N E W S & V I E W S • S E P T E M B E R 2 0 2 3 1 L I N K I N G I N D E P E N D E N T T I M B E R G R O W E R S T O M A R K E T S S I N C E 1 9 4 9 In this issue • Tree Farmer Award • Market update • The employment equity Act N U M B E R 1 0 8 • S E P T E M B E R 2 0 2 3
2
N E W S & V I E W S • S E P T E M B E R 2 0 2 3 3 Terry Wolhuter from 92 Farming Company (PTY) Ltd with Sydney Hlanguza from Ngenzokuhle 55 Trading (PTY) Ltd Congratulations to Sydney Hlanguza (right) and Terry Wolhuter (left) who are NCT’s 2023 Tree-Farmer-of-the-Year winners in the Small-Grower and Commercial-Grower categories respectively. Our worthy prize winners both received a chainsaw sponsored by PMB Power Products and Stihl Pietermaritzburg. This prestigious award was first presented in 2001 to acknowledge farmers that have excellently cultivated and enhanced their operations.
4 wife works for the University of Kwa-Zulu Natal as an admin clerk. “By the time I first meet Sydney he had already acquired his property and his focus was on trying to develop his own traditional family land which he had inherited. He initially planted wattle seed from NTE and struggled to get them away. Our paths crossed again some years later when these trees came to maturity, and we worked together to market the pulpwood and shared ideas about rolling out project wattle regen on his property” explains Cliff Walton – Greytown District Manager. Sydney’s property is where project wattle regeneration began in the surrounding Umvoti Tribal Areas, and he has helped pave the way for combined NCT and NTE wattle regen project in the Umvoti Tribal Areas. His well grown plantations consist of 3ha of black wattle which ranges from six months to five years. Sydney shared some of the many challenges he faces daily. Goats, cattle, and duiker breaking through his fences and seedlings being removed shortly after planting. Fire also is a constant threat and part of his management plan is making sure that he has good firebreaks during the winter months. He deals with challenges faced proactively and responds tactfully. He allows neighbours to collect firewood on his property in a controlled manner, this way he gains allies rather than enemies. Sydney in the later part of his life has not lost any energy or enthusiasm and has been participating in a program under the department of welfare to stay active and a few years ago won the trophy for speed walking 1000m at an event in Port Shepstone. He continues to be involved when time permits. He has a small side line business from his old store selling gas refilling to his neighbours. One of his more recent lifetime achievements is that he has been ordained a professor of Theology by the Rock Bible College and lectures at a bible college in the area twice a month. Sharing his take on the journey of life in his own words “Consider yourself as a student of life… always take advice from people who know more than oneself”. Sydney Hlanguza and Terry Wolhuter were awarded the prestigious Tree Farmer of the Year awards in the Small Grower and Commercial Grower categories respectively. The award is in recognition of exceptional si lvicultural practice, environmental management , and augmentat ion of operations. Small-scale Tree-Farmer-of-the-Year 2023 Sydney Qedumona Hlanguza Sydney became a member of NCT in his private capacity in March 2010. A year later, he transferred his membership into Ngenzokuhle T r a d i n g c c a n d , f i n a l l y Ngenzokuhle 55 Trading Pty Ltd in June 2022. Sydney started his working career as a teacher having graduated from Amanzimtoti Education and Training College and spent ten years teaching. He then joined Old Mutual’s sales division for ten years. At this point he returned to live permanently at his current residence in Ntembisweni Tribal Area having managed to buy the property adjacent to his family land. The property he managed to purchase came with an established business called Paradise Trading store which he took over and ran until competition changed his mind, he decided to close and concentrate on developing his family property. Sydney was proud to share that he is the fifth generation of the Hlanguza family, his late Great Grandfather originally coming from Tugela Ferry and passed away 98 years old. His grandfather was born on the family property in Ntembisweni in 1903. Sydney is one of six children and is the second eldest with his eldest brother Sipho Hlanguza residing on their family property as by tradition. All their properties adjoin, and Sydney has established his entirely to wattle and he also manages his other two brother’s sections as they reside in Greytown and Newcastle. Sydney is a proud father of seven children. His first-born children are all in successful careers and marriages while he is still responsible for his last two who are both training to be teachers. Sydney’s Vikesh from PMB Power Products awarding Sydney a chainsaw.
