carbon data to the official carbon reporting platform, SAGERS, and the carbon reporting process is completed.
This process needs to be done annually. Most of the information required for Step 1 is the kind of info that a forestry manager would have recoded in the normal course of business, said Dave. It is required for FSC or PEFC certification purposes anyway.
This process not only enables the forest owner to comply with current carbon reporting regulations, it also serves as a useful management tool for the responsible farmer who wants to reduce GHG emissions going forward.
Once Treasury has endorsed the protocol and the carbon sequestered in third party timber can be verified and offset against mill owners’ carbon tax, the grower’s timber becomes more valuable as a feedstock.
Dave concluded his presentation with the following points:-
• Carbon reporting will become a requirement for forest certification, both FSC and PEFC. • The forestry sector’s role in the carbon issue should be seen as an advantage. • Forestry has a legal and socio-economic obligation to report and manage GHG emissions. • Carbon reporting is likely to become a pre-requisite for accessing many markets, both local and international. • The SAFAS protocol has been piloted with 20 farms supplying Sappi, Mondi and NCT, and the system works! • The SAFAS Value Based Platform offers many other benefits to growers, including risk assessments that address sustainability issues as well as a pathway to certification.
Dave Everard … in the field.
NCT’s small scale tree farmer of the year
Vikesh from Pmb Power Products presents Sydney with a brand new STIHL chainsaw.
Sydney Qedumona Hlanguza from the Umvoti tribal area has been nominated by the NCT Forestry team as their Small Scale Tree Farmer of the Year for 2023.
This is a prestigious award presented annually to tree farmers who display excellence in the management of their plantations grown on tribal land.
After spending 20 years working in the formal sector, first as a teacher and then with Old Mutual’s sales division, Sydney returned to his traditional home in Ntembisweni in the Umvoto tribal area where he bought a plot situated adjacent to his family’s ancestral land.
Evidence of Sydney’s excellent forestry operations with effective weeding around newly planted tree seedlings.
Initially he managed a small rural trading store but was eventually persuaded to try his hand at forestry, initially planting wattle on his land from seed acquired from NTE.
By the time those first trees reached maturity, Sydney had made contact with NCT’s Greytown District Manager, Cliff Walton, who helped him find a market for the timber.
This was the start of a long-standing relationship between Sydney and NCT, with Sydney becoming a member of the co-op in 2010.
Sydney continued to plant wattle on his land, and now also manages the wattle plantations on the adjoining land owned by his two brothers. He has a total of three hectares of wattle under his management.
Sydney’s three hectares planted with wattle.
Sydney has been instrumental in assisting the foresters from NCT and NTE to roll out Project Wattle Regen in the Umvoti tribal areas, which aims to support the small-scale growers to improve their productivity, and expand the areas planted to wattle.
Black wattle (Acacia mearnsii) is an ideal tree crop well suited to local conditions, and with ready markets nearby.
Most of the wattle timber grown in this area is marketed through NCT which has chipping and export facilities at the nearby port of Richards Bay. The wattle bark is marketed through NTE which has a factory near Greytown that turns freshly harvested wattle bark into tannin and adhesives, destined mainly for the export market. Wattle timber not marketed through NCT is also widely used by locals in many applications such as fencing posts and building material.
Young wattle seedlings are planted in a fenced enclosure to protect them from being trampled by cattle.
Sydney shared some of the many challenges he faces daily. Goats, cattle, and duiker breaking through his fences and seedlings being removed shortly after planting. Fire also is a constant threat and part of his management plan is making sure that he has good firebreaks during the winter months. He deals with challenges faced proactively and responds tactfully. He allows neighbours to collect firewood on his property in a controlled manner, this way he gains allies rather than enemies.
In addition to his forestry business, Sydney also runs a small side-business selling gas refills, lectures in Theology at a local Bible college, and is a speed-walking champion for good measure.
Sydney is a proud father of seven children. His older children are all in successful careers while he is still responsible for his last two who are both training to be teachers. Sydney’s wife works for the University of KwaZulu-Natal as an admin clerk.
He is a humble person who is always open to learning and improving. He considers himself a “student of life” and is always ready to take advice from people who know more about something than himself.
Sydney’s fire breaks – fire is a constant threat, especially in the dry winter months.
Conserving soil health for future generations
Terry Wolhuter receiving his prize – a brand new chainsaw – from Hayden Hutton of Stihl.
Terry and Belinda Wolhuter of 92 Farming (Pty) Ltd are NCT’s Commercial Tree Farmers of the Year for 2023.
