N E W S & V I E W S • D E C E M B E R 2 0 2 4 1 L I N K I N G O U R M E M B E R S T O M A R K E T S In this issue • Richards Bay Mill rebuild • NCT FSC Certification renewal • Renewal has arrived N U M B E R 1 1 2 • D E C E M B E R 2 0 2 4
2
N E W S & V I E W S • D E C E M B E R 2 0 2 4 3 The NCT head office and district offices will close at 12 noon on 24 December and re-open at 07:30 on 2 January.
4 From the General Manager Danny Knoesen After recently participating in the annual Woodfibre and Biomass conference in Singapore, it is appropriate to share with our stakeholders the current views with our markets. As always, the international wood chip trade is linked directly to the fortunes of the global pulp and paper industry, Asian pulp prices and, as a result, the general state of the Chinese economy. Hardwood pulp prices have generally been depressed, sitting at around $550 per tonne in China, well down form peaks of $860 in 2022. Paper consumption, especially printing and writing paper continues to decline a little each year. Coupled with increasing shipping costs as shipping lines must meet challenging carbon emission targets, it’s been a difficult 18 months or so for wood chipping companies in general. The anecdotal evidence from our Australian and Chilean competitors outlines how tough they are finding it, and October this year has seen the well-known Brazilian woodchip supplier TANAC cease all its wood chipping operations and exports. Perhaps we chose the right time to have to recover from our fire in Richards Bay. Under these circumstances, NCT has been told by several customers that the importance of FSC certification remains as important as ever, and there are expectations that we are able to increase our offering in this regard. Regardless of the above, NCT has secured a full order book for both Durban and Richards Bay for 2025, as our loyal customers welcome our return to some normality and have quickly secured their required volumes. We have also seen that much interest from India as a buyer has returned, and we are looking to see how best to leverage this against some of the capacity restraints we face. Europe in general is likely to offer little in terms of market opportunity for 2025, as they are faced with an abundance of their own oversupply on top of surplus eucalyptus from Brazilian ports too. Despite a full order book, it does seem that our dollar pricing will remain under sustained pressure into 2025. With Trump winning the American elections, many are now poised to see what happens from Trade Wars 2.0 and whether further tariffs on Chinese commodities and goods into the USA will negatively influence the fragile Chinese economy. Locally Sappi continues to feature as our main customer, and the endeavours we have collaborated on to achieve EUDR compliance is worthy of mention as a glue that hopefully cements our relationship. We have seen PG Bison in the north taking a modest but regular flow of NCT’s member timber and we are expecting further northern markets to open in 2025. Regardless, we continue to be mindful of the need to find alternate gum markets for our members, especially in the south. We expect 2025 to be a year of consolidation for NCT, albeit with a full order book, and a return to full production capacity to support our full member base.
N E W S & V I E W S • D E C E M B E R 2 0 2 4 5
6 On 31 May, while loading the M/V Opera White for a Japanese customer, a vessel passed by the MW8 berth at high speed (6.5 knots), creating a surge that pushed M/V Opera White towards the MW7 berth. This movement caused the ship’s open hatch covers to strike the ship loader boom, resulting in severe structural damage to the loader. As a result, the loading of M/V Opera White was halted due to safety concerns, and the vessel departed with only 80% of its intended cargo. With the damaged loader, all production was suspended on 20 June once the storage shed reached maximum capacity. During this downtime, mill management took the opportunity to complete outstanding maintenance projects. After extensive repairs by Transnet and their contractor, the loader was fully operational as of 3 October, 2024. Since then, two vessels have been successfully loaded: 1. 3 October - Hokuetsu Ibis V88- 41,123 GMT 2. 24 October - Southern Treasure V29 41,116 GMT The loader has performed well with only minor maintenance needed. Transnet has also implemented new safety measures to prevent similar incidents in the future: 1. Ship loading contractors (Transnet Agriport) will now be notified by TPT to lift the boom 30 minutes before a vessel passes. 2. Speed limits for passing vessels and tugs have been reduced. These measures aim to enhance operational safety and prevent further disruptions. (Lenny Naidoo- Mill Manager (DWC))
N E W S & V I E W S • D E C E M B E R 2 0 2 4 7 Rebuilding a stronger and responsive NCT The well-known fire triangle posits that three essential elements are required to sustain fire. These elements are heat, fuel and oxygen. Take away or reduce any one of these essential elements and one can kill or reduce or control the fire. The devastating fire at the NCT Richards Bay mill, occurring at the end of September 2023, certainly illustrated the combined and destructive effect of a huge fuel load (chip and log piles), coupled with heat (chip piles burning) and plentiful oxygen (gale force winds changing direction). This was an experience that no-one in the industry ever wishes to see again and NCT has taken this to heart in the rebuild of the complex. The rebuild process has been aimed not just at restoring the production capacity of the mills. It is focused on prevention of re-occurrence and reaction in the event of a fire occurrence. Prevention of re-occurrence without a yet quantified and proven-beyond-doubt “cause of fire” may seem an impossible task. By applying the principle of the fire triangle however, and engineering means to control at least two of the main elements deemed most manageable i.e. heat and fuel, NCT is actively closing out chances of a repeat ignition event or spread of fire in the unlikely event that ignition should occur. Armed with post-fire experience and learnings, NCT has effectively first embraced a Strengthened Approach, the three supportive elements of which are Reflection, Re-group and – Rob Thompson – Member Services Manager –
