N E W S & V I E W S • S E P T 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 • Tree Farmer Award • NCT Profile • The three Me’s N U M B E R 1 1 1 • S E P T E M B E R 2 0 2 4
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N E W S & V I E W S • S E P T E M B E R 2 0 2 4 3 NCT’s Tree Farmers of the Year, Khethezakhe N. Zulu and André de Waal
4 Khethezakhe obtained his matric at Nokhalela High School in the Ngudwini area, where he was born. He completed his schooling in 1990 and then moved to Durban to seek employment. There, he secured a temporary job at a supermarket. In 1993, Khethezakhe began teaching at Ngudwini Primary School while enrolled at Unisa to pursue a formal teaching qualification. However, he never completed his qualification due to financial and time constraints. At the time he dropped out, he was juggling studying, teaching, and part-time forestry work. He ultimately decided to leave both teaching and studying to commit fully to the timber industry, a field he was passionate about and one in which he could work for himself. His journey in farming began in 1993, when he started planting sugar cane in the Eshowe area with assistance from the sugar industry, a programme facilitated by his brother, who worked in the sugar industry. The land he farmed was inherited from his father and located near their home. During this time, he also informally assisted with harvesting timber plots for small growers in his area. In 1998, he transitioned from sugar cane to timber, planting approximately 9.59ha of gum trees. In the same year, Khethezakhe founded a transport company specialising in transporting timber for local growers. He started with three long-haul trucks and became a full member of NCT in 2000, establishing himself as a recognised transporter. Timber farming brought him significant achievements: he married in 2000, had two children, bought five vehicles and three trucks, and purchased a large Congratulations to Khethezakhe N. Zulu and André de Waal for being named NCT’s 2024 Tree Farmer of the Year winners in the Small Grower and Commercial Grower categories, respectively. Our deserving winners each received a chainsaw, generously sponsored by PMB Power Products and Stihl Pietermaritzburg. This prestigious award, first presented in 2001, recognises farmers who have significantly cultivated and improved their operations. Khethezakhe N Zulu and André de Waal have been honored with the prestigious Tree Farmer of the Year awards in the Small Grower and Commercial Grower categories, respectively. This award recognises their exceptional silvicultural practices, environmental management, and operational enhancements. Small-scale Tree Farmer of the Year 2024 – Khethezakhe N Zulu Khethezakhe N Zulu receives a Stihl chainsaw from
N E W S & V I E W S • S E P T E M B E R 2 0 2 4 5 house for his family in 2005. He also refurbished his childhood home. Through his timber business, Khethezakhe has been able to send his son to university, who is now a Chartered Accountant working in Cape Town. He started his timber business with two chainsaws and eight employees and currently has four chainsaws and a permanent staff of 12, all from the local community. They handle harvesting, debarking, and loading. He provides comprehensive services to small growers in Eshowe, including harvesting, short haul, and long haul to the mill. In addition to his business ventures, Khethezakhe serves as a pastor in his church in Eshowe. He takes pride in conducting ethical business with his clients and enjoys helping his community. Amidst logistical challenges, Mr Zulu has found an innovate transport solution Expectional coppice management Healthy, mature trees which were well looked after from a young age Properly cared-for trees experience significant growth. Well kept fire-breaks
6 Every year NCT recognises the efforts of their members by awarding the Commercial Tree Farmer of the Year award to a member who fulfils the following criteria: • Environmental management, including monitoring of TOPS species. • Good silvicultural and harvesting practices, including roads and fire protection. • Social responsibilities. • Other land management with regards to nontimber products. The finalist for 2024 proved that they were all worthy nominees with well-run operations showing passion for their farms and the future in forestry. The winning member for 2024 is Delft Forestry (Pty) Ltd, a family-owned and well-run business in the Piet Retief area. Tito and Desire Vorster along with their daughter Monique and her husband Andre De Waal run a well-oiled and maintained business comprising two farms known as Delft and Lodewykslust Estate. The farms total 4 500ha in size with 2 400ha planted to Eucalyptus grandis, dunnii, smithii and grandis x nitens clones (600ha at Lodewykslust Estate) and 1 800ha to Acacia mearnsii. Numerous attempts have been made at Commercial Tree Farmer of the Year for 2024 – Delft Farming (Pty) Ltd establishing Eucalyptus species at Delft to no avail, Black Wattle is the only species that will grow at Delft, which Andre notes is assisting with fire management due to the distance between the farms and the time taken for more crews and equipment to arrive in the event of fire. In addition to the timber at Lodewykslust Estate there is an essential-oils plant where 200ha has been planted to Tea Tree, Eucalyptus radiata and E. smithii for oil Production as well as 150ha of arable land under pivot. The arable land under pivot was the saving grace for Lodewykslust Estate after the entire farm burnt down shortly after being purchased and became the sole income for the farm survival. Today, Lodewykslust is a productive wellmanaged farm. If you didn’t know of the farm’s history, you wouldn’t believe that the entire farm was burnt when driving around. Although forestry is the primary activity for Delft Forestry, the introduction of essential oils and the Simbra herd in recent years have added value to the operation, so much so that 37 permanent staff positions were created for the essential-oil business alone. The essential oils are part of the Fair for Life certification programme for organic growers, André de Waal, Tito Vorster and Hayden Hutton
