37 McCarthy Drive, Pietermaritzburg 3201 * PO Box 13363, Cascades 3202 Telephone 033-8978500 * Website www.nctforest.com Linking our members to markets
1 Linking our members to markets Co-operative principles NCT Forestry Agricultural Co-operative Limited (NCT) was established in 1949 as a marketing co-operative for private and independent timber growers and subscribes to the seven co-operative principles: • Voluntary and open membership • Democratic member control • Member economic participation • Automony and independence • Education, training and information • Co-operation among co-operatives • Concern for community As a co-operative, its members who share in profits, own NCT. Today membership stands at 1 490 , representing a total area of over 300 000ha - 21% of afforested land in South Africa. NCT is recognised as an international supplier of quality round wood timber, hardwood pulp chips with access to international biomass markets. It is regarded as the largest forestry marketing organisation in southern Africa. NCT’s mission is to assist members to achieve their full forestry potential and optimise financial results on a sustainable basis. Members not only benefit from the wide range of services NCT offers, but also share in its profits and qualify for bonuses based on their patronage and committed supply as provided for in our constitution. Over and above members’ resource and plantations, the land owned/leased by NCT totals 21 800ha. This forms a strategic reservoir of timber which augments members’ timber when required and ensures a consistent supply of quality round wood timber to markets. These farms are managed by NCT Tree Farming. As reported in NCT’s 2025 annual report, 1.1 million tonnes of timber was marketed on behalf of members and suppliers. This comprised 47% Eucalyptus (gum) pulpwood; 32% Acacia (wattle) pulpwood; 21% Pinus pulpwood; and 4% nonpulpwood. Members’ timber resources
2 Linking our members to markets Sphere of influence NCT’s core area of management and operation covers the province of KwaZulu-Natal. Demand for NCT’s services however has resulted in its sphere of influence extending to parts of the Eastern Cape, Mpumalanga, Limpopo and eSwatini. The NCT head office is based in Pietermaritzburg with additional district offices in Greytown, Richards Bay, Vryheid and Stutterheim. A satellite office in Piet Retief services Mpumalanga, Limpopo and eSwatini. Each district office acts as a link to a specific geographical member constituency, offering a range of services including timber order allocations, timber transport co-ordination, acoounts and technical forest advice amounts others.
Markets Pulpwood Hardwood timber destined for pulpwood, NCT’s predominant product, is sold into various wood chipping plants. NCT further markets timber to domestic corporate pulp and paper markets. Non-pulpwood NCT offers its members the opportunity to trade their non-pulp round log timber into a host of financially secure non-pulp market options (ie saw timber, treated poles, mining timber, charcoal markets). Its network of registered non-pulp round log buyers/markets cover the three main timber growing areas in South Africa - KwaZulu-Natal, the Eastern and Western Cape and Mpumalanga. This market constitutes around 4% of NCT’s total sales volumes. Wood chips NCT supplies timber into three wholly-owned wood chipping facilities - NCT Durban Wood Chips and NCT Richards Bay Wood Chips (incorporating the adjacent BayFibre facility) - and export woodchips to Japan, China, India, and Taiwan. These mills place NCT and a significant portion of privately-owned South African timber resources in an excellent position to access overseas markets. This, in turn, contributes to better pricing and financial returns for the private South African timber grower. BayFibre capacity: 800 000 tonnes pa Richards Bay Wood Chips capacity: 800 000 tonnes pa Durban Wood Chips capacity: 650 000 tonnes pa 3 Linking our members to markets
Commercial timber species Hardwood A number of Eucalyptus (gum) pure species hybrids are grown and the choice of species is determined by site and climatic conditions and market requirements. Eucalyptus is a versatile, short fibre hardwood that is successfully processed in South Africa and in several countries overseas for kraft and other types of pulp. It is also used in the mining sector, though its primary use is in pulpwood production. Eucalyptus timber is exported in woodchip form. Acacia mearnsii (black wattle) falls within the hardwood definition and is grown for both its bark and timber. Wattle timber is used for the manufacture of pulp. Other important outlets are the production of charcoal and firewood. Wattle is exported in woodchip form. In additon, wattle bark is used to derive extracts used in the leather tanning and adhesive industries. An independent regulatory body, to ensure the sustainability of the bark industry, controls the sale of wattle bark. Wattle, originally grown essentially for its bark extracts, is now rapidly becoming internationally recognised for its excellent pulping characteristics. Softwood The two most commonly grown pine species are P. patula and P. elliotti. Pinus patula and P.elliotti were the most planted pine specie. Growers are expanding to include P.patula x P.tecunumanii and P.elliotti x P.caribaea hybrids due to disease tolerance and site adaptability respectively. 4 Linking our members to markets Pinus Acacia Eucalpytus
Services offered to members NCT provides a variety of services to assist members to meet their full forestry potential. Tree Farming Through our Tree Farming division, NCT manages its own timber plantations and those of landowners requiring a management service. Marketing • Develop and source new pulpwood and round wood timber markets. • Supply wood chips to international markets. • Negotiate competitive prices on behalf of members. • Continually explore alternative markets and timber beneficiation opportunities. Logistics • Arrange the transport of round wood timber from farm to purchaser. • Negotiate competitive road and rail contracts on behalf of members. • Stockpile round wood timber at strategically located depots. Harvesting • Advise on the use and appointment of harvesting contractors. • Advise on best harvesting practices. Silviculture • Provide silviculture manuals and productivity pamphlets. • Advise on best operating practice advice. Technology Transfer • Invest in relevant collaborative research programmes. • Transfer research information to members. • Provide extension services (eg certification, best management practices). Tree Improvement • Advise on site species matching. • Provide access to improved genetic material and new hybrids developed through collaborative programmes. Mapping • Produce accurate farm maps that meet FSC standards. • Update farm maps and offer a high quality map plotting service. • Provide access to a stand-alone GIS system. 5 Linking our members to markets