8 Repair. Lessons learnt from the fire were listed in detail and plans made to practically engineer and “proceduralise” a strengthened approach into the rebuild. Contributing towards the strengthened approach are fire retardant conveyor belts which are the new norm at the complex thereby reducing chances of mechanical ignition and flame spread. The rebuild also includes enhanced training facilities, improved personnel ablutions and comfortable canteen facility contributing towards staff wellness and ability. In many ways, this strengthened approach forms the springboard towards NCT’s fire Readiness within the complex. The three legs of Readiness are Capacity, Appropriateness (equipment) and Availability (on site). Capable and trained staff, on site, is a critical requirement of Readiness. Currently NCT has a contracted-in team of fully fledged fire fighters together with a rapid attack fire engine responsible for standby and rapid reaction duties. This team will be maintained on site until such time that NCT has its own trained and fire-skilled operatives. Wisdom gleaned from the fire is that not everyone is a fire fighter which is guiding NCT towards providing select personnel with that particular and specialised skill set. Control of fire prevention and firefighting efforts rests on the legs of Strategy, Supervision and Command. These legs are being kept in mind throughout the rebuild process ensuring that personnel, fit for purpose, with designated authorities and skill sets to execute specific tasks, are trained and deployed appropriately. Other than ensuring that NCT meets client woodchip requirements, on time, every time, the most important focus of the rebuilding process is arguably that of Response. So that we never have to experience another apocalyptic fire event, the rebuild must ensure and enable effective Response to an emergency. Our experiences have taught us that the three legs of Response are Reach, Rate and Replace. At the slightest hint of a fire, we are to be able to reach the ignition point rapidly. A high volume 200 mm diameter under surface, water reticulation system, traversing the whole complex, will ultimately provide high water volume fed by a 2.5 million L water reservoir to hydrants interspersed all along the system. Fire boxes containing ready packed hoses and couplings scattered across the complex at strategic points will allow ground personnel to couple into the water source and tackle an ignition without need of waiting for a vehicle to arrive.
N E W S & V I E W S • D E C E M B E R 2 0 2 4 9 A Landcruiser equipped with duel high pressure / high volume rotating monitors, capable of delivering independent directed water steams at 6400 l/min, 80 m far, and propelled by 16 bar pressure, will be used as a roaming attack modem. The trailer it pulls carries the high-pressure pump which couples into any point along the reticulation system. It is certainly clear that this system provides Reach (distance), Rate (high volume) and serves to Replace water by having water on hand literally across the complex. Further enhancing Reach, chip piles will be stacked in a manner to accommodate a tactical road of 14 degrees thereby allowing the cruiser and its monitors access right to the top of the piles. As exciting as it is to watch the re-build of the wood chip production infrastructure, the installation of brand-new cladding on buildings all dressed in fresh NCT livery, gantry columns being “re-sleeved” and gantries themselves being refurbished and modernised, there is a critical and underlying protection and response strategy at play. It is said that one should “never waste a good crisis”. NCT certainly had a crisis, and I can say with huge conviction, that NCT is certainly not wasting it! We are rebuilding and rising from this tragedy stronger, ready, in control, and able to respond far more efficiently, and quickly, to risk elements than ever before in our 75 years of existence.
10 Since the last five years there have been many rapidly emerging technologies that have been adopted by various industries all over the world. It is remarkable how sophisticated these frontier technologies are bringing in a new dawn of how business is being done. Statista reports that over 37% of businesses and organisations have adopted some form of AI as of 2020. This figure is expected to grow exponentially, with PwC predicting that AI could contribute up to £12.56 trillion to the global economy by 2030 (https:// www.pwc.com/AI). One application that stands out as a future value-adding prospect for Forestry would be blockchain Technology. What is blockchain technology? Blockchain acts as a digital notebook that tracks the origin of the data through various activities in a supply chain, providing transparency about where the data came from, who processed it, and how it was collected. This becomes a digital ledger that records and logs in real-time each supply chain activity. The process ensures that everyone involved in a transaction has access to the same information, fostering transparency and trust. For forestry, this means that every step of the timber supply chain can be documented, verified, and accessed by all stakeholders. Once a transaction is recorded, no one can go back and change it. This means that all the steps in getting timber from the forest to the mill are transparent and can’t be tampered with. All the parties involved, such as the farmers, transporters, and the mill, can access the same information, ensuring trust and accuracy throughout the process. This helps everyone make sure that timber is coming from the right source and being processed correctly. Implementing this approach could result in examples such as the following: 1. Timber Harvesting and Logging Data When timber is harvested from a farm, every batch of timber is assigned a unique identifier recorded on the blockchain. This identifier includes vital information such as: Tree species, date of harvest, location (GPS), volume of timber, felling date, certifications etc. This data can be captured using mobile applications and each entry is digitally signed using the farmer’s private key which is secure and ensures authenticity. 2. Transporting Timber Once the timber is harvested, delivery to the relevant market can be arranged. The grower can request transportation from their preferred service provider to efficiently schedule the movement of trucks. The blockchain automatically records this transport request and establishes a smart contract between the timber grower and the transporter. As the timber moves through the supply chain, from the farm to the mill, each step is logged in realtime on the blockchain 3. Processing at the Mills When the timber arrives at the mill, it is logged into the blockchain system using its unique identifier as noted in step one. Quality assurance checks are performed on the received timber. This may involve inspecting the timber for defects and verifying that it matches the specifications in the blockchain. The results of the quality assurance checks are recorded on the blockchain. If the timber meets all standards, it is approved for processing. If there are issues, the results are logged as discrepancies. If a discrepancy is found (for example, the timber doesn’t meet quality standards or doesn’t match the unique identifier), the system recognises this automatically. Once a discrepancy is detected, a smart contract on the blockchain can be programmed to trigger an automatic notification. The supplier receives a notification detailing the issue with the timber (e.g., the specific reason for rejection, quantity affected, and any relevant quality check data). The supplier can then respond to the notification, address the issue (e.g., replace the rejected timber or provide further information), and update the blockchain with the resolution details. – Merisha Bepat – Business and Logistics Analyst –