N E W S & V I E W S • S E P T E M B E R 2 0 2 4 7 which promotes fair trade for producers and workers who are at a socio-economic disadvantage to access a wider range of social and economic benefits – such as preferential pricing for the oil. A portion of the sales’ price is retained by the certification organisation, which is then paid out for social projects that are decided on by a committee made of up of staff and community members who have been voted into this position by the community. Apart from the permanent staff positions on Lodewykslust Estate, the community is also benefitting from the essential oils. Forestry activities take the environment into consideration during the entire rotation starting from cool burns in preparation for planting. This is achieved by the removal of all the heavy fuels that are used for fueling the kettle for the distilling process, as well as firewood for the community. The pitting and planting operations create seasonal employment and allows Delft Forestry to capitalise on the growing season to replant all the temporarily unplanted areas as quickly as possible, so the growth season is maximised and the seedlings are well established to handle the Piet Retief winters. Having the essential oil certified as organic the use of pesticides is kept to a minimum thus resulting in manual hoeing and slashing to control the weeds in the compartments. Areas with heavy fuel loads are disked before winter ensuring air flow through the compartment and assisting with fire protection. Coppice compartments that are replanted are de-stumped to remove the stumps thereby assisting with access for disking and fire suppression. Essential-oils plant Kettle fuel Combination of fire and weed management by means of disking
8 Substantial work has been done on removing invasive Alien Species (IAS) from the open areas around the farms, use of the Working on Fire crews trained in the removal of IAS has been beneficial, resulting in these areas now being in a maintenance phase. These areas have been rehabilitated to grassland used for the cattle’s grazing. Andre is of the firm opinion that the cattle grazing has assisted with the erosion by breaking down the sides of the dongas allowing the grass to reestablish in these areas. Open areas that have been rehabilitated Situated in the Piet Retief area, the occurrence of wildfires is a serious risk, so a lot of planning goes into the fire-protection on the farms. Wattle is planted around all the open areas to act as a natural break, thereafter the Eucalyptus compartments are planted. A quick response to fires is critical so the roads’ network is well maintained, where necessary roads are gravelled and the farm’s tractor loader backhoe is kept busy opening drains and repairing areas damaged by rains. Stream crossings are constructed with old concrete railway sleepers, Simbra cattle
N E W S & V I E W S • S E P T E M B E R 2 0 2 4 9 which has assisted in reducing maintenance costs for the farm vehicles as they no longer drive continually through water. Nothing goes to waste at Delft. The leaf material that has been distilled is converted into compost used for the essential oil plants. Delft Forestry excels with their social responsibility and has invested time and resources to assist the communities not only bordering the farms but Piet Retief as well. All staff members are trained through a local service provider in Piet Retief ensuring that all staff are equipped with the right knowledge to fulfil their responsibilities on the farm. Local schools in Moolman and Delft have been assisted with the building of classrooms, where the Maranatha school was assisted with solar and an online real-time internet facility. Delft contributes to a feeding scheme with the local church that feeds 120 people every Sunday and have purchased a new bakkie for the scheme to ensure they continue with much needed assistance. Access to potable water is a need in all communities and Delft have assisted with the drilling of numerous boreholes and tanks within the neighbouring communities which have been gratefully accepted. Composting operation Feeding scheme Food donations Social School donations
10 The 75th Annual General Meeting was one of contrast. It was celebratory and giving thanks to 75 years of linking members to markets on the one hand, and on the other acknowledging our vulnerability when real disaster strikes. The Richards Bay Mill fire was front and centre of all the reports as this has had the most significant impact on NCT and its members in our 75 years of existence. The Chairman, Vernon Schefermann, paid tribute to all the role players, who fought the fires at ground level and elsewhere. “The true spirit of our Co-Operative was revealed in the people,” said Mr Schefermann. He further commented on how plans were already being made to rebuild and improve, before there were talks of insurance and how NCT would be doing this. Mr Schefermann highlighted the role NCT has played during the year in assisting the bark industry and NCT Wattle growers by taking in timber and keeping it on depot or redirecting it to Durban. NCT also assisted Gum growers with the special mobile chipper project in Richards Bay. He reflected on the other challenges NCT has been facing as a result of the Durban Wood Chips port-loader accident as well as other issues experienced with Transnet. General Manager, Danny Knoesen also highlighted the impact of these catastrophic 2024 Annual General Meeting – Jean Simpson – Manager Corporate Services – events, but sketched a vision of hope as both the Richards Bay and Durban operations should be back in production shortly. On the back of this he advised that NCT’s customers are eager to start taking wood chips from NCT with a full order book for the year ahead. Other glimmers of hope include the new life that is coming through Transnet with new leadership, the insurance proceeds that are coming in in tranches, possible new markets coming online both domestically and internationally, and a continued exploration of other business opportunities. When considering the financial results, NCT CFO, Kerry Moffett, reported that overall, the NCT results are better than expected in a year filled with unexpected tragedy. The annual revenue had declined from R3.2 billion in the previous year to R2.9 billion this year. Not too bad considering that Richards Bay had been out of production for five months as at yearend. This translated into a profit before tax of R80.3 million for the group. This will however be set off by the farming and other adjustments which will ultimately result in a tax loss which can be carried forward to be set off against the insurance proceeds. She concluded by assuring the members that NCT still has a healthy balance sheet. A well-attended 75th Annual General Meeting