N E W S & V I E W S • S E P T E M B E R 2 0 2 3 5 Evidence of Sydney’s excellent forestry operations Fire breaks Sydney’s 3ha of wattle land Young seedlings are protected from cattle damage Commercial Tree-Farmer-of-the-Year for 2023 92 Farming (Pty) Ltd The Commercial Tree Farmer for 2023 was awarded to Terry and Belinda Wolhuter of 92 Farming (Pty) Ltd. Terry is the sixth generation farming on Eiland Spruit Farm in New Hanover that has been in existence since 1851 when Frans Mathys Wolhuter started farming. Historically the farm was utilised for cattle and in the flatter areas that could be cultivated crops. Peter Wolhuter, Terry’s dad who was the fifth generation to farm on Eiland Spruit Farm started planting wattle. In 1991 Terry started converting the wattle blocks to sugar choosing those areas that were more suited for sugar cane and left the steeper areas to wattle. The farm is 500ha in size and is currently planted with 250ha of sugar cane, 110ha of Acacia and 40ha of Eucalyptus. The remaining hectares are managed as open areas, valleys and waterways which are well maintained with Terry receiving his prize from Hayden from Stihl Pietermaritzburg
6 seasonal work being done to ensure alien invasives are eradicated. Terry is aware of his responsibility as the custodian of the land and the importance of ensuring the viability of the farming operation for the next generation so conservation of his resources especially the soil is of fundamental importance to his operational planning, hence the move to regenerative agriculture. All timber compartments that are harvested are being re-established along the contours; cool burns are practiced on the harvesting residue, which is only carried out once the local community have removed firewood and weather conditions permit. Pesticide usage is kept to a minimum and weed control is done by means of line hoeing followed by a modified slasher that uses chains instead of blades creating a mulch in the inter-row that conserves moisture, reduces weed germination and acts as a protective layer in heavy storms preventing erosion. In timber stands that have canopied, Terry uses his Nguni’s to graze under the canopy reducing the fuel load for fire protection and weed control. Regenerative agriculture in the sugar cane blocks is done by planting the fields due for reestablishment with a cover crop seed mix that includes amongst others Japanese Radish, Stooling Rye, Fescue grass and Oats. The resultant crop is used for the Nguni’s that has the bonus of the manure being spread over the area as it is grazed. After this operation maize is planted that is either sold or used for feed. Terry is discovering the benefits of the two-year fallow period without sugar cane seeing increased microbial activity and improved sugar cane growth when replanted. Due to the current situation with more sugar cane being carried over than usual, Terry is feeding this to the Nguni’s so these blocks are having an addition bonus of manure before the sugar cane ratoons or is planted with the cover crop. Terry’s passion for his farm doesn’t stop at regenerative agricultural operations, innovation is what has assisted Terry in the timber portion of the farm where cost savings and productivity improvements have resulted in the creation of a wattle seeder and a modified ripper with a duck’s foot improving stand survival percentages, uniformity, and happy staff members. The wattle seeder that was brought to life by Terry’s mechanic Tewis after numerus local engineering companies couldn’t has reduced the quantity of seed used per hectare and created a uniform dense hedge of young wattle seedlings that are thinned 12 to 18 months after sowing to 2 500 SPHA and then down to 1 800 SPHA at 24 months old. Where site conditions allow, conventional Acacia mearnsii (Black Wattle) seedlings are planted. This is where Terry’s ripper and duck’s foot combination comes to the fore replacing the conventional planting pit with a ripped line allowing the seedlings to be planted into it after is has been marked to the correct espacement. The addition of the duck’s foot behind the rippers tine shatters the soil underneath the surface and the suspended weight automatically close up the ripped line ensuring any moisture within the soil is not lost due to drying out. Being a sugar cane grower and owning an earth moving business specialising in cane contouring and water way construction, Terry knows the importance of a well-maintained road infrastructure and has gravelled all the main access roads throughout the farm, contour roads and water ways are all grassed to prevent erosion. Stream crossings are constructed with pipes and concrete so vehicles can operate in wet weather without the fear of silting up the streams or downtime due to being stuck. Adding to Terry’s cost saving drive on the farm linked to the regenerative agriculture is his composting operation where a mixture of cane tops, Mila sourced from the local cane mill and chicken litter are mixed and left to breakdown into a healthy compost that has resulted in the reduction of synthetic fertilizers purchased for the sugar cane farming. Social responsibilities are as important as any other operation on the farm and apart from assisting with firewood, Terry has loaned TLB’s to the community and sponsored a local soccer team. Chatting to Terry he attributes the success of the farm to everyone working together and wouldn’t have been able to do it without the assistance of Belinda, especially when it comes to all the admin.
N E W S & V I E W S • S E P T E M B E R 2 0 2 3 7 All timber compartments that are being re-established are done along the contours to ensure erosion is prevented Green Wattle (Acacia decurrens) stand sown with Terry’s seeder Responsible pesticide use is essential and all pesticides are locked away when not in use Terry’s composting initiative used to reduce the need for synthetic fertilizer and aiding the regenerative agriculture The farm’s neighbours are corporate timber companies and NCT commercial timber growers
8 This year’s AGM was one of the best attended meetings in years, with more than 120 members attending at the Anew Hotel in Hilton, the Richards Bay Training Centre and online. During the Chairman’s address, Philip Day reported that NCT members have reason to celebrate as NCT was able to market close to 2.3 million tonnes during the last financial year. NCT members also benefitted from the various price increases for both wattle and gum, which came close to a 24% increase during the year. Although these are great reasons to celebrate, he pointed out that the Chinese market is under pressure, and we have started seeing the impact of this as our Chinese customers have asked to delay some of their ships. In addition, the constant failure of SOE’s is ever-present and a cause for great concern. General Manager - Danny Knoesen, and Chief Financial Officer - Kerry Moffett corroborated what Philip Day reported on with the latest market information and financial results. Some of the biggest items on the management agenda remains the volatile exchange rate, the declining pulp pricing trend, and the issues we continue to experience with Transnet. Notwithstanding, NCT management is especially proud of the years’ financial performance and the positive impact this has had on members. We bid farewell to Graeme Freese and Micheon Ngubane who retired as directors at the AGM as they reached the retirement age. They have made great contributions during their tenure and their impact on NCT has not gone unnoticed. We celebrated the long-service awards of our members with 88 members being awarded certificates for 25 to 70 years of timber deliveries to NCT. We were proud to handover the Tree Farmer of Year trophies to Sydney Hlanguza and Terry Wolhuter for the Small Grower and Commercial Grower categories respectively. We also celebrated that the Commercial Services Department was awarded the Africa Supply Chain Excellence Award. This is certainly something to be proud of, and indicative that NCT is doing its best to serve its members. Members were treated with an inspirational talk by Stephen McGown who was held captive by Al Qaeda for almost six years. He shared the important lessons learned during this time. One thing is for certain, we need to be grateful for the little things and have appreciation for the simple things that make us human. After the AGM, the NCT Board re-appointed 2023 NCT Annual General Meeting The well-attended 74th AGM
N E W S & V I E W S • S E P T E M B E R 2 0 2 3 9 The Commercial Services Department was awarded the Africa Supply Chain Excellence Award Guest speaker, Stephen McGowan, spoke of his experiences with Al Qaeda Retiriing directors Graham Freese and Micheon Ngubane with Philip Day Vernon Schefermann, Brian Bhengu, Juanita Mason, and Thuli Motloli as directors and appointed Julia Reese as a new member to the Board. Vernon Schefermann was appointed as the new Chairman and Philip Day has agreed to take over as Vice-Chairman. My thanks go out to all the NCT role players who made this year’s event a great success. We look forward to next year when we celebrate 75 years in connecting members to markets.