N E W S & V I E W S • D E C E M B E R 2 0 2 4 11 4. Payment Execution: If the timber is successfully processed, the smart contract automatically executes payment to the timber grower’s designated account, which can include direct bank transfer to the grower’s bank account. Below is an illustrative example that shows how the process works in practice. This example highlights the key steps involved, demonstrating how blockchain technology facilitates efficient logistics and enhances transparency in the supply chain. Source: Blockchain technology for operational excellence and supply chain resilience: A framework based on use cases and an architecture demonstration. Taylor & Francis, 2024. The benefits for NCT Coupled with AI, the data from the blockchain can enhance our analytics by providing realtime information on timber harvested, volumes available, and offer optimised scheduling and routing to ensure efficient deliveries and reduced costs. Prompt action can also occur when there are supply chain disruptions such as mill closures. Is this a practical approach? Not yet. Integrating blockchain technology into existing systems and processes can be complex. The initial transaction costs associated with blockchain technology can be high. As mass adoption grows, these costs reduce with scalability. Currently, FSC is using FSC Trace to provide seamless and verified data throughout the entire supply chain. Built on blockchain technology they can demonstrate conformity with all regulations and compliance with EUDR. https://fsc.org/en/fsctrace Sappi has also explored the benefits of blockchain citing that “blockchain technology could add value to forest certification by offering a new and real-time way to trace wood from our forest” https://www.sappi.com/sappi-teamsup-with-major-global-brands-to-explore-thepotential-of-innovative-blockchain-technology Overall, it is important for NCT to recognise that staying informed about advancements can lead to continuous improvement. While full adoption of every new technology may not be feasible or necessary, identifying value-adding applications enables NCT to integrate beneficial features into its existing systems and operations, allowing the company to leverage the best tools available to support growth and sustainability. A futuristic view on AI in Forestry
12 Corruption is a horrible topic to write about, mainly because it pollutes our news publications on a daily basis. One may be tempted to think that this is an occurrence of our more recent pollical history, however there is plenty of written record of how South African history has been plagued by this for centuries. This is also not just an occurrence well known to our country; both well advanced and developing countries face this issue daily. Not many people know this, but Parliament passed legislation in 2004 to define corruption and set out the consequences for committing corruption. This Act is known as the Prevention and Combating of Corrupt Activities Act no 12 of 2004, (PRECCA for short). Without getting into the legal technical definition, corruption is simply this: giving something, doing something or just promising something to someone in exchange for some advantage for oneself or someone else close to you. This also extends to the one receiving any of this. The Afrikaans idiom: “die deler is so goed soos die steler” comes to mind (the receiver is as good as the thief). One may think that this only involves people in high-power positions, but don’t underestimate those in your employment who may not be in the limelight. If there is an opportunity to abuse your position, power, access to information or resources, or you can influence someone or a process; you can be corrupted. Corruption knows no limits and can take many forms. The most common we know of include bribery, nepotism, cronyism, corporate espionage, hiding scandals, doing something to avoid hardship, favours for jobs, or just sharing in a benefit in exchange for business. PRECCA places a specific obligation on business entities to report corruption to the Directorate for Priority Crime Investigation if the transaction exceeds R100 000. Failure to do this constitutes an offence. The most recent development is even more onerous. As of April this year the legislature included section 34A which places an obligation on all private and state-owned companies to implement measures to prevent corruption. Failure to do this is an offence. So essentially you are damned if you do and damned if you don’t. The Act doesn’t spell out exactly what sort of measures one must take, but as with most compliance legislation, it is best to follow a riskbased approach. This would include: Combating Corruption: Everyone’s business – Jean Simpson – Corporate Services Manager –
N E W S & V I E W S • D E C E M B E R 2 0 2 4 13 • Appointing a champion to oversee this compliance element – usually the compliance officer (keep in mind that the board and senior management are still ultimately responsible) • Doing a risk assessment • Formulating policies and procedures to regulate company practices and employee behaviour • Implementing preventative measures where possible • Providing staff with awareness training on what corruption is and training them on the policies and procedures • Finally review the measures against the risks identified. Some of the most obvious risk areas include: • Any person involved in procurement • Accounts departments • Points of sale like the weighbridges (this may include abusing timber tickets) • Your representatives responsible for the sale of product • Directors and Senior management This list is not exhaustive, and one must rather ask: “who has some sort of authority where they can abuse the system?” For many years NCT has taken a very strong stance against corrupt activities and since April we have enhanced these measures. • For the last few months NCT has rolled out some awareness training to staff; • We updated certain commercial agreements to provide for cooperation between contracting parties to eradicate corruption; This article should not be used as legal advice as it is merely an opinion piece and for information purposes. If any member of the public is aware of any instances of corruption involving NCT, we request that such reports together with evidence be submitted to our Internal Auditor for investigation. Fraud and Corruption hotline: ianctfor@gmail.com or 082 801 1369 • We have started updating policies and procedures, and we rolled out signage at all sensitive points to make the public aware of NCT’s stance on corruption and the steps people can take to report it. In my opinion I believe that by taking these measures a business can illustrate that they are not simply sitting back and letting corruption run rife. At this junction I know what you are thinking, that if only those in power could set the right example, then perhaps South Africa would be a less corrupt country. Why should we be bending over to implement these measures when those who make the rules break them. I would agree with this sentiment, but also wish to add that each of us has the power to do the right thing and, as such, has the responsibility to set the ethical tone in our businesses.
