8 INTEGRATED ANNUAL REPORT 2023 market mix, is a significant domestic demand for our pulpwood offering. This diverse market array has reduced the NCT exposure to market risk considerably and has contributed towards NCT being ranked as one of the biggest single source woodchip suppliers of the world today. However, we cannot let our guard down and must continue to work hard at being the supplier-of-choice to our existing clients as well as those still to be discovered and engaged. Over the last number of years, we have always regarded the exchange rate as being a major point of exposure. This remains the case but more recently we have been challenged by a series of serious risks closer to home. Here I refer specifically to the State-Owned Enterprises (SOEs) that we must deal with. An alarming decline in service offering and capacity from Transnet ports, rail and Eskom pose arguably the biggest collective threat to our business today. I said last year that if NCT can’t get chips-on-ships, then our business comes to an end. The authorities tasked with managing State-Owned Enterprises (SOEs) have failed dismally, due to a lack of competence, accountability, and skills, to ensure that we, the taxpayers of South Africa, are acceptably served. There seems to be no political will to ensure that these SOEs remain functional. There is also no apparent Chairman’s Report 2023 NCT’s core business has always been to market members timber to the best advantage of members. This is easier said than done and requires every department to be in sync given that NCT offers its members a wide array of services to ensure their business sustainability. NCT is in fact approaching 75 years of service delivery to the independent timber growers of South Africa and 50 years of woodchip export to Japan. Some of our esteemed Japanese clients are still the original clients with which NCT started its marketing journey. This is a remarkable achievement and confirms our commitment to sustainability and loyal service. One of our strategies has been to diversify markets and over the last few years have gone a long way towards achieving this strategic objective. In the East, we count some of the biggest pulp and paper producers in the world, as our clients. We have built relationships with these Japanese and Chinese companies based on our consistent quality offering and reliability of supply. More recently we have explored opportunities into Europe given the consequences of the Russian-Ukrainian war and resulting increased requests for biomass from the likes of the Iberian Peninsula, France, and Scandinavia amongst others. Adding further depth to our substantial P H I L I P DAY
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