N E W S & V I E W S • S E P T E M B E R 2 0 2 4 11 Keeping with tradition we concluded the meeting with celebrating the dedication of our members and their timber supply through NCT. This included eight members who have been journeying with NCT for the last 75 years. We celebrated our Tree Farmer of the Year recipients, Khethazakhe Nkosingiphile Zulu who received the award in the Small-scale Grower category and Delft Forestry (Pty) Ltd in the Commercial Grower category. Their operations are exceptional and a great example of sustainable forestry. After the formal meeting, NCT members were addressed by Pierre du Plessis who shared his thoughts on why “Chaos can be a Gift”. He gave some practical tools on how to break anxiety: Draw three columns on a piece of paper: Column 1. Write down the disaster, fear or event that might happen. Column 2. Write down what you can do to prevent it from happening. Colum 3. Write down what you will do if it does happen. Then file your plan and let the paper do the worrying for you. Following the AGM, the Board of directors reappointed Mr Schefermann as Chairman and Mr Day as Vice-Chairman. We bade farewell to Mrs Juanita Mason who stepped down as director, and welcomed Mr Ben Seele who was co-opted to serve on the Board. In 75 years, we have much to be grateful for and if this year has taught us one thing, it is this, the more things change, the more they stay the same. NCT has faced plenty of adversity and tragedies in the last 75 years but, through cooperation, creativity, and a bit of luck NCT can only grow stronger. NCT Chairman Vernon Schefermann during the cake-cutting ceremony Guest speaker Pierre du Plessis delivering his inspirational talk – “Chaos is a gift” NCT 75th anniversary celebrations
12 55 yrs Ian Hill, Colin Hohls, Carl Seele 60 yrs Eric Lewis 70 yrs Tracy Woerner 25 yrs Peter Venter, Juan van Rooyen and Philip Day 30 yrs SM Ngobese 50 yrs Sean Gallagher, Stephen Gallagher 75 yrs Peter Symons, Elizabeth Rommelspacher, Andrew Mason Long-service awards 25 years Benvie Pty Ltd Chonco Muziwandile De Lange J S Emerald Dale Farms (Pty) Ltd HMU Farming CC K B Day (Pty) Ltd Avalon Farms Kohlmeyer Farming (Pty) Ltd L.A Hill Dealers (Pty) Ltd T.S Masikane Construction Paardeplaas Trust Pamp Investments CC Pedlar Agri (Pty) Ltd Politiek Boerdery (Pty) Ltd S EN N Boedery Thibane Trust Makatees Boerdery Bk Brushwood Trust Van Eeden Projects Trust Estate Late J S Van Rooyen Arbor-Care (Pty) Ltd Zimu M.P Zondi D.A. 30 years Dlamini S.N. G & W Farming Hein D.A K And F Sawmills CC Ngobese Simanga Moses Ortmann H.T. Treetops Farm CC Bryans Seedlings CC 35 years Malton Farm CC DP Shewan And Sons Imraan Kadwa Enterprises CC Karmar Farming Trust Klingenberg G.W SVR Farming (Pty) Ltd 40 years Elges W.E. Umfolozi Sugar Planters Limited Van Romburgh J.E. Wichmann Eckhard Heinrich 45 years Beaufort Sugar CC. Cramond Forests (Pty) Ltd Freestar Trading CC Brasfort Park Farming WH ELS T/As Nandi Mission PDB Trading CC Thorpe T 50 years Mark Gallagher Family Trust Stephen Gallagher Family Trust Rittersgrun Trust 55 years Hohls Farming (Pty) Ltd Mabondela Forestry (Pty) Ltd Myddelton Estates The Seele Properties Trust 60 years Fairfield Estates (Pty) Ltd Jindon Farming Partnership JMB Harries Farming CC Lewis Farming (Pty) Ltd Peckham Estate (Pty) Ltd 70 years Marchmont Farm Partnership K. Woerner CC 75 years Bee I.H. Domleo R.E. Fortmann Rupert Heinz Holme Lacy Farms CC R.W Schroder Family Trust The Hiltonian Society Wackem Trust WR Farming
N E W S & V I E W S • S E P T E M B E R 2 0 2 4 13 Harald Niebuhr, Reginald Niebuhr Mthandeni R Ntanzi, Mthondeni H Majola, Bongani M Gwala, Nkosinathi S Ntanzi, Ben Kunene Nkosinathi S Ntanzi , Mthandeni R Ntanzi, Rowen B Majola, Bongani M Mkhwanazi Ntombenhle and Leon Sibusiso Zulu T Bhengu, N Hlophe, KB Mkhize Brian and Ntombi Bhengu Bruce Goatley, Zakahle Msomi, Gawie van Dyk Carl Seele, Guy Soloman Christiaan Smith, Claire van Huyssteen Christine Geldenhuys, Clive Mattison, Dania Engelbrecht, Ryno Martyn, Blanchelle Terblanche Graeme and Sue Freese Spotted at the AGM
14 Growing trees for Pole markets – Craig Norris, NCT’s Tree Farming Manager – Eucalypt varieties to plant E. grandis is the preferred species for pole production in South Africa. This species can be grown on sites from the coast up to 1100m, however, it is prone to frost and snow damage at higher elevations. E. grandis is also susceptible to several pests and diseases and in recent years hybrid clones have been developed that are suitable for pole markets, these are generally more resilient to climatic and biotic threats: E. grandis x E. urophylla (GU) hybrids are suitable for subtropical and warm temperate sites and generally produce good poles, they also coppice very well, and 2 stems/stumps can be left- for smalldiameter poles. E. grandis x E. nitens (GN) hybrids are suitable for cool temperate areas and certain clone varieties can be supplied to pole markets. Growers can consult with NCT staff or the seedling supplier regarding which varieties are preferred. E. Vruphilia x E. saligna (GS) and E. grandis x E. longirostrata (GL) hybrids can also be grown for pole production. The annual supply of timber to the South African pole market is estimated at 600 000m³ to 700 000m³. Wooden poles compete with steel and concrete in building, fencing, electricity, transmission and fixed telephone line applications. These poles are an important product for the establishment of fixed infrastructure and provide a niche market for timber farmers. However, pole markets tend to be erratic, and growers must be flexible in terms of felling dates and supply of different commodities. The two main markets to supply are building/fencing and transmission poles.