10 25 YEARS Bentley, Eric William Bohmer, Alwin Chennells, Peter Mark Colbourne Farming CC de Vos, Sarel Johannes Geyer, Jan Jacobus Christopher HT Farming Enterprise (Pty) Ltd Isikhatu (Pty) Ltd Manlyn Estate (Pty) Ltd Mingay, Brian Wilfred O’Sullivan, P Prinsloo, Marthinus P J Rance Timbers Raw, Brendon Van Rooyen, L J H F WW Agric (Pty) Ltd 30 YEARS Chamane, Mazwimabi Charlie Farming (Pty) Ltd Coulthard, Clive Neil Croxford, Celia May Domleo, Bruce Eggers Roch (Pty) Ltd Hlophe M A Klingenberg, Alwin KRB Farming (Pty) Ltd McKenzie, Gordon Bancroft Mthethwa, Zwelikababa Muller, Lodewyk Joseph Jurgens Muller, Udo Wilhelm Nehal, Mukesh Nettiq (Pty) Ltd Ngcobo, Mandla Nicholas Ngubane, Fanana John Niebuhr, Harald Gunther Niebuhr, Herman Adelbert Nzimande, Kester John Pengaan Estate (Pty) Ltd t/a The Gorge Lodge & Spa Singh, Pravind Rambaran Torr, Gerrard Stafford Viljoen, Christo 35 YEARS du Preez, B J Forest Hill Sugar Estate CC Gunter, L M Hammar, Christopher James Kenlei Farms CC Maguire Farming (Pty) Ltd McKenzie, Duncan Peter Munitech Michael Pinecone Forestry (Pty) Ltd Saville, Jonathan Philip Taylor, M D F The Don Miguel Trust Thurston, Trevor John Norman 40 YEARS Deasenne (Pty) Ltd Larsen Farming (Pty) Ltd Nel, J P Niebuhr, Hubert Ludwig Pitman, V J Rosthwaite Farms CC T.A.D Poles The Pepworth Partnership Umhlatuzi Valley Sugar Company (Pty) Ltd 45 YEARS Klipp, Arnold Otto Maharaj Brothers (Pty) Ltd Mbona Enterprises Share Block (Pty) Ltd Philip Friedhold Klipp Will Trust Rooival Farms (Pty) Ltd 50 YEARS P A Briscoe Esperance Farming Trust Glenmac Forestry CC HTB Forestry Management Scheme KBG Estate CC KW Pleydell-Bouverie t/a Sheepwalk Estate L’Estrange Farm Trust Manzini Estate (Pty) Ltd Rossler R & Sons 55 YEARS Estorf Farms (Pty) Ltd 60 YEARS Bracken Forestry (Pty) Ltd MGO Farming WKE Gevers (Pty) Ltd 65 YEARS Keyser, Randolf V G Keyser Farming CC Ortmann Brothers 70 YEARS Joosten, Hogard H Muhl, E A Phoenix Wattle Farming CC L O N G - S E R V I C E A W A R D S
N E W S & V I E W S • S E P T E M B E R 2 0 2 3 11 Alwin Bohmer, Ed Witting, James Stegen and Hermann Meyer Andrew Mason, JP Nel and Vernon Schefermann Anthony Gibbs Harald Niebuhr Kim Bouverie, Dougal MacClean, Brian Aitken and Peter Briscoe Marcel Orthmann and Randolf Keyser Peter Mckenzie and Ken Leisegang Willi Gevers, Andrew Merson and Grey Hull
12 Conri and Colin Holhs, Dieter Orthmann with Marcel Orthmann Johan Ernst and Andre Ernst Muzi Shange, Devi Govender from FNB with NCT General Manager, Danny Knoesen Siyabonga Mazibuko, Lucas Zondi, Sydney Hlanguza, Mthondeni Majola, Nomthandazo Hlombe and Vusumezi Mfeka Sifiso Zuma, Nkosinathi Zuma, Ayanda Zuma, and Annette Zuma all from Greytown Brian Aitken, Michelle Day with guests Spotted at the Annual G
N E W S & V I E W S • S E P T E M B E R 2 0 2 3 13 Kim Beauverie, Stephen Gallagher with Guy Payne Protected from the chilly wind is Catherine Conway Opening a gift is retiring Board member, Micheon Ngubane Rowen Majola, Thenjiwe Masikane, Sipho Hlanguza and Tandazile Mxumalo Dressed warmly are NCT staff Ruth Ladbrook, Lisa van Zyl and Yashnee Moodley Visi Dladla and Zodwa Bhengu eneral Meeting in Hilton
14 From the General Manager As good as 2022 was for us as wood chip suppliers in South Africa, and the positive messages we conveyed during our zonals this year, I was mindful to add a cautionary note as to what we were starting to see in international pulp markets. Chinese Pulp Price Trends $/tonne In April I reported that the Chinese pulp market was again on the downslide after an incredible high during 2022. At that time, I pointed out a Chinese Hardwood pulp price level of $732 per tonne. Since then, it has collapsed further and for a while was below $500 per tonne. Analysts only expected this to happen over the course of more than a year. The European prices have also not been spared and have crashed in unison with China. There has been a small uptick on price back above $500, but the rapid decline, indicative of the poor Chinese and European economies, lack of paper demand and a surplus of pulp capacity is now seriously taking its toll on Pulp and Paper manufacturers. Danny Knoesen European Pulp Price Trends $/tonne
N E W S & V I E W S • S E P T E M B E R 2 0 2 3 15 Paper prices in all the major regions namely China, the USA and Europe are just not gaining ground and paper suppliers are struggling to turn around market sentiment to push increases onto consumers. Until there is some tangible improvement in paper pricing, the pulp market is likely to languish at the lower end. This is being compounded by new pulp supply capacity coming online in both China and South America. Manufacturers of both pulp and paper need to consider the supply demand equation and take commercial downtime to ease the surplus volumes in the markets. As is inevitable, the collateral damage spills over to wood chip markets, and many wood chip suppliers have been having a torrid time. The Chinese buyers are always aggressive in their approach and are quick to renegotiate terms when they are under pressure. They have been pushing all their suppliers to reduce vessels and prices. Whilst NCT has had to accept delays of up to three months in the vessel schedules with our Chinese customers, we have not retreated on pricing. I have been in contact with many of our competitors in other countries and we note anecdotally that Chilean and Australians suppliers have been pressured into price decreases of between 4% and 8% and significant reductions in shipments. Even Vietnam has not escaped unscathed, with prices significantly below their peaks of $200 per tonne late last year, trading at around $140 right now. Inevitably, having a three-month delay in all gum vessels to China will spill over into the monthly member’s intake into Richards Bay, and we have had to make a call to constrain intake to 75% of our budgeted volumes for the foreseeable future. Under the circumstances we honestly believe we have done all we can to minimise the impact on our gum members. Further to that, we are actively pursuing new opportunities for gum, with new customers in Asia, and are hopeful to mitigate this situation further with unplanned gum sales into Asia. Possible European markets are unlikely, as they face similar challenges to China, and customers we have traded within Europe have no desire for importing wood chips – a situation we expect for at least the next 18 months. However, if we can secure additional business, we will of course be able to review our intake of gum in due course. It’s all about China at the moment, and we watch weekly for indications of change. Although the major economies are not performing well and this is impacting our markets, we do still hold the longer-term views remain that there is still a worldwide shortage of fibre and we should see that come to the fore once again after this dip in the pricing cycles. Chinese Wood Chip Import Volumes (kt) vs Pricing (in RMB/t)