Quality NCT has been Forest Stewardship Council® (FSC®) certified* as a Group scheme manager since November 1999. Approximately 70 000ha of plantations are certified under the NCT FSC Group Certification Scheme. This includes farms owned by members and the co-operative. Approximately 37% of the timber that NCT markets is procured from FSC-certified operations. The remaining 63% is obtained from sources that comply with the FSC controlled wood requirements. An alternate certification system has been development based on the South African government’s forestry standard and is known as the Sustainable African Forest Assurance Scheme (SAFAS). The system has been endorsed by the Programme for the Endorsement of Forest Certification (PEFC) and has been in operation since 2021. Quality assurance is important to customers who deal with NCT. NCT strives to provide quality assurance for it’s customers using an internal Quality Management System (NCT QMS). This provides a document and system procedure for a rational accountable organisational framework. This includes internal audits of the system, ongoing reviews and strategic and tactical planning. A customer satisfaction and corrective action component is included in this framework. * *FSC ® is dedicated to the promotion of responsible forest management worldwide. NCT FSC Trademark licence code FSC-117221 6 Linking our members to markets
Social responsibility NCT undertakes social investment initiatives where it makes practical and meaningful contributions to society. The environment NCT has an environmental policy that promotes sustainable tree farming operations. This includes ecological, economic and social aspects. These principles are promoted on NCT managed land and all NCT members are encouraged to adopt these principles. Key aspects are: • Compliance with applicable laws • Encouraging landowners to set aside areas of conservation • Management of timber operations to create wealth in local communities • Awareness of environmental issues and best management practices. NCT has also developed a green policy to ensure the reduction and recycling of waste; operations on farms are energy efficient and environmentally-friendly; and awareness of green issues among staff and members. NCT is an implementation partner of the Umgungundlovu district municipal land use project. The focus of which is to develop the capacity of private and communal landowners to engage in sustainable land management practices that support biodiversity conservation. 7 Linking our members to markets
Biodiversity conservation NCT supports three conservtaion projects related to commercial forestry and surrounding communities. • The Ground-hornbill project to raise hatchlings and create awareness of the species in communites. • The Oribi Working Group for its community outreach programme focussing on anti-poaching and oribi surveys. • The national grassland programme, a regional initiative to conserve biodiversity within the grassland biome. Impact on communities NCT has undertaken social investment initiatives aimed at bringing new hope and opportunity to previously disadvantaged communities especially those in and around its plantations. Its selection of projects reflect the organisation’s understanding of current good practice and hopefully make a difference to the most vulnerable in our communities. NCT invests 1% of its pre-tax profit in community programmes. To date, NCT’s social investment programme has impacted on over 100 communities in KwaZulu-Natal and Mpumalanga. All projects are assessed prior to approval, on a case-by-case basis and are required to have documented objectives. Projects focus on: • Literacy and education focussing on early childhood development • Welfare of the most vulnerable i.e orphans and HIV infected children. • Special needs equipment for the physically- and mentally-challenged. • Food security with the establishment of community gardens. • Small business development. • Basic infrastructure and equipment at clinics, schools and home-run crèches. 8 Linking our members to markets
Empowerment NCT’s process to accelerate empowerment among its black members began in the 1980s with a major focus in the 1990s. Total Black membership stands at 735/1491 (49% of NCT’s total membership) of which women members make up 23%. These members benefit directly and are effectively part-owners of the co-operative. Enterprise development NCT continues to support its small-scale timber growers with new and improved genetic material, leaving the planting and silvicultural responsibilities to the owner. To date, NCT has planted over 1 200 ha benefiting over 400 growers in the Zululand and Midlands area. Skills development As part of its skills development program, NCT sponsor students at institutions of higher learning to further their forestry related studies. Priority is given to those at post graduate level. Their research focuses on various aspects of forestry silviculture relevant to private timber growers, including MSc and PhD studies on how pests and pathogens—exacerbated by global warming—affect the productivity of forestry plantations. Attention is also directed at farm skills where NCT sponsors individuals who wish to enter a skilled mechanical trade in the industry. 9 Linking our members to markets
Governance NCT strives to be a dynamic and competent organisation delivering quality products and services. In fulfilling this role, the directors and staff act with pride and integrity while adapting to changing circumstances. NCT is made up of a balanced team of professionals who offer its members a unique blend of specialisations in the various aspects of timber growing, transport and marketing. The NCT board consists of directors elected by members according to its constitution. The board provides strategic direction and management, through the general manager who is responsibile for the operational aspects of the organisation. Danny Knoesen is NCT’s General Manager and his management team is made up of: Rob Thompson Assistant General Manager & Manager: Member Services Richard Liversage Manager: Tree Farming Division Kerry Moffett Chief Financial Officer James van Zyl Manager: Commercial Services Jean Simpson Manager: Corporate Services Vusi Dladla Manager: Research & Development Services Deepak Mohanlal Manager: Information Technology Services Lenny Naidoo Mill Manager : Durban Wood Chips Ryno Martyn Mill Manager : Richards Bay Wood Chips BOARD Executive Audit & Risk Marketing Mills Social & Ethics Structure Tree Farming Member Services Tree Farming Wood chipping Finance Commercial Services Corporate Services Development & Research Information Technology Internal Audit COMMITTEES MANAGEMENT 10 Linking our members to markets
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