N E W S & V I E W S • S E P T E M B E R 2 0 2 4 15 Products Building & Fencing: The typical pole length is 7.3m with a small end diameter of 50/100mm. The maximum DBH of trees should be in the range of 14cm, bigger trees will give a small end diameter of over 100mm. Average DBH:10 -14cm Transmissions: The pole length required are between 9.5m to 14.7m with a small end diameter of 140mm to 200mm. The minimum DBH of the trees should be 21 cm. Maximum DBH is not an issue because pulp lengths can be taken out the butt of the log to get the correct pole. Average DBH: 10cm-14cm To accommodate for these markets, one needs to apply the principles of “growing small timber small” and “big timber bigger”. By applying this approach one can achieve 50-75% pole recovery. Recovery of poles also depends on the specification required by the market that is being supplied. 7.3m length cut, 50/100mm end diam. 2.4m length cut, 50/100mm end diam. 60 - 75% pole material 25 - 40% pulp material Poles Pulp per ha 9.7m – 14.7 140/200 7.3 – 8.5m 100/140 2.4m 50/100 (x2) 50 – 60% pole material 40 – 50% pulp Poles Pulp per ha
16 Most timber farmers plant for ‘pulp wood’ rotations and select poles as an afterthought at clearfelling, resulting in less than 40% pole recovery, as shown in the example below. Average DBH:15-20cm 3 x logs of 2.4m Pulpwood 1 x log of 7.3m (50/100) 2 x logs of 2.4m Pulpwood = 30% Poles and 70% Pulpwood Silviculture Sites and Stocking: To achieve maximum pole recovery one must identify suitable sites to grow trees for specific markets. Building and fencing poles should be grown on poorer sites with a Mean Annual Increment (MAI) of less than 20 tonnes. These compartments can be planted at 1666 stems per Ha (2.5 x 2.5m or 3 x 2m) and felled at 5-6 years. Sites with MAI’s greater than 20 tonnes can be identified for growing transmission poles and planted at1666 stems per Ha. These blocks must be thinned at about 5 years to 700 stems/Ha. The thinning’s can be sold as small poles. Alternatively, plant at 3 x 3m and thin to waste at about 4 years. Thinning is done so that the stand produces large, high-quality trees which can be sold at a premium price. The number of trees per hectare affects yield and growth of trees, as do site quality and age. Thinning also helps to prevent stress which may induce pests and diseases. Clear-felling of transmissions can take place at ten years on very good sites and at 12 years on weaker sites. Coppice management: Compartments managed for building and fencing material can be coppiced for 1 rotation before replanting. Coppice should be reduced to 2 stems per stump. Compartments identified for production of transmission poles should be replanted after each rotation. Identifying and managing specific compartments on a timber farm for pole production will result in better pole recovery and profitability. However, pole markets tend to be dynamic and timber growers need to be flexible in terms of felling dates and product specifications to reap the full benefit of supplying these lucrative markets. Thinning of a compartment to allow trees space to produce transmission poles. Thinnings are sold for building and fencing.