16 The term “Special Markets” at NCT refers to non-JSE listed companies and other independent buying entities such as (Pty) Ltd.’s, CC’s, Sole Proprietor and markets like International Forest Products, Treated Timber Products, Tekwani and Natal Forest Products. Over the years we have built up a network of registered and accredited financially secure markets, with a trading history, which ranges throughout the whole of the KZN province and into Southern Mpumalanga covering our members’ major timber growing areas. The main benefits for growers in trading through NCT into our registered markets are the optimisation of the timber stand, guaranteed timeous payments and competitive market-related prices. Since 1 March 2023, we offer free access to our accredited special markets for NCT members as we have scrapped the commission we charged previously. We are also in discussion with our major buyers to reward the collective ease-of-trade and guaranteed supply offering from NCT by paying us a premium - similar to the Guaranteed Supply Contract (GSC) reward paid to growers who perform to pulp markets. At this moment, special market trade does not attract the GSC purely as the GSC premium is paid from export and pulpwood trade at no cost. We have decided to offer this service for free to fulfill NCT’s service vision to growers in looking after all their marketing needs – not just the pulpwood section. It also ensures that NCT becomes a one-stopshop which leads to improved loyalty and limits the need for interaction with any other undesired third parties on the farm. In essence, this will cement our relationship with our growers. Credit and Risk Management The biggest challenge in managing this market segment is the identification of risk and the mitigation thereof. This is even more important after the latest FICA regulations forced upon business in South Africa. The volume and who we trade with all revolves around a trade credit value we allocated to each market, after careful consideration and adjudication by the credit committee that was established within NCT for this sole purpose. Steps in the Credit Application and Approval Process 1 Completion of Application documents: Banking details, VAT certificate, Owner IDs 2 Widened Search: Judgements, Risk analysis 3 Analyse Financials and Calculate Financial Ratios: 4 Liquidity ratios: Current ratio and the Acid test 5 Profitability ratios: Gross Margin ratio and Net Profit Margin ratio 6 References of other Trading partners: eg. Sappi for IFP 7 Credit Committee agree on a Credit limit: Assess and weigh all data. 8 Agreed Credit limit is governed by Oracle: Capping of delivery notes issued, 60-day period. 9 Trade Admin: Order confirmation signed, and delivery notes are generated. 10 Actual Deliveries are made: POD’s, Invoices and Receipts 11 Follow up & Chase Outstanding debts. Handover for collection if Red flagged As our road and rail network is becoming more challenging in some areas, congestion of roads, harbors and the increasing costs of diesel, and transport costs in general, we believe it is our duty to seek markets closer to our growers’ farms to optimise their income. We trust that our renewed focus on this market segment will serve our growers well and we expect to see an increase in volumes marketed to this market. NCT Special Markets – James van Zyl – Commercial Manager – Small truck delivering to a market in close proximity to the farm reducing transport costs for the farmer Special selected poles demanding a higher price than the normal pulpwood price
N E W S & V I E W S • S E P T E M B E R 2 0 2 3 17 After many years of manual offloading (hand offloading) the volumes have increased significantly at Ahrens Depot which warranted a mechanical solution. Suppliers have proved their loyalty to this Depot and grown volumes consistently to better than budgeted targets. This has prompted the improvements of the structure to accommodate a Logger Operator and the placement of a Bell Logger sourced from NCT Loading Operations. Along with the change in pricing methodology, the faster offloading will afford suppliers and transporters increased productivity. A field day was held to brief members on the operational upgrade. There was a good turnout of members who were happy with the introduction of a Bell. Official start date for mechanical offloading was Tuesday, 1 August 2023. This will in turn benefit NCT on several levels: service delivery to members, security, turnaround at the depot et al. Bell logger off-loading a member’s timber at the depot District Manager, Cliff Walton ,addressing the members on timber specificationss and operational costs Operations Manager, Gawie van Dyk, introducing and explaining the safe work procedure of the Bell logger BELL LOGGER AT NCT AHRENS DEPOT – Avinash Hottie – Depot Supervisor –
