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Forestry and Related Services Industry in South Africa 2024

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    Report

  • 89 Pages
  • February 2024
  • Region: South Africa
  • Who Owns Whom
  • ID: 5146158

Sales of some forestry products in South Africa are on an upward trend, largely due to increasing exports. In 2023, the value of exported forestry products reduced.

The forestry and sawmilling industries face challenges, including the rail and ports crisis, inconsistent electricity supply, high input costs, reduced local demand for timber, and a shortage of roundwood. Well-known companies involved in the forestry and sawmilling industries include Mondi South Africa and Sappi Southern Africa.

Key Market Trends

  • An increasing number of small-scale and community forestry schemes are being certified by the Forest Stewardship Council.
  • The proliferation of informal sawmills.
  • The use of timber in building construction is increasing.

Market Opportunities

  • Plans by the state to allow private companies to establish plantations on 22,000ha in the Western Cape.

Challenges

  • High input costs.
  • Inconsistent electricity supply.
  • Reduced local demand for timber.
  • Shortage of roundwood.
  • Underperformance by Transnet’s rail and port operations.

Market Outlook

  • The World Bank expects log prices to rise in 2024 and 2025.
  • Companies expect strained local demand for forestry products in 2024 as disposable income remains low and trading conditions in the agricultural, industrial and mining industries continue to be tough.
  • In the medium to long term, local demand is forecast to increase with greater use of timber in building construction.
  • South African exporters should benefit from the expected increase in global prices.

This report on the forestry industry and related services, such as sawmilling, includes information on the location, size and state of the industry, production, income and trade. There is information on notable players and corporate actions, opportunities for SMEs and influencing factors such as the economic environment, rail and port issues and inconsistent electricity supply.

Profiles of 18 companies include major players such as Sappi and Mondi, and well-known companies including the NCT Forestry Agricultural Co-operative, Lion Match, York Timbers, PG Bison and Merensky Timber.

Table of Contents


1.      INTRODUCTION
2.      DESCRIPTION OF THE INDUSTRY
2.1.   Industry Value Chain
2.2.   Geographic Position
2.3.   Size of the Industry

3.      LOCAL
3.1.   State of the Industry
3.2.   Key Trends
3.3.   Key Issues
3.4.   Notable Players
3.5.   Trade
3.6.   Corporate Actions
3.7.   Regulations
3.8.   Enterprise Development and Social Development

4.       AFRICA5.       INTERNATIONAL
6.       INFLUENCING FACTORS
6.1.    Economic Environment
6.2.    Rail and Port Issues
6.3.    Unforeseen Events
6.4.    Inconsistent Electricity Supply
6.5.    Input Costs
6.6.    Labour
6.7.    Environmental Issues
6.8.    Technology, R&D and Innovation
6.9.    Government Support

7.       COMPETITIVE ENVIRONMENT
7.1.    Competition
7.2.    Ownership Structure of the Industry
7.3.    Barriers to Entry

8.       INDUSTRY SUMMARY9.       OUTLOOK10.     INDUSTRY ASSOCIATIONS
11.     REFERENCES
11.1.  Publications
11.2.  Websites

ANNEXURE 1: Industry LegislationAPPENDIX 1: Summary of Notable Players
COMPANY PROFILES
  • Amathole Forestry Company (Pty) Ltd
  • Bracken Timbers (Pty) Ltd
  • C J Rance (Pty) Ltd
  • Duva Timbers (Pty) Ltd
  • Lion Match Forestry (Pty) Ltd
  • Merensky Timber (Pty) Ltd
  • Mondi South Africa (Pty) Ltd
  • MTO Forestry (Pty) Ltd
  • NCT Forestry Agricultural Co-Operative Limited Primary Co-Operative
  • PG Bison (Pty) Ltd
  • R and B Timbers (Pty) Ltd
  • Sappi Ltd
  • Singisi Forest Products (Pty) Ltd
  • South African Forestry Company SOC Ltd
  • Surejoy Industries (Pty) Ltd
  • TWK Investments Ltd
  • U C L Company (Pty) Ltd
  • York Timber Holdings Ltd

Companies Mentioned

  • Amathole Forestry Company (Pty) Ltd    
  • Bracken Timbers (Pty) Ltd    
  • C J Rance (Pty) Ltd    
  • Duva Timbers (Pty) Ltd    
  • Lion Match Forestry (Pty) Ltd    
  • Merensky Timber (Pty) Ltd    
  • Mondi South Africa (Pty) Ltd    
  • MTO Forestry (Pty) Ltd    
  • NCT Forestry Agricultural Co-Operative Limited Primary Co-Operative    
  • PG Bison (Pty) Ltd    
  • R and B Timbers (Pty) Ltd    
  • Sappi Ltd    
  • Singisi Forest Products (Pty) Ltd    
  • South African Forestry Company SOC Ltd    
  • Surejoy Industries (Pty) Ltd    
  • TWK Investments Ltd    
  • U C L Company (Pty) Ltd    
  • York Timber Holdings Ltd    

Methodology

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