16 INTEGRATED ANNUAL REPORT 2023 The war in Ukraine and the global hangover from the COVID-19 pandemic led to high bunker fuel prices (high cost of freight) and constrained vessel / container availability, in turn leading to high market discernment in terms of affordable raw material sourcing. Local transport costs soared given fuel price increases which proved challenging specifically to the more distant and marginal Eucalyptus growers / suppliers. Extreme Rand volatility (against the US dollar) is now established as the new norm. Ongoing communication and encouragement to members via the Member Brief was initiated to ensure quality and accurate supply performance given global competition for most economical quality pulpwood. NCT must retain its competitiveness on the global stage. Rigid performance monitoring (against allocation) implemented and maintained in order to remove exaggerated requests from the allocation process and allowing more room for reliable supply. R50/tonne increase in Eucalyptus price (effective 1 June 2022) to assist suppliers facing fuel-price increases. NCT maintained consistent focus on ongoing cash-flow management and not cash-position. This in the best interests of members (and their own cash-flow needs). Regular workshops held with small growers in Zululand (reliant on Eucalyptus markets) regarding the market situation. Daily monitoring of exchange rate dynamics and judicious appl ication of Rand-value hedges or buckets iniated primarily to protect the budgeted Rand-value. Global economic upheaval Addressing economic challenges…
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