Terry is the sixth generation of the Wolhuter family farming on Eiland Spruit Farm in New Hanover in the KZN midlands. The farm was established in 1851 by Mathys Wolhuter, and was historically utilised for raising cattle while crops were cultivated in the flatter areas.
It was Terry’s father, Peter Wolhuter, who started growing wattle on the steeper areas of the farm with sugar planted on the flatter areas.
The farm is 500ha in size and is currently planted with 250ha of sugar cane, 110ha of Acacia and 40ha of Eucalyptus. The remaining hectares are managed as open areas, valleys and waterways which are well maintained with seasonal work being done to ensure alien invasives are eradicated.
All timber compartments are being re-established along the contours to prevent soil erosion.
Terry is very aware of his responsibility as the custodian of the land and the importance of ensuring the viability of the farming operation for the next generation, so conservation of the natural resources - especially the soil - is of fundamental importance to his operational planning. Hence the move to ‘regenerative agriculture’. All timber compartments that are harvested are being re-established along the contours; cool burns are practiced to reduce the harvesting residues. This is only done when the weather conditions are conducive to a cool burn, and after the local community has removed firewood from the harvest sites.
Pesticide usage is kept to a minimum and weed control is done by means of line hoeing followed by a modified slasher that uses chains instead of blades. This creates a mulch in the inter-row that conserves moisture, reduces weed germination and protects the soil from sun, wind and heavy rain storm events. Terry uses his Nguni cattle to graze under the canopy thus reducing the fuel load for fire protection, and promoting weed control.
The farm’s neighbours are corporate timber growers and NCT commercial timber growers.
Regenerative agriculture in the sugar cane blocks is done by planting the fields due for re-establishment with a cover crop seed mix that includes Japanese Radish, Stooling Rye, Fescue grass and Oats. The resultant crop is used for grazing by the Ngunis – the manure they leave behind is a bonus for the soil. After this operation, maize is planted that is either sold or used for feed.
Terry is discovering the benefits of leaving a two-year fallow period between sugar cane crops which he says increases the microbial activity in the soil and results in improved growth when the sugar cane is replanted. Due to the current situation with more sugar cane being carried over than usual, Terry is feeding this to the Ngunis so these blocks are receiving an addition bonus of manure before the sugar cane ratoons or is planted with the cover crop.
Green wattle (Acacia decurrens) stand sown with the specially designed seeder.
Terry’s passion for his farm doesn’t stop at his adoption of regenerative agricultural operations. Innovation is what has assisted Terry in the timber operation, with the creation of a unique wattle seeder as well as a modified ripper with a duck’s foot that has improved stand survival and uniformity.
The wattle seeder, built by Terry’s mechanic Tewis, has reduced the quantity of seed used per hectare and created a uniform dense hedge of young wattle seedlings that are thinned 12 to 18 months after sowing to 2 500 SPHA and then down to 1 800 SPHA at 24 months. Where site conditions allow, conventional Acacia mearnsii (Black Wattle) seedlings are planted. This is where Terry’s ripper and duck’s foot combination comes to the fore. This piece of equipment creates a rip line, and the seedlings are planted into it after is has been marked to the correct espacement. The addition of the duck’s foot behind the ripper’s tine shatters the soil underneath the surface, while the suspended weight automatically closes up the rip line ensuring that soil moisture is not lost due to drying out. This replaces the conventional pit planting system.
Being a sugar cane grower and owning an earth moving business specialising in cane contouring and water way construction, Terry knows the importance of a well-maintained road infrastructure. All the main access roads throughout the farm are gravelled. Contour roads and water ways are all grassed to prevent erosion. Stream crossings are constructed with pipes and concrete so vehicles can cross easily and silting up of the streams is prevented.
A composting operation on the farm reduces the need to purchase synthetic fertilizers to boost growth of the sugar cane crops. Compost is made from a mixture of cane tops, Mila sourced from the local cane mill and chicken litter. The ingredients are mixed and left to break down into a healthy compost that enriches the soil and boosts growth.
The composting operation reduces the need to use synthetic fertiliser, and is central to the regenerative agriculture approach.
Social responsibilities are as important as any other operation on the farm, and apart from assisting with firewood, Terry has loaned TLBs to the community and sponsored a local soccer team.
Terry he attributes the success of the farm to everyone working together, and he says it wouldn’t be the success that it is without the assistance of his wife, Belinda, especially when it comes to all the admin work.
Responsible pesticide use is essential … all pesticides are locked safely away when not in use.
