9 INTEGRATED ANNUAL REPORT 2023 willingness to accept private enterprise assistance towards rebuilding these institutions. We have been burdened by massive extra costs because of this service dereliction, which just adds to the ever-increasing cost of doing business in South Africa, whilst trying to remain internationally competitive. Despite having to deal with these obstacles, NCT has posted some significant production and financial figures. We have achieved a R3.281 billion group turnover and shown a profit of R283.2 million. The total number of members tonnes marketed by the Co-Operative is over 2.1 million. NCT continued to be the pulpwood price leader in South Africa and many organisations continue to benchmark their pricing based on ours. The mills have continued to function optimally and together they have chipped and loaded over 40 dedicated woodchip vessels during the course of the year. With the mills running close to capacity, we need to be vigilant about maintaining them to ensure optimal usage and cost-efficiencies. This was highlighted recently when the chipper disc at NCT Richards Bay Wood Chips failed unexpectedly and catastrophically, resulting in downtime of almost two months on our Eucalyptus woodchip production line. I must commend all staff involved in the repair operations, as well as those making alternate market arrangements to ensure that disruption to our Eucalyptus suppliers was kept to the minimum. Again, despite all of the challenges NCT faces the new year with a full order-book and the prospect of another good year for sales volumes. The Board has functioned efficiently and in unison with the strategy and goals of NCT. Together with management, we have ensured that NCT provides outstanding service to its members and customers. We have managed the many obstacles that have presented this year and have overcome or controlled most of them. The Board is continually evolving, and this year sees the term of two of our long-serving directors drawing to a close as they retire. Graeme Freese and Micheon Ngubane have both served NCT for many years and have filled leading roles on the Board. Their dedication and sense of duty has not gone unnoticed and on behalf of all members I thank them and their spouses for this selfless service. I have been well supported by all Board members, as well as management and I am grateful to all involved for this. I must also express my appreciation to all our spouses and families who continually lend their support to enable us to serve NCT and its members. My Vice Chairman, Vernon Schefferman, has been a constant source of support to me, for which I am grateful. Danny Knoesen, our General Manager leads his team with purpose, clear direction and it has been a pleasure to support him this past year. PHILIP DAY | CHAIRMAN “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.”
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