Forestry South Africa Roundwood Sales Analysis for the 2009 Financial Year
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Forestry South Africa Roundwood Sales Analysis for the 2009 Financial Year Roger Godsmark Forestry South Africa February 2010
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Forestry South Africa Roundwood Sales Analysis for the 2009 Financial Year. Roger Godsmark Forestry South Africa February 2010. Analysis of Roundwood Sales and Income Generated 2009. Salient Points to Note. - PowerPoint PPT Presentation
Transcript of Forestry South Africa Roundwood Sales Analysis for the 2009 Financial Year
Forestry South Africa Roundwood Sales Analysisfor the 2009 Financial Year
Roger Godsmark
Forestry South Africa
February 2010
Analysis of Roundwood Salesand Income Generated
2009
Salient Points to Note
• Tonnage sales of 14.261 mt were not only 638 000t below the budget of 14.9 mt but a massive 2 398 000t (14.4%) less than the corresponding figure for 2008.
• Sales across all species were down in comparison to 2008, the biggest decrease being attributable to eucalyptus sales which were over 1.7 mt or 19.6% down on last year.
• In terms of sales per product, all products saw a decline in sales as compared to 2008, the biggest decrease being attributable to pulpwood with a drop in sales of over 1.9 mt (15.5%). Year on year, the biggest decline was that of Euc Pulpwood which dropped 1.4 mt or 17.7%.
• Despite the levy having increased by 16.4% between 2008 & 2009 (110 cents to 128 cents per ton), total income generated of R17.85 million was actually R55 000 less than that generated the previous year. It was also over R1.2 million (6.4%) less than that budgeted for in 2009.
• Overall levy coverage, as one would have expected given the depressed market conditions, decreased from 94% in 2008 to 82% in 2009 *.
*Note: Caution should, however, be exercised with this comparison as it compares DWAF figures for 2007/8 with FSA’s 2009 figures.
The SA Forestry Industry did not escape the ravages of the international economic crisis that came to a head in September 2008.
Roundwood Sales by Species2009
42.4%
8.4%
49.2%
Softwood Eucalyptus Wattle
Total Sales – 14 261 000 tons
Roundwood Sales by Product2009
74.0%
20.4%
1.8%
3.7%
Pulpwood Sawlogs Mining Timber Other
Total Sales – 14 261 000 tons
Pulpwood Sales by Species2009
29.2%
59.7%
11.1%
Softwood Eucalyptus Wattle
Total Sales – 10 559 000 tons
Sawlog Sales by Species2009
92.1%
7.9%
Softwood Eucalyptus
Total Sales – 3 220 000 tons
Other Roundwood Sales by Species2009
35.6%
60.2%
4.2%
Softwood Eucalyptus Wattle
Total Sales – 792 000 tons
Sales Comparisons 2008 vs. 2009Product 2008 2009 Diff tons Diff %
Sawlogs: Soft 2 945 228 2 682 158 -263 070 -8.9%
Sawlogs: Hard 276 704 228 628 -48 075 -17.4%
Sawlogs 3 221 932 2 910 787 -311 145 -9.7%
Pulpwood: Soft 3 433 277 3 079 425 -353 853 -10.3%
Pulpwood: Hard 9 068 340 7 479 602 -1 588 738 -17.5%
Pulpwood 12 501 617 10 559 027 -1 942 591 -15.5%
Mng: Timber : 330 428 261 206 -69 222 -20.9%
Poles :Soft 147 463 116 968 -30 494 -20.7%
Poles: Hard 241 704 215 490 -26 214 -10.8%
Poles 389 167 332 458 -56 708 -14.6%
Woodchips: Soft 167 775 165 234 -2 541 -1.5%
Other: Hard 48779 32 916 -15 863 -32.5%
Grand Total 16 659 698 14 261 628 -2 398 070 -14.4%
Roundwood Sales by Contributor2009
82.9%
15.6%
1.6%
Corporates Co-ops Independents
Total Sales – 14 261 000 tons
Roundwood Sales per Month2009 by Species
0
500
1 000
1 500
J F M A M J J A S O N D
Month
Th
ou
san
d T
on
s
Softwood Eucalyptus Wattle Total
Highest sales - March 1 433 000 tLowest sales - July 1 036 000 t
Roundwood Sales per Month2009 by Product
0
500
1 000
1 500
J F M A M J J A S O N D
Month
Th
ou
sa
nd
To
ns
Pulpwood Sawlogs Other Total
Highest sales - March 1 433 000 tLowest sales - July 1 036 000 t
Roundwood Sales per Month2009 Budget vs. Actual
1 000
1 100
1 200
1 300
1 400
1 500
J F M A M J J A S O N D
Month
Th
ou
sa
nd
To
ns
Budget Actual
Highest surplus - March 191 000 tHighest deficit - July 206 000 t
Contributions Generated by Contributor - 2009
82.6%
15.9%
1.5%
Corporates Co-Ops Independents
Total Income Generated – R17 850 000
Levy Income Generated per Month2009 Budget vs. Actual
1 200
1 300
1 400
1 500
1 600
1 700
1 800
1 900
J F M A M J J A S O N D
Month
Th
ou
sa
nd
Ra
nd
s
Budget Actual
Highest Income - March R1 798 000Lowest Income - July R1 289 000
Budgeted FSA Expenditure vs. Actual