14 The NCT FSC Forest Management Group entered a new five-year certificate cycle this year. This required a re-assessment audit to be completed by the certification body (CB). NCT has, in the past, used one CB for the FSC Chainof-Custody (CoC) Certificate and another for the Forest Management Group Scheme certificate. For various reasons this aligned to the same CB for both certificates in recent years. For this and various other reasons, it was decided to use the opportunity of the start of the new cycle to separate the forest management and CoC certificates between CBs again. The audit was conducted during the week of 26-30 August 2024 with the two auditors visiting ten members of the NCT FSC group. One auditor was based in Pietermaritzburg and audited farms in the area, while the other auditor started in Paulpietersburg and then travelled from Vryheid to Melmoth. Both auditors spent the last two days at NCT head office auditing the group procedures and records. NCT FSC Group management also took the opportunity to re-organise the group slightly, with the NCT Tree Farming farms organised into two Regional Management Units (RMU), i.e. RMU North and RMU South. This was possible because of the uniformity of management across Tree Farming. The move of these farms to RMUs, changes the audit intensity slightly as the formula for calculating the audit sample size changes. As a re-assessment audit, the application of all ten FSC principles were re-evaluated across the group. The group fared well during the audit with two minor corrective action requests (CARs) noted. The first CAR relates to the control of chemical usage where a discrepancy between stock and issue records at a member was noted. With the focus that FSC places on the control of chemical usage, this issue was deemed to rate a CAR. This means that members will have to ensure that their chemical store records are accurate at all times. The second CAR was raised against the requirement that workers are supervised to ensure they implement their tasks safely and effectively. Evidence of unsafe felling techniques (from felling cuts) was found at two members. Both members demonstrated appropriate training records. As no satisfactory explanation could be found why the prescribed procedures were not followed, this led to the conclusion that the cause was a lack of supervision. To close this CAR, members will have to demonstrate that workers are adequately supervised, e.g. by documenting completed checklists. Essentially, members will have to show infield that felling cuts on stumps are correct. On the positive side, the auditors noted several strengths across the group. These included members being very much “hands on” managers with strong management, excellent weed control and documentation. The chocking of wheels of heavy stationary vehicles was noted as well. The commitment of the members to the NCT FSC Group and the FSC principle is a strength for which group management is grateful. This makes the audit run more smoothly and is the main reason for the high level of compliance of the group, as shown by these audit results. – Colin Summersgill – Certification Manager –
N E W S & V I E W S • D E C E M B E R 2 0 2 4 15 Imagine a familiar household hero: a white or grey cube-shapedmachine, tirelesslyworking its magic to transform mountains of dirty laundry into fresh, clean clothes. This reliable washer, with its powerful drum and splashy spin, is like a spa day for garments. A few suds, a swirl, and a rinse and everything feels renewed. To keep the magic alive, we simply supply it with detergent, fabric softener, electricity, water, and a steady diet of dirty clothes. In Afrikaans, there’s a saying: “van lekker lag kom lekker huil.” This means “from hearty laughter comes hearty tears.” Growing up, my siblings and I often experienced this firsthand. Many of our joyful, silly moments ended with something broken and the fun quickly shifted to frustration. This expression reminds us that good things can end, often unexpectedly. We seldom consider an endpoint when buying our first washing machine. We connect the power, set up the hoses, and run that first load without thinking of a future breakdown. But inevitably, one day, the washing machine will give out, whether suddenly or after signs of wear and tear. What’s your plan for when that day comes? Have you budgeted for a replacement? Hopefully, this makes you think – but not jinx the lifespan of your current machine! At 23 years old, my own washing machine is still going strong, but only because I’ve done some thoughtful maintenance and made economic decisions about which parts to repair. Organisations work similarly. Key positions are essential to the company’s “cycle”, much like our washers keep us looking presentable. People fill these roles now, but they could suddenly leave for retirement, a new opportunity, or even a lottery win that takes them to a Hawaiian beach. What’s the plan if that happens? Unlike a washing machine, we can’t keep spares in a closet or easily raise emergency funds to replace people with specialised skills. This is where succession planning comes into play. Just as with your washing machine, the day will come when key personnel move on. Our senior management regularly reviews upcoming retirements and other foreseeable departures to prepare for these transitions. Because of our relatively flat organisational structure, we can’t always keep “spare machines” waiting in the wings, which is why we must plan several years ahead. But what can employees do to support succession planning? Surprisingly, quite a lot. Here are some ways employees can help ensure a smooth transition when the time comes: Mentor others: especially newly appointed or less experienced colleagues. Invest in your development: attend relevant conferences, take job-related courses, and participate in industry training programs. Lead and learn: lead projects or teams and take opportunities to shadow senior leaders. “Manage up” effectively: a vital soft skill to enhance workplace relationships and outcomes. Managing