N E W S & V I E W S • S E P T E M B E R 2 0 2 4 17 Meet Noxolo Ndlovu, NCT’s pride and joy, who hails from the majestic mountains of Tugela Ferry. Noxolo has been part of the NCT clan for two years. She started as an intern in May 2022 and assumed a permanent position as a Junior Research Scientist in January 2023. As a self-proclaimed professional student, Noxolo brings with her an impressive educational background, having completed all her university studies at Nelson Mandela University (George Campus). She studied forestry at both undergraduate and postgraduate levels and was recently awarded a PhD for her research project that investigated the environmental impact of pesticides within a South African forestry context (see next page). A typical workday for the devoted researcher can start as early as 05:30 or 06:00. She works closely with Innocent Mthembu (whom she refers to as Bab’Mthembu) and Craig Norris to manage NCT’s tree improvement programme. This entails planting and measuring trials, analysing data, and making recommendations regarding the best species to serve current and future markets under No x o l o Nd l o v u the prevailing and anticipated environmental conditions. She also handles the general administration of the programme and engages with various stakeholders and industry partners to meet the research needs of NCT members. Noxolo did not choose forestry; it chose her. Initially studying Dental Therapy at UKZN in 2011, she switched to forestry when Mondi offered her a bursary. Being raised by a single mother, she knew that the bursary would provide muchneeded financial relief. She doesn’t regret the career change, as she feels she was made to be a forester and thoroughly enjoys her job, especially being part of research and development, which is an essential pillar of sustainable businesses. Noxolo comes from a close-knit family and dislikes division or disunity in any relationship, as it drains energy and hinders productivity and progress. She looks up to her mother and grandmother, who have faced many challenges yet continued to love and care for those around them, selflessly giving their best to everyone. As she experiences life and its difficulties, she becomes more appreciative of their presence, strength, wisdom, and consistency. Given more spare time, she would spend more time outdoors and with people from all backgrounds, as she values learning from others. Her favourite pastime is reading non-fiction Christian books. She draws her life motto from a combination of a Bible verse (Zechariah 4:10) and a quote by Martin Luther King Jr.: “Do not despise small beginnings! If you cannot fly, then run; if you cannot run, then walk; if you cannot walk, then crawl. But whatever you do, you have to keep moving forward.” Her latest obsession is walking. Long walks, short walks, morning walks, afternoon walks, evening walks — going for a walk always brightens her day! She is a sucker for beautiful, breathtaking landscapes and loves Cape Town and Switzerland.
18 Pesticides are an important management intervention used by forest managers to control pests and pathogens/diseases. Pesticides have however been under scrutiny in past and recent years and have been restricted for use within forest plantations, especially forest plantations that subscribe to forest certification standards. This presents a challenge to the forester who has to manage a wide array of destructive pests and diseases. What makes this worse is that the process of approving or restricting pesticides to be used within forest plantations has shortcomings. The forest certification schemes base their decisions on conclusions derived from laboratory-based studies and/or field studies conducted in environments that are not reflective of the South African (SA) forestry landscape and operational practice. Both are not ideal. The laboratory studies might overestimate the risk whereas field studies carried out elsewhere might misrepresent the risk that would occur under SA forestry conditions. There is a lack of SA forestry relevant data regarding the impact of pesticides to the environment. This data gap presents a couple of challenges: (1) the industry has no data to refute or confirm restrictions imposed by forest certification schemes; (2) the industry cannot ascertain whether SA forestry pesticide-use poses a risk to environmental values; and (3) high risk areas cannot be prioritized and mitigated. – Noxolo Ndlovu – Research Scientist – A field study was therefore implemented at NCT’s Ingwe Plantation in 2019-2021 to investigate the ‘environmental behaviour’ of key pesticides used within SA forest plantations, and the risk posed by their use to non-target organisms (such as earthworms in the soil, aquatic organisms in streams and rivers, and to human health). Pesticides applied on the site included: • RoundUp (active ingredient (a.i.) glyphosate); • Triclon (a.i. triclopyr); • Claw (a.i. metazachlor); • Kemprin (a.i. cypermethrin); • Custodia (a.i. azoxystrobin and tebuconazole). Over the 26-month study period pesticides were applied as per standard operational practice. Soil samples on the site, and water and sediment samples in nearest stream (Figure 1 – page opposite) were thereafter collected at predetermined intervals to answer the questions: (1) at what concentrations do pesticides occur in soil, water and sediment post pesticide application; (2) how long the pesticides remain/persist in soil, water and sediment; and (3) whether pesticides were moving down the soil profile. To determine the risk posed by pesticides to non-target organisms and human health, data collected from the field study was then compared
N E W S & V I E W S • S E P T E M B E R 2 0 2 4 19 to drinking water standards and lethal values derived for standard aquatic and soil ecotoxicity test species. The most significant result that came out from this study was that glyphosate, which equates to 97% of herbicide use within SA forest plantations, posed a low risk to human health and non-target soil and aquatic organisms. This was attributed to the rapid dissipation of glyphosate in soil and water and/or the low concentrations recorded at the trial site relative to concentrations known to cause adverse or toxic effects. The reader is encouraged to use these results with caution as they were derived from a single study, in one site, and over one growing season. Additional studies, similar to this work but with more comprehensive sampling strategies, covering all environmental components (like insects and bees, avian species and terrestrial species) should be implemented to confirm the findings this study. Figure 1 – Sampling points at the Ingwe trial site Moreover, the results from this work are encouraging as they showed that apart from cypermethrin and metazachlor, all other pesticides applied, when used according to product label recommendations and standard operating procedures, pose a low risk to human health and non-target soil and aquatic organisms. These pesticides can be safely used as a part of an integrated pest and disease management programme. No x o l o Nd l o v u