18 The Constitution of South Africa provides for the right to equality and states that legislative measures may be taken to protect and advance persons who were disadvantaged by unfair discrimination. This came in the form of the Employment Equity Act which was enacted in 1998. In simple terms, the Employment Equity Act sets out to achieve two main goals; the elimination of unfair discrimination and the use of measures to redress disadvantage. The first goal is achieved by identifying and eliminating any employment barriers that may discriminate on certain listed grounds such as race, gender, sex, disability etc. The second goal is achieved by transforming the workplace in one which is more representative of the South African demographic. To comply with the transformation section of the Act, designated employers are required to do a few things. Amongst others: • They must consult with employees or trade unions on their policies, procedures, practices and work environment and the demographic representation of staff and further analyse these matters in some detail. • They must prepare and implement an employment equity plan based on the analysis. • They must, as a key element of the employment equityplan, set out quantified numerical goals and targets designed to achieve equitable representation across the designated groups. • They must submit a report every year to the Director General. • And they need to make sure these functions are overseen and driven by a duly appointed employment equity manager who would ordinarily appoint a representative equity committee. During the last few years, the legislature developed and consulted on the amendment of the Employment Equity Act as it was noted that the transformation efforts have been slow since the inception of the Act. It is speculated that these amendments will become effective from 1 September 2023, although this is yet to be confirmed. There are a few major changes. The most notable one is the fact that the Minister of Employment and Labour is empowered to prescribe sector specific equity targets. These numerical targets focus on employees within the skilled to top management job levels as well as people with disabilities. Whereas previously the employer was given the discretion to determine these numerical goals and targets and to transform the demographics of the workplace at their own pace, now under the amendments, THE EMPLOYMENT EQUITY ACT A white elephant, a black sheep or chasing rainbows? – LJ Simpson – Corporate Services Manager –
N E W S & V I E W S • S E P T E M B E R 2 0 2 3 19 the Minister has the power to determine and set these targets (known as “sectoral targets”). Employers have been given five years to comply and meet these targets. This amendment has come under much scrutiny and has been labelled as being nothing more than quotas. Whether this is correct or not may still be determined by the Constitutional Court. The first challenge brought by the trade union, Solidarity, fell a bit flat and following a settlement reached between the parties, resulted in no material changes to the amendments at all. Watch this space! What these amendments will achieve though is that designated employers will need to be more serious about how they approach transformation in the next five years. Failure to do so may result in not receiving a compliance certificate and fines ranging in the millions or up to 10% of turnover. There was some fear that designated employers would enforce dismissals of employees who are over representative in certain occupational groups to avoid these fines. A word of caution- such an attempt may be seen as an automatically unfair dismissal and could result in a compensation claim of 24 months remuneration or could be challenged successfully in the Equality Court. Employers may feel stranded between the devil and the deep blue sea as they may not have many employment opportunities and cannot transform in time. Fortunately, the Act does provide for certain exceptions if one is unable to comply in time e.g., insufficient recruitment or promotion opportunities, insufficient employees with skills, qualifications or experience, court order, business transfers, and the impact on business economic circumstances. It is however essential that employers make a concerted effort with their transformation initiatives and recruitment strategies, and be able to illustrate with evidence, what it is they have done, the steps they have taken to achieve compliance or the reasons they were unable to do so. This may call for some creativity. For example, rethinking your approach to recruitment and making use of other newspapers or media when advertising vacant positions. You may need to approach specialist recruiters to assist with placing suitably qualified employees with disabilities. If the workplace is not suitable for employees for whatever reason based on race, sex, or ability, the employer may need to make reasonable changes to accommodate such employees. The workplace analysis is critical in assisting the employer to identify such barriers. Whether these new targets will be attainable is another debate on its own. One argument is that the economy and in turn companies would need to grow beyond realistic measures to facilitate a natural transformation of the workplace within the set time frames. With over 40% unemployment depending on the definition, a notable skills shortage and economic growth being where it is, this argument probably holds water. One of the welcome changes to the Act is the revised definition of designated employer. It now only affects employers who have more than 50 employees in its employ. Previously, employers who had a certain turnover irrespective of staff numbers, also had to comply with the transformation provisions. This certainly brings great relief for smaller family-owned businesses. But beware those businesses that deliberately restructure operations to reduce employee numbers and thereby attempt to avoid the transformation provisions. The equity minefield is wrought with complexity as we found out during a recent NCT equity committee workshop. The committee considered how complex it may become when one considers the fact that employees may start identifying with a sex or gender which is different from what was assigned to you at birth. This conundrum has been more prevalent in the United States in recent years where black Americans identify as white and vice versa. This is not just an American phenomenon as there are cases in South Africa where the race status quo has been challenged. One may be tempted to think that this is merely academic, however, it is no longer unusual to have multi-racial families. How should children from these families identify within the archaic framework found in the Employment Equity Act?