up is a concept that can make both your job and your manager’s job easier. It’s not about going over your manager’s head or trying to “manage” them. Instead, it’s about understanding what your manager aims to achieve and how they work best, allowing you to build a productive, mutually beneficial relationship. Here are a few ways to practice this skill: – Understand your manager’s goals. – Build a positive working relationship. – Adapt to their communication style while sharing your own preferences. – Anticipate their needs and communicate proactively. In addition to skill-building, there’s one more essential part of succession planning: Quality Management Systems (QMS). This may sound corporate, but it’s simply about documenting your processes. If you won the lottery tomorrow and booked that one-way flight to Honolulu, would your replacement have a roadmap to follow? Documenting procedures for your role not only helps the next person but also strengthens the organisation’s continuity. Think of it as your legacy, a structured, welldocumented guide that supports NCT’s success for decades to come. So, as you and your washing machine go through the cycles of life, consider how you can contribute to succession planning. Reach out, learn, grow, and take part in developing our future leaders. Here’s to many more years of successful washes and succession planning! Succession Planning: Preparing Today for Tomorrow’s Needs – Neels Reyneke – HR Manager –
16 Clonal hybrids are becoming essential to forestry businesses to enable them to adapt to evolving markets and a changing environment. A changing climate, emergence of new pests and diseases and volatile markets call for tree plantations that are resilient, adaptable to a wide range of climatic conditions, and can serve multiple timber markets. Clonal hybrids combine favourable characteristics of the two parent species and often result in hybrid vigour. Hybrids are generally deployed as cuttings (clones) because this allows for the selection of the best individual and then multiplying through a cutting programme. The form and uniformity of clonal hybrids is generally good making them suitable for diverse markets. NCT manages a programme (Hybrid Clone Consortium-HCC) to screen hybrid material and select individuals for clonal deployment. Member nurseries contribute to funding this programme and have the rights to propagate and sell material developed by HCC. Local nurseries that are part of this programme include CPS Seedlings, Ezigro Seedlings, Sunshine Seedlings and Sutherland Seedlings. Several new clones are now available for purchase from these nurseries. New Eucalyptus clones in the market Warm temperate and subtropical clones: GU 400 and GU 412: These two clones are recommended for the Zululand coastal plain. They are tolerant of various pests and diseases such as Leptocybe invasa. GU 400 is an excellent volume producer, whilst GU 412 has better form. These clones should not be planted at mid-altitude, warm temperate regions due to susceptibility to Elsinoe masingae. GU 411, 483 and 488: These clones were selected from trials of the old GU 111, 083 and 088. The old clones were mixes of hybrids and the trials were screened to identify good trees that were then fingerprinted and given a new identity. GU411 is a good volume producer for midaltitude, high potential sites. It is essentially a cleaned-up clone from the GU 111 mix. It is expected to have similar site requirements and performance to its ‘predecessor’. The clone is tolerant of Elsinoe masingae and has potential as a pole producer. GU 483 should grow well on mid-altitude, warm – Noxolo Ndlovu – Research Scientist and Craig Norris – Tree Farming Manager –
N E W S & V I E W S • D E C E M B E R 2 0 2 4 17 temperate sites. It is tolerant of Elsinoe masingae and has good potential as a pole producer. GU 488 is a cleaned-up clone from the old GU 088 stands. The clone is suited for mid-altitude, warm temperate sites. It can grow well on marginal and/or drier sites. It is also tolerant of Elsinoe masingae. SU 107: SU 107 is a E. saligna x E. urophylla hybrid originally bred for sawtimber. It is an excellent volume producer at mid-altitude, high potential sites. The clone is accepted in sawtimber, pole and pulp markets. It has a higher wood density compared to E. grandis and the GU hybrids and will thus give better tonnes over weighbridge. GL 222: GL 222 is a E. grandis x E. longirostrata hybrid with excellent form. It grows well on marginal, dry and hot sites. This clone has a similar density to black wattle and will thus give good tonnage over weighbridge. The logs have low splitting, but the high density make chemical penetration into the wood difficult, and pole markets may not accept this hybrid. However, it has potential for peeler log markets. The clone is tolerant of Elsinoe masingae. Cold-tolerant clones: GN 389, 311 and 350: GN 389, GN 311 and 350 are new generation E. grandis x E. nitens hybrid clones that have recently been released to nurseries. GN 311 and 350 have been tested for pole suitability and have acceptable splitting, form and penetration. GN 350 grows best on sites with deep soils, good rainfall and above 1200m elevation. GN 311 can be planted on more marginal sites above 1100m. These clones should be kept away from snow-prone areas. GN 389 is an excellent volume producer suited for pulpwood. Growth and yield of this clone is significantly better than GN 2107. It should be planted on high potential sites. GS 211: This is a novel hybrid between E. grandis and E. smithii with good pulping and paper making characteristics. The clone is tolerant of Phytophthora and can be grown on frost-free sites from 800m to 1300m. It has outperformed seedling and clonal controls in trials planted in this altitude range. Samples have been sent to HKP (NCT wood chip customer) for pulping tests to verify if they will accept wood from this hybrid to be mixed with E. smithii wood chips. How to plant clones • Take special care to prepare deep (30cm), friable pits to encourage sinker roots and