20 Navigating Suppressed Markets: Legal Options – Natasha Cluckie – Legal Advisor – With the current economic conditions and suppressed markets, more and more businesses are running into trading difficulties and are wanting to explore their options going forward. Political, economic, and regulatory factors play a major role in determining the best option for your business moving forward. The consequences of supressed markets and trading difficulties go without saying and can include reduced profitability, increased running costs and reduced productivity. Set out below are some options to consider in navigating supressed markets and difficult trading times. The severity of the circumstances facing a business will determine the extent of the measures that need to be taken. Some of the measures set out below are more drastic than others and careful consideration must be given before implementing such measures. Conduct a business risk assessment In determining which measure to implement, you need to understand the strengths and weaknesses of your business and the risks facing your business. Conducting a business risk assessment and planning your strategy around those risks will help minimise and/or mitigate against those risks identified. This will identify potential weak spots in your business and allow you to make the necessary adjustments. Commercial considerations Assess your ability to meet your contractual obligations and demands from your customers, suppliers, contractors etc. Reduced revenue streams from suppressed markets may mean you require reduced services from your contractors and/or less labour from your workforce and how you deal with the downturn is important for your future relationships with those customers, employees, suppliers, and contractors, when circumstances improve. A short-term solution may seem attractive, but the long-term damage that may result could be worse for your business. Review your contracts and current arrangements for any penalties or red flags before making any decisions. A declaration of force majeure may assist you in the interim and until you are able to determine the full extent of the impact of the supressed markets and your ability to satisfy the contractual obligations as a result. We would recommend seeking legal advice before implementing force majeure as the consequences may be serious for your business. “Go Lean – Just Enough Employees, Equipment, and Space” Labour options With labour-intensive operations, labour costs form a significant portion of the operating costs
N E W S & V I E W S • S E P T E M B E R 2 0 2 4 21 of a business. With contractual commitments, supply agreements and important long term business relationships, most businesses are unable to implement and effect cost-saving measures quickly. Businesses therefore need to look at where a reduction in costs can be achieved relatively quickly. Although not an easy decision to make, reducing your labour costs will assist in weathering the storm of suppressed markets in the short term. Some options to consider include: • Eliminating overtime and work on weekends; • Placing employees on short time; • Varying employees’ terms and conditions and having employees carry out different roles and responsibilities; • Shift rotation and different working-time arrangements; • Encouraging employees who qualify to take early retirement; • Lay-offs; • Retrenchments (including voluntary retrenchments). When contemplating the implementation of any of the above measures, please ensure that you comply with all applicable employment legislation and your own internal policies and procedures. Insurance options Depending on the severity of the impact on your business, you may be entitled to claim on your Business Interruption Insurance, which can cover potential loss of income and increased expenses when your operations are interrupted due to specified unexpected events. The wording of your policy would need to be carefully considered as it may be limited to unexpected events such as fires and natural disasters only. Financial considerations Have you made provisions for a rainy day, emergency incident or downturn in business? Depending on the nature of your business, if you do have cash reserves, it may be prudent to dip into these cash reserves and keep your business ticking over. It may also be worthwhile contacting your bank and exploring bridging finance or short-term loan options, which could be accessed if required. Business rescue proceedings Another option, although appearing somewhat drastic to consider is placing your business in business rescue. There are positives and negatives to business rescue and which, if utilised correctly, can offer businesses the lifeline they desperately need. If a business is financially distressed (that is, it cannot pay its ongoing creditors in the next six-month period or will become insolvent on its balance sheet in the next six-month period) then directors could consider placing the business into business rescue. A business rescue practitioner would be appointed to supervise the affairs of the business on a temporary basis while the business is being restructured and reorganised, to ensure that the business continues in existence on a solvent basis and is restored to solvency. There must be a realistic prospect that the company can be rescued. If not, then the company shouldbe placed into liquidation. The benefits of business rescue include the business being given a temporary stay on the rights of claimants against the business or in respect of property in its possession. This allows the business some breathing room from its creditors and an opportunity to turn things around. In conclusion The upshot is that suppressed markets are going to be our reality for a while and we need to adapt to the changing environment. Navigating suppressed markets will no doubt involve the implementation of a combination of the measures set out above, and there is no “one size fits all” model. Each business is different with unique characteristics that make it profitable. Tapping into those characteristics while implementing the above measures will be key to weathering the storm – what will work for one business, might be a relative nightmare for the next. However, it is recommended that all options be considered and some “out the box” thinking cannot hurt either. This article should not be used as legal advice as it is merely an opinion piece and for information purposes. Comprehensive legal advice should be sought before implementing any of the options discussed in this article.