20 NCT Employment Equity Committee About 15 years ago I completed a master’s dissertation on employment equity, and after much effort I concluded that we should not merely focus our efforts on transformation of the workplace to promote equity. We need to focus on quality education and job creation. This goes beyond racial and gender lines. Without these two pillars our transformation efforts will not result in real transformation of South Africa. We need transformation of the economy, and as with many things in South Africa, this will likely lie on the shoulders of the private sector. Equity and transformation matters are This article should not be used as legal advice as it is merely an opinion piece and for information purposes only bound to become more complex with time. The Employment Equity Act may have become a redundant white elephant, a not so welcome black sheep and with the recent amendments, politicians chasing rainbows. What is important though, is that employers ditch the ostrich approach and dive into this pool of complexity and approach it with much wisdom, not only to avoid the hefty fines, but to harness the value of a diverse workforce, equipping employees with skills to be employable and with a bit of grace we may be able to grow and make room for more opportunities.
N E W S & V I E W S • S E P T E M B E R 2 0 2 3 21 The El Niñio weather event occurs when the equatorial Pacific Ocean gets up to 3°C warmer than usual, and it normally has a global impact on weather patterns. El Niño has officially started and is expected to become strong by summer. This year’s event is predicted to be a big one, having a dramatic effect on weather patterns around the world. It’s likely to set new heat records, energise rainfall in South America, fuel drought in Africa, and disrupt the global economy. It may already be responsible for early-season heat waves in Asia and Europe this year resulting in record high global temperatures. New record daily global temperatures have already been set on three separate occasions. South Africa is a relatively dry country and even in the wetter regions (Forestry areas) water is generally the single most limiting factor to tree growth. It is therefore important to manage all timber compartments based on trying to reduce water stress on trees. This includes all aspects of Forest Management: from the initial choice of species to plant, to the implementation of silviculture operations and the protection of soils during harvesting and extraction. Soils are the reservoir that store water and nutrients to drive tree growth, they should be protected and enhanced at every opportunity! SITE-SPECIES MATCHING Soil, rainfall, temperature, and topographical information are considered when selecting a species suited to an area. Site species matching is particularly important on drought prone sites. Lessons learn from past dry periods include: • Soils with an Effective Rooting Depth (ERD) of less than 40 cm should not be planted (except for high rainfall mist-belt areas). Hydromorphic soils (wet) should not be planted. • In coastal areas (below 400m) plant hardy species or hybrids on marginal sites (C. henryi hybrids, E. grandis x E. longirosrata and some hardy E. grandis x E. urophylla hybrids). • On marginal mid-altitude sites plant A. mearnsii, E. dunnii or hardy hybrids. • Marginal sites between 1100m and 1400m can be planted to E. dunnii, E. badgensis (above 1200m). • High altitude marginal sites can be planted to E. badgensis. • Clonal hybrids of E. grandis can be deployed on marginal E. grandis sites but it is important to consult with the nursery supplying the material to ensure that you are planting a ‘drought hardy’ clone. • Black Wattle: Black wattle is a relatively drought hardy species and is often planted on shallow, El Niñio and management of plantations under drought conditions – Craig Norris, NCT’s Tree Farming Manager –
22 dryer sites, it is thus prone to damage during extended dry periods. Even in better forestry areas this tree is usually planted on the worst sites (Shallow, north facing, and rocky) and therefore may show signs of damage before compartments planted to other species. On clay/ loam to clay soils this tree can grow successfully on soils as shallow as 35 to 40 cm, however on sandier soils depths of 50 to 60cm are required. • Soil texture plays an important role in determining ERD, soils with higher clay contents have a better moisture holding capacity. BRUSH MANAGEMENT & SILVICULTURE Plantation residues can be used to buffer the effects of dry periods. A mulch acts as an insulator keeping soils cooler during hot spells and reducing evaporation from the soil. Because surface soils remain cooler and moister, roots grow up to the surface and into the mulch thus increasing the volume of soil and moisture available to roots. Brush retention also results in increases in soil organic matter which helps to retain moisture and nutrients in the soil. Ideally residues should be mulched to form a compact layer of organic matter that can protect soils. However, this is an expensive operation and spreading brush, or even stacking it in brush piles, will improve soil protection and moisture retention. SITE PREPARATION & PLANTING TECHNIQUE Correct site preparation and planting technique can help to minimise seedling mortality. On regeneration sites, small well prepared (no clods and minimum depth of 30cm) pits are sufficient (quality rather than quantity). Intensive site preparation will result in soils drying out. At planting a litre of water should be poured into the planting pit, mixed with mineral soil to form a porridge (remove any clods), and the seedling planted into the porridge. Dry soil (or mulch) should then be scraped back to cover the wet soil and break the capillary action between the soil moisture and surface air. Alternatively, seedling can be planted into hydrogels using the same principle. Hydrogels are particularly effective in sandy soils that rapidly dry out. In dry times seedlings should be planted deeper at a depth of four to eight centimetres (to the top of the root plug). Drought stress in a wattle compartment on shallow soil Thinning plantations reduces competition for moisture Weeds compete with young trees for moisture