avoid J rooting. Cuttings lack a strong tap root. • Make sure that the root plug is not rootbound, a healthy well consolidated plug with healthy white shoots will result in a balanced root system. • Most clones have plugs with growing medium that drains rapidly, make sure that the plug is saturated before planting. This is especially important for paper-pot plugs. • Ensure planting teams are well trained and supervised. Blanking (gapping) of newly planted compartments should not be required if the correct planting technique is followed. Final thoughts: • For the best results, plant clones on high potential sites. Avoid marginal sites and shallow soils. The exception to this rule is hardy clones such as GL 222 and GU 488. • Warm temperate/subtropical clones should be kept away from frost and snow prone areas. • GxNs should not be planted below 1200m due to susceptibility to T. destructans. • Clones are expensive. Farmers should employ the best site preparation, planting practices, and weed management to get a good return on their investment.
18 Ro n e l Mood l e y a nd L i z Bo t h a Introducing NCT’s Inspiring Women in Finance At NCT, our finance team is empowered by talented women whose dedication and expertise drive the organisation forward. Among them are Ronel Moodley and Liz Botha, two remarkable finance professionals bringing a wealth of knowledge and passion to their roles. Each, in her own unique way, contributes Liz Botha Ronel Moodley to our commitment to accuracy, compliance, and financial integrity while supporting NCT’s mission to serve its members and the industry. This profile celebrates the incredible contributions of Ronel and Liz to NCT and highlights how their diverse experiences and values make them integral to our team.
N E W S & V I E W S • D E C E M B E R 2 0 2 4 19 Ronel Moodley Ronel Moodley joined NCT in June 2021 as the Group Management Accountant and currently holds the position of Group Finance Manager. In her role, she ensures the organisation’s financial data is processed accurately, in line with both internal policies and applicable accounting and statutory frameworks and is presented in a format suitable for stakeholders’ decisionmaking. Her daily responsibilities vary depending on organisational needs and include reviewing financial reports with relevant documentation and reconciliations, evaluating and authorising statutory returns, processing payments to timber and other suppliers, and reviewing payroll and related payments. She also keeps up to date with legislative changes. Ronel finds it highly rewarding to contribute to NCT, South Africa’s largest co-operative, as it allows her to add value to NCT members and the industry. An honours graduate in BCom Accounting from the University of KwaZulu-Natal, Ronel completed her articles with Deloitte & Touche and qualified as a chartered accountant in 2010. After her articles, she joined a local manufacturing company, where she swiftly advanced to a seniorfinance-manager role, becoming instrumental in the company’s decision-making processes. Ronel enjoys the dynamic nature of the profession, which offers endless chances to learn and grow. However, before discovering her passion for finance, she had a love for sports and would have considered a career as a sports journalist or presenter, appreciating how sports have the power to unite and inspire. As an only child, Ronel shares a close bond with her parents, who instilled in her the values of hard work and sacrifice. Family-oriented and married for 12 years, she cherishes memories of childhood gatherings with her 30 cousins on her mother’s side, especially the festive Christmas celebrations filled with food, laughter, and games. Ronel is a fun-loving individual with a strong dislike for rudeness and inconsideration. She enjoys staying fit, maintains a positive outlook on life, and shares a love for travel and cooking with her husband, with Thai cuisine as their favorite. Their favorite travel destination to date has been Thailand, known for its natural beauty, amazing food, and humble people. Her guiding mantra is: Be kind, stay positive, and live each day to the fullest. Liz Botha Meet one of our newest team members, Liz Botha, our Group Management Accountant. In her nine months with us, Liz has adeptly managed this role, supporting NCT’s expanding financial administration needs. She oversees NCT’s monthly management accounts across farms, mills, and head office, as well as the Group’s monthly consolidated accounts, Capex and WIP, forecasts, budgets, and various analysis reports (including cost per tonne, sales and purchase comparisons, and departmental reports). Liz holds a BComm from the University of Kwa-Zulu Natal and a CIMA qualification in Management Accounting. She brings extensive finance experience across diverse industries, including retail property, steel construction, dairy, chicken farming, and hospitality. An outdoor enthusiast and animal lover, Liz originally dreamed of working with animals. Though she didn’t meet the criteria for Onderstepoort or to qualify as a game ranger at a time when few women were accepted into the Parks Board, she now reflects that her journey has led her to a place she wouldn’t swap. The experiences and challenges along the way have shaped her into the person she is today. Some of Liz’s fondest memories come from growing up on a farm, where she was always outdoors and active, often riding on horseback or camping with family. She values the people she’s encountered throughout her life, believing that everyone enters our lives for a reason or a season. She cherishes shared memories, keeping photos dating back 15 years on a memory stick. Family remains central to Liz, who is close with her dad, brother, and sister, even though her mother has passed away. An adventurer at heart, Croatia is Liz’s favorite travel destination, but when she has the opportunity to travel, she prefers exploring new places and cultures. Easy-going and untroubled by minor issues, Liz says all she needs for happiness is a Bible and a good cup of coffee!
