FROM THE GENERAL MANAGER DANNY KNOESEN In spite of this, we fully recognise that many growers are under significant pressure. Pulpwood prices are, at best, at cyclical lows, while input and fuel costs continue to rise. This is compounded by weak domestic infrastructure, ongoing political and rural challenges, and subdued demand for Eucalyptus timber. Globally, the picture is equally challenging, with constrained dollar pricing, demand volatility driven by world events, structural declines in Japanese pulp and paper consumption, increasing low-cost competition and no Timber revenues remain under strain, input costs continue to rise, infrastructure challenges persist, and international woodchip markets remain highly competitive. At the same time, export dollar prices have declined over recent years, while exchange rates have largely returned to levels last seen in 2022. These are the waters we are all sailing in. However, despite these challenges, NCT maintains a full order book for wattle and gum exports, stable local markets, and stable cash flow at current exchange rates. At our recent AGM, we shared a candid assessment of the challenges facing both NCT and our members, while outlining how we are positioning the co-operative for the future. The reality is that forestry growers continue to face significant pressures. obvious short-term relief on the horizon. NCT sits squarely at the centre of this system. We are dependent on grower supply, exposed to logistics inefficiencies, operating in price-constrained markets and built around volume throughput. The reality is simple: if growers are under pressure, NCT is under pressure. Against this backdrop, NCT sees the current environment creating a number of strategic tensions that will shape not only our future, but also the future of our members. 20 21
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