N E W S & V I E W S • S E P T E M B E R 2 0 2 3 23 WEED CONTROL Weeds compete with plantation trees for resources. Competition control becomes critical during times of water shortage. This means spring, autumn and drought periods are times when weeds will have the biggest impact on soil water reserves. Woody weeds should be prioritised on drought prone sites. SPACING AND THINNING Wider spacing of seedlings will produce larger diameter trees but the total timber volume production per hectare will also reduce. However, if stocking is high the diameter of trees is smaller resulting in higher harvesting and extraction costs. A lower stocking will result in less intraspecific competition and therefore less stress on trees. As a rule, on good forestry sites used for pulp-wood plantations about 1500 to 1600 trees per hectare should be standing at rotation age. For average sites this can be reduced to about 1400 to 1500 stems per hectare and on poor sites stocking can be reduced to as low as 1200 trees per hectare. Thinning of plantations can be used as an effective tool for reducing stress in dry times. However, the thinning would need to be implemented timorously. Spacing and Thinning of Wattle: Wattle thinning is primarily done to reduce stand density at various stages in the rotation to reduce competition and remove inferior trees (damaged, suppressed, diseased, forked etc). Thinning can be adjusted to favour either bark or timber production: Lower stocking =bigger trees and betterquality bark. Higher stocking=higher timber tonnage but poorer quality bark. Number, timing, and intensity of thinning can be manipulated to influence the end crop and to reduce stress in the plantation. On marginal sites heavier and earlier thinning can be used to reduce stress. For example, in seedling established plantations a single thinning operation could be implemented when the trees reach four to five meters, and the stand could be reduced to 1200 stems per hectare. SALVAGE OF DROUGHT-DAMAGED COMPARTMENTS Drought damaged compartments generally consist of a mixture of dead trees; trees with dead tops and epicormic shoots on the stem; and healthy trees. The relative proportion of these three categories of trees, the distribution of damaged trees and the age of the trees will determine the method of salvaging the timber. A few general guidelines can be used to assist in making decisions relating to salvage of damaged compartments: • If there are more than 1000 (or 60%) healthy trees per hectare, then the compartment can be grown to rotation age. But you need to assess individual compartments (How is damage distributed, how severe is the damage etc). • If most trees have a diameter that is greater than 100mm then the compartment can be salvaged for pulpwood. Smaller diameter trees are not worth stripping and can be sold for charcoal production, firewood, or small diameter poles. • Most trees with epicormic shoots up the stem will strip to a certain extent (approximately half of the logs). • Dead trees and trees with damaged bark/ difficult to strip, can be felled and stacked for four to six months and the bark chipped off once dry. Logs need to be stacked in such a way to ensure maximum air movement through stacks (small gap between logs). Only stack logs with a diameter lager that 100mm, the cost to strip logs with a smaller diameter exceeds the species income. Southern Africa is a dry region and drought is a regular occurrence. A timber crop will most probably experience an extended dry period at some time in the rotation. It is therefor important to plan for these droughts at time of planting. By selecting the correct species/clone for a site and implementing sound silviculture practices, drought induced mortality can be minimised. Mulched residues improve soil moisture retention
24 The annual forest management certification audits of the NCT Group Schemes took place during the last week of June and the beginning of July 2023. The Forest Stewardship Council© (FSC) audit was first, conducted by two South African auditors, with a British observer. 13 forest management units (FMU’s) were audited, starting at Lidgetton, moving north to Mtubatuba, then Melmoth, through Vryheid, Paulpietersburg and finishing at Commondale. This was the fourth surveillance audit of the NCT Group Scheme, which means that a new five-year cycle begins again in 2024. At the time of writing the final report has not been issued but given the intense scrutiny we do expect corrective actions. The Programme for the Endorsement of Forest Certification© or PEFC (SAFAS) audit was conducted by a local South African and a British auditor. Three FMU’s from the Eston and Dalton areas were audited. This was the second surveillance audit of NCT’s PEFC group scheme’s audit cycle. At the time of writing the final report has not been issued, but again, there are likely to be corrective actions. NCT’s PEFC audit was run concurrently with the entry audit for African Environmental Service, who are in the process of establishing a PEFC forest management group scheme for SAFAS in South Africa. The corrective actions should be straightforward to close out. These in part may reflect the postCOVID, continued increase in vigilance from the certification body’s overwatch organisation, the results of which were felt more keenly last year. While the findings for the PEFC and FSC audits differ, one area of commonality between the two, which is the basis of most audits, is legal compliance. An issue that we have as a group is the lapse of validity of training certificates and is a factor that requires attention and focus of our members. Another matter highlighted was that of documentation. Audits are conducted against a standard and the onus is on us to demonstrate to the auditor that we comply to the standard. The group scheme take-on process, including how we define precisely what is to be included in the certified area needs refreshment. This deals with the non-timber areas to be included as part of the FMU. It remains a dictum of audits that unless a requirement of a standard is documented, then it is assumed to not have been done. The trick is to find an acceptable method of documentation that will satisfy audit standards. The SAFAS Value-based Platform (VBP), an internet-based platform, assists