20
N E W S & V I E W S • D E C E M B E R 2 0 2 4 21 NCT experienced a major and destructive setback exactly a year ago. Our chip mill complex in Richards Bay was razed to the ground in an unprecedented and most devastating apocalyptic fire event. Well, early October 2024, we saw the very first wood chips emerging from the now repaired and refurbished chip line, landing on a clean, carbon free and pristine stock-yard floor. Those first few chips will hopefully comprise the start of an immense and impressive commercial chip pile which will effectively restore the full functionality of the chipping complex once again. To all stakeholders in the chip complex, this is certainly a time of renewal, and we embrace and celebrate the restoration of our chipping capability after a long and challenging year. Renewal offers an opportunity for reflection. Looking back on the events during and postfire, one common element is very apparent and that is the resilience displayed by the staff who, by implication, are highly invested in the chip mill complex. The mills’ wellbeing implies their well-being and seeing it reduced to ashes had a profound and, in my opinion, an eye-opening effect on their psyche. One might have expected a wringing of hands and panic mode to set in. Conversely however, we witnessed hitherto unknown capabilities and positive attitudes emerge. It seems that the brutal and unannounced stripping away of the staff’s essential chip-milling purpose and identity, exposed their inner, yet under-utilised and lesserknown creativity in the face of having to survive the immense crisis that now faced them. Without going too deeply into the traumas and details of the tragedy, it was an amazing experience to see hidden talents and “can-do” attitudes emerge and be applied during the containment, restoration, and recovery phases of the disaster. From the initial and frightening fighting of the fire (over a period of literally two – Rob Thompson – Member Services Manager – weeks); through to damage assessment; liaison with authorities; environmental assessment and restoration; insurance assessments; carbon containment; debris removal and disposal; site clearing; specialised contractor appointments; projectmanagement; stakeholder communication; press releases; replacement equipment sourcing; and a myriad of other tasks and operations, staff demonstrated amazing creativity, adaptation and resilience which was most often outside of their normal job descriptions and quite frankly the organisations wildest expectations of them. This experience has taught us all that a crisis strips people of their previous labels, exposes their hidden assets (which everyone has for the finding) and presents the opportunity for these now-revealed assets, to be applied and add immense value to the collective. The trick is to encourage and allow engagement of opportunity creatively, and outside of the constraints and authorities of normal accepted protocol. This “directed freedom” approach takes courage by both management and the staff members concerned but it definitely works if all levels of the organisation are facing the same crisis. Suddenly problem solving is being addressed by far more people. Multiple viable and potential solutions to complex problems are generated for assessment, these ideas are generated by those most affected by the outcomes, and a sense of ownership develops deeply within all those affected. Moving swiftly on from the mill fire to a recent industry wattle field day. The popular event attracted a number of people from across the industry and afforded the opportunity to rekindle acquaintances and catch up with those last seen in the distant past. Informal conversation topics turned towards the wave of personnel retirements that the industry appears to be facing currently and the ramifications that this may carry for the industry.