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N E W S & V I E W S • S E P T E M B E R 2 0 2 4 23 The catastrophic mill fire at NCT’s Richards Bay was a major blow for the South African Wattle Industry. NCT members in the Eastern Cape seized the opportunity to utilise wattle bark commercially to improve cash-flow and use resources better. Traditionally and historically, the bark would be discarded and forms part of the harvesting residue with no preospect of selling it. With the support of NCT and NTE, Eastern Cape growers are now supplying stick bark as means of revenuegeneration for their forest enterprises. While multiple challenges associated with the transportation of forest raw material (timber and wattle bark) from the Eastern Cape province into Kwa-Zulu Natal for primary processing are evergreen, enthusiastic NCT members from the Stutterheim Office have pioneered a tough journey with bravery and success. Covering an average one-way distance of 550 km from the loading site to the bark market, these passionate growers became the first-ever NCT members to deliver wattle stick bark at the NTE Hermannsburg Factory in the 2023/2024 season. Speaking to one of the growers about this milestone, he said he is very pleased to be able to help support the Wattle Bark Industry and is excited about being one of the first wattle Champions of the Eastern Cape deliver black wattle stick bark from the Eastern Cape to NTE’s wattle extract factory in Hermannsburg, Kwa-Zulu Natal growers to deliver stick bark from the province of the Eastern Cape. Bark adds financial value to the cashflow of wattle growers. The NTE Factory was very satisfied with the quality and presentation of stick bark from the Eastern Cape. These growers are certainly trendsetters and what they have achieved stands to mark the beginning of a promising future for the wattle development in the province. It is expected that more and more members are likely to be attracted and inspired by the champions of the Eastern Cape. Forestry is a long-term investment and what cannot be ignored is that the journey of a thousand miles begins with a single step. With positive cashflow benefits realised by members, there is a strong intention to convert self-seeded wattle plantations into managed stands which will provide better harvest yields and subsequent improved profits for the growers The province of the Eastern Cape is a greenfield opportunity that is appropriate to attract forestry investments. Land is an abundant natural resource and economic opportunities are very limited for locals. Both NCT and NTE representatives believe that large-scale forestry development in the province is long-overdue. Well presented load leaving Komga for NTE. How to bundle prepare and tie bark. Team showcasing a properly prepared bundle. Good quality mature bark. – Lwazi Ngqwebo (NCT) and Ezia Mapipa (NTE)
24 I recently came across the concept of the “Three Me’s”. This concept outlines the fact that we each comprise of three entities. A Past Me, a Current Me and a Future Me. Our Past Me is milliseconds younger that the Current Me and the Future Me hasn’t yet materialised and may never. The Current Me takes centre stage and significantly dictates the standing of the other – Rob Thompson – Member Services Manager – two. Past Me cannot change its standing in any form. It is what it is – literally water under the bridge. Future Me’s standing can only be changed by Current Me, meaning that Current Me literally carries all the cards. When one ponders this concept, it becomes clear that Current Me is most important and it is incumbent on Current Me to ensure that Current Me is well positioned, content and travelling along
N E W S & V I E W S • S E P T E M B E R 2 0 2 4 25 an appropriate and wanted trajectory. Last month, I had the wonderful opportunity to lecture to some forestry diploma students at NMU Saasvedl and was able to indirectly apply the Three Me concept to guide the discussion that ensued. As is my practice, I asked the students to explain to me just how they came to be forestry students. What led them to being here today? Of course, I was hoping to hear stories of forestry type Damascus epiphanies and clarion calls to join the profession and forever to do and die for it. Once again, the almost unanimous and rather disappointing response was: “I got a bursary”. From my perspective, this is concerning as these youngsters have not necessarily followed a calling into forestry and are rather there due to the economic circumstances prevailing and the random way the tertiary education opportunity dice fell. To the university’s credit, an interest in forestry and a desire to adopt forestry as a career path has been instilled in some, albeit in arrears of course entry. Imagine the students surprise however, when I encouraged the group to seriously consider their own individual positions and to change track soonest possible, if, what they were experiencing now, was not to their liking, or not in sync with their life ambition. Their Current Me’s would forever be unhappy if they pursued a forestry career without their heart being totally into it. Something would have to give in the not distant future and the unhappy Current Me would suffer the consequences, as well as the industry proponents who placed trust in the ostensible incoming forestry practitioner. The unhappy practitioner would forever be remonstrated by Past Me for creating a path less liked and Future Me would forever be crying out for Current Me to rally to the call for change and an amended path forward. The Three Me concept is really a useful tool, particularly at a time when we all face an era full of change, both positive and negative and often outside of our sphere of influence. We may for instance be facing the unknowns of a Government of National Unity, or the daunting prospect of retirement, or the potentially painful economic ramifications of an organisational change. We can draw strength for the Three Me’s by consciously accepting that Past Me has absolutely no influence on Current Me despite its protestations and reminders of better times previously. Those times have gone, never to return. Having dealt with Past Me, we can turn our attention to Future Me and apply similar distain to the real non-impact that Future Me has. The noises that Future Me makes to influence, have literally not even happened yet and are realistically subject to so many permutations to make those noises superfluous and mere irritations. We do, however, have every control over Current Me, and with that understanding and recognition, can block out Past and Future Me influences and take conscious decisions that benefit the only entity that really matters, which is Current Me. If one has the objective of keeping Current Me happy on a sustained and ethical basis, the quality of the decision making that Current Me takes, will be top notch. Our young students are now empowered to make a success of a forestry career, and thereby keep Current Me happy, or alternatively change direction to the same end. Prospective retirees will determine the optimum retirement solution and persons faced with economic stress will be positioned to take innovative and far-reaching decisions aimed at keeping Current Me as content as possible. Time literally flies by for everyone and whilst it is great to reminisce about the good old days, too much of this takes the focus away from the reality of change. Gone are the days when youngsters were called into a profession. The modern world hardly ever offers that opportunity any longer. Careers are entered and forged along pathways that continuously evolve and are often without precedent. Change factors appear in our pathway without warning and the monsters of stress and angst live amongst us. In my opinion, it is through focused and ethical engagement with Current Me, that we will overcome positively the unpredictability of what faces us all. Current Me provides the litmus test of our decisions. If a particular decision emphatically works for Current Me, then likely that is the way to go. If Current Me balks at the decision, then potentially one needs to walk away from it. Past and Future Me will simply have to live with the fact that they play no decision-making role and are merely there for the record. Hopefully, Current Me can guide all of us, each in an independent and innovative manner, along a pathway that leads to us leaving an indelible and positive record.