with this for the PEFC group. NCT’s FSC Group Management System is the method we use to do this for the FSC group. This Management System is in process of being revised in preparation for the new cycle beginning in 2024. There were numerous positives from the audits. One strength mentioned is the size and condition of the representative ecosystem as required by the standards. A recurring theme was the high level of noxious weed control across the properties of the members audited. Grassed roads and good drainage control, both of which help manage sediment wash off roads was commended. Herbicide and pesticide use across the FMU’s has dropped and this is also a strength for the FSC. The transparency and openness of members and staff that were audited was appreciated. Staff wellness, level of training and forestry knowledge of those that were interviewed was commended. The level to which the audited members are embedded within their respective communities and the assistance provided to these communities was commended. While the audits were at times challenging and some of the results were not as good as hoped, these are not insurmountable, with forest management certification continuing for both FSC and PEFC. Report on the Annual 2023 FSC© and PEFC© Audits – Colin Summersgill – Certification Manager –
N E W S & V I E W S • S E P T E M B E R 2 0 2 3 25 Auditor discussion Empty pesticide containers secured awaiting disposal Green corridors Compliance with fuel storage
26 In a Sector where a large proportion of pesticide applicators are women, a trend that is common across the agricultural sector in developing nations, the additional suite of hazards posed to pregnant women, their foetuses and breastfeeding infants that result from the use of chemical pesticides, needs careful consideration and proactive management. Only through identifying, understanding, and mitigating these hazards, and reducing exposure to them, can we nullify the potential risk they pose. Protecting pregnant and breastfeeding women (and subsequently their unborn foetuses and breastfeeding infants) is mandatory by law. It is legislated under the Code of Practice on the Protection of Employees during Pregnancy and after the Birth of a Child, from this point referred to as The Code, which is in accordance with the Basic Conditions of Employment Act No. 75 of 1997. The Code lays out a string of pre-emptive requirements for the employer, as well as a list of requirements once an employee has notified them of a pregnancy. To help Forestry South Africa members navigate this, FSA’s Timber Industry Pesticide Working Group (TIPWG) has produced a guidance document with illustrative infographics (Figures One to Three). While all employers are responsible for familiarising themselves with The Code and the legal requirements it sets out, the FSA Guidance document provides a handy addition to The Code that will help employers navigate it. The FSA Guidance document has been reviewed by Dr A du R Louw (M.B., Ch.B.; M. Fam. Med.; M.B.A.; D.O.H. Specialist Family Physician & Occupational Medical Practitioner) and will be updated periodically when and if required. The infographics provide a checklist of considerations that employers will need to implement through policies and procedures, training and record keeping. It should, however, be stressed that employers need to familiarise themselves with The Code prior to using the infographics to ensure the measures taken suit their unique circumstances. It is important to note the infographic compliments and simplifies The Code and should at all times be considered along with The Code.The FSA Guidance document can be downloaded from both the FSA and TIPWG websites. There are also links to The Code and Basic Conditions of Employment Act No. 75 of 1997 on the websites. We urge all employers to familiarise themselves with this. New Guidelines for the Protection of Pregnant and Breastfeeding Women – Jacqui Meyer, TIPWG Coordinator –
N E W S & V I E W S • S E P T E M B E R 2 0 2 3 27
28
N E W S & V I E W S • S E P T E M B E R 2 0 2 3 29
30
N E W S & V I E W S • S E P T E M B E R 2 0 2 3 31 Given our overall penchant for social media, one often hears of people complaining about becoming trapped in an “echo chamber”. This echo chamber reference originates from various social media algorithms picking up on your interests and theme searches and then suggesting links to sites coupled to that liking or theme. Eventually one finds oneself moving from one echoey rabbit hole to the next, all much alike, and continually feeding one’s specific interest. Eventually it seems as if nothing else exists other than information and developments around that topic. So the person in the rabbit hole resonating with echoes of cats coughing up fur balls on the front seats of electric sport cars (don’t mock it, it’s real people) are totally astounded when they glance at the phone screen of their co-worker and find to their surprise, evidence that suggests that cats may not necessarily be the center of the universe despite the cat-filled universe that Facebook and Instagram have been consistently presenting. As an interesting aside, I read the other day of just how ironic it is that mankind has in its hands, a tool that that can answer literally any question about anything, and we use it to share pictures of our lunch. Go figure! It’s not only internet-linked electronic media users that are susceptible to falling foul of echo chambers. Join me as I take you through the rather dark rabbit hole that is our every-day life experience. The gloomy recess of this arguably treacherous hole is inundated with regular stimuli that carve perceptions deep into our psyche. Your power goes off anything from once to five times a day. Sometimes it goes off – and stays off – for days! If you stay in Johannesburg, then your water goes off as well for days. If you stay in Pretoria your mayor goes off every week. If you stay in Pietermaritzburg your municipality goes off, and stays off, for years. If you stay in the centre of Johannesburg, then your road explodes for no apparent reason, and if you are a taxi owner, your vehicle becomes a flying object with poor landing ability. – Rob Thompson Member Services Department Manager –
RkJQdWJsaXNoZXIy MjgyNjA0