22 • Is there an adequate “middle” in the industry to counter the inevitable loss of more experienced personnel? • Will newcomers to the industry receive the appropriate mentorship enabling them to become productive units within the shortest possible time? • What ought we to be doing to ensure that organizational culture and sustainability is preserved during a time of change and “renewal”? I think that some of the answers to these questions are to be found from amongst the experiences of the mill fire. If, for instance, we could adopt the courageous approach of seeing beyond the staff member label and rather tap into creativity and drive inherent in the person behind the label, we should progress in leaps and bounds. I say this would be a courageous step given that we would have to allow an element of freedom to staff to “own” the task on hand and produce a result that may, on occasions, be other than that which was expected. • Mentorship of student foresters would take the form of providing actual operational task situations and the authority to execute actions rather than merely observing others execute and ticking a box. • Incoming foresters should be exposed to a culture of looking beyond qualification and rather towards attitude and aptitude. If from onset students and new foresters are encouraged to tap into and share their valuable creativity and logic (rather than mere rote desktop learnings) we can turn the tide of newcomers joining just for the “job” but rather as a “calling” into an understanding and rewarding industry offering mutual benefits for life. • Organisational strategic and tactical decision processes would solicit the structured inputs of all staff ranks (yes, including labour) rather than merely tapping the intellectual capital of the so-called specialised top echelons. This delving down through the staff layers is bound to reveal nuggets of applicable wisdom that are totally unexpected (and sadly generally ignored currently). • Existing operational silos would be encouraged to break down the silo walls and engage with wider disciplines and values. Such lateral exposure, collaborative thinking, and the resultant severing of habitual and standardised procedure would stimulate fresh avenues of approach and alternative (possibly more innovative) means to achieve objectives. • Most important of all, regular honest and heartfelt staff recognition would become the order of the day. This would not necessarily be via a formal certificate, watch or ceremony. An informal pat on the back recognising effort, or a thank you during a meeting, or a quick e-mail to a deserving recipient, is all that it takes to turn people from being employees into invested partners in effort. • A fair, sound, and transparent succession plan would allow imminent retirees’ opportunity to mentor those following on and fill the middle with confident and productive people able to sustain organisational culture and values and grow productivity levels as staff turnover inevitably rolls over. What the fire has revealed to me is that people do their best work when given the freedom to contribute significantly towards their own destiny. Strict rules tend to curb creativity and a culture of non-recognition of effort merely results in drones churning out the “same old” day in and day out. My challenge to the decision makers within the vast components of our industry is to be courageous enough to embrace a renewed approach. • We do not necessarily need a crisis to effect this. • We can learn from those who have experienced crises and assess which of the lessons learnt can be adopted and applied. From the ashes of our mill fire I have seen revealed the immense inner capabilities of staff at all levels. Now that the smoke has disappeared and the debris removed, we are simply not able to look at staff in the same way as before. It seems as if the rebuilding of the mill has opened our eyes to a renewed vision. Each person involved has contributed in so many unexpected ways that we look forward to the future with a high level of anticipation. If a crisis has allowed us to achieve and learn so much, we cannot wait to see just what the incoming period of renewal will reveal. Don’t be observers. Take courage with us, allow latitude and ownership, recognise achievement and reap the rewards that will definitely follow. Renewal has arrived!
N E W S & V I E W S • D E C E M B E R 2 0 2 4 23 When we think of sustainability, environmental activists often come to mind as essential advocates for protecting the planet. However, sustainability extends beyond environmental concerns to encompass three interconnected pillars: environmental, social, and economic sustainability. This holistic approach is particularly relevant in the South African forestry sector, where the interplay between these pillars is critical to long-term success. The forestry industry is highly dependent on responsible environmental practices. With much of the country’s forestry focused on commercial plantations of fast-growing species like eucalyptus and wattle, environmental sustainability is a key priority. The industry has made significant strides in managing water resources, given that these plantations can be water intensive. The forestry sector now adheres to sustainable water management practices, such as monitoring water use and protecting wetlands, which helps reduce their environmental footprint. Furthermore, the industry has embraced certification through programs like the Forest Stewardship Council (FSC), which ensures that forestry practices promote biodiversity, conserve natural forests, and maintain healthy ecosystems. By meeting these certification standards, the forestry sector has committed to sustainable harvesting, ensuring that forest regeneration keeps pace with consumption. This reduces the risk of deforestation and minimises the impact on local ecosystems while ensuring a renewable supply of raw materials. Social sustainability plays an equally important role in the forestry industry, particularly because of the historical inequalities that still affect many rural communities. The forestry sector provides employment and opportunities for skills development, especially in rural areas where jobs are scarce. Many forestry companies have implemented corporate social responsibility (CSR) programmes that focus on local development, education, and health care for their workers and surrounding communities. These initiatives foster stronger community ties and contribute to social upliftment by providing stable jobs, housing, and access to social services. Land reform and community ownership are also critical elements of social sustainability in the forestry industry. Many forestry companies are working alongside the government to transfer ownership of land back to local communities through various land-restitution programmes. The forestry industry has established joint ventures with communities that have had their land returned to them, helping ensure that the communities benefit economically from the forestry activities on their land. This creates a sense of ownership and promotes economic empowerment among previously marginalised groups. Economic sustainability is about ensuring the industry’s viability in the long-term while balancing profitability with responsible practices. The forestry industry plays a crucial role in the economy, contributing to employment, export earnings, and the production of essential goods like paper. For the industry to remain economically sustainable, companies are constantly seeking ways to enhance productivity while minimising costs. One example of this is the increasing adoption of precision forestry techniques, which use technology such as drones, satellite imagery, and data analytics to monitor and manage plantations more efficiently. By optimising the use of resources like water and fertilisers, precision forestry helps improve yields, reduce waste, and lower operational costs, all while maintaining sustainable practices. This approach not only improves profitability but also ensures that the industry’s environmental footprint remains manageable. Sustainability in South Africa’s forestry industry demonstrates the balance between environmental, social, and economic priorities. Through sustainable forestry management, responsible corporate practices, and innovation, the industry demonstrates how businesses can thrive while protecting the environment, uplifting communities, and ensuring long-term economic success. Sustainability is not just preserving resources—it’s about building a future that benefits all stakeholders, both now and for generations to come. Building Tomorrow Today
RkJQdWJsaXNoZXIy MjgyNjA0