26 Small-scale tree farming on tribal land in the KZN midlands is alive and well, as evidenced by an enthusiastic turnout at a recent NCT field day at the co-op’s Ahrens timber depot, near Greytown. This was a combined field day hosted by NCT’s Greytown regional office for growers supplying their timber to the Glenside and Ahrens depots. Around 80 tree farmers from the surrounding areas attended the field day to hear presentations from the NCT forestry team. The focus of the day was on the need for growers to comply with NCT’s chain-of-custody protocols which are designed to ensure that every stick of timber crossing the weighbridge at the depot is legitimate, can be traced directly back to the grower, and can be verified by NCT head office if required to do so. The reason for the elevation of chain-of-custody assurance to ‘High Priority’ in this little corner of South Africa is the growing raft of regulations around the world that are designed to prevent any illegal or stolen timber from entering the global supply chain, and more specifically, to stop illegal logging and deforestation. Central to all of this is the European Union Deforestation Regulation (EUDR) which came into effect in June 2023. This regulation requires that any product placed on the market or exported from the European Union did not result in deforestation anywhere along the supply chain, and that the products have been grown, harvested or obtained in accordance with the relevant laws of the country where the production took place. The timber grown by NCT’s small grower members around the KZN midlands and in Zululand is sold as ‘controlled wood’ either directly as wood chips to markets in China and Japan, or to the Sappi-Saiccor mill on the south coast which exports the chemical pulp it produces to markets across the world. The wood chips and – Chris Chapman – SA Forestry – Eric and Roger addressing members at the Ahrens timber depot
N E W S & V I E W S • S E P T E M B E R 2 0 2 4 27 FNB’s gift to NCT – 74th annivesary – signed by Siya Kholisi The year 2024 is a momentous one for NCT, as the co-operative celebrates its 75th anniversary alongside 74 years of partnership with FNB. This long-standing relationship is built on a foundation of trust and shared history, which has led to quicker decision-making, better management of expectations, and greater efficiency in serving the co-operatives needs. “Our deep understanding of NCT’s business needs allows us to offer customised financial products and services that fuel growth and innovation”, expresses FNB. The partnership between FNB and NCT is more than just a business relationship; it’s a mutual commitment to each other’s success. By focusing on understanding and supporting each other’s goals, we’ve forged a bond that has stood the test of time. Our collaboration has provided NCT with tailored financial solutions, dedicated relationship managers, and continuous support to help achieve its objectives. As NCT reaches th i s s ign i f i cant 75year mi lestone, FNB extends i ts sincere congratulations to the entire co-operative and its people. With NCT’s strong structure, governance, and exceptional leadership, FNB is confident that the cooperative will continue to thrive and reach even greater heights. FNB looks forward to many more years of successful collaboration and shared success with NCT. pulp is further processed abroad into paper and packaging materials or fabric, much of which inevitably ends up as finished products in the European Union. The beginning of this global supply chain goes all the way back to every NCT member tree farmer who supplies timber to one of NCT’s depots – including the small-scale growers harvesting tiny one or two hectare woodlots in Matimatolo. In fact, this regulation impacts upon every single farmer in South Africa that grows and sells timber that is used as raw material in the manufacture of products destined for mainstream global markets. This timber must either be certified by FSC or PEFC – or both – or at the very least must be sold as ‘controlled wood’ with full assurance of the legality of the whole supply chain. Back to the Ahrens field day where the NCT team spelled out their requirements for purchasing members’ timber delivered to the depot. NCT is busy developing an app that runs on a mobile phone which will assist the growers to provide the essential info required to comply with their chain-of custody assurance. This includes taking and uploading a photo of the timber they have harvested before it leaves their plot on the short haul journey to the NCT depot. A marketer of clothing in Stockholm or Rome might request that photo to verify that the product he is selling has legitimate origins. Failure to be able to trace that timber all the way back to the grower would result in the mill gate being shut in the face of the timber supplier. Another area of risk for the ‘controlled wood’ requirements of growers is the short haul transport from plantation to depot. Gone are the days when any old vehicle with wheels – licensed or unlicensed – can be used to haul the timber along dusty district roads from plantation to depot. If the vehicle and the driver and the load are not fully legal and legit, it’s game over. The chain of custody is broken, and the timber cannot be sold as ‘controlled wood’. The mill gate will be shut once again. The growers attending the field day took the news about beefing up their chain of custody assurance well. Some had questions around the difficulties they face in arranging suitable short haul transport, or navigating the technology required to use the app. But those are just some of the challenges that are going to have to be overcome if the timber supply chain is to remain intact.
28 www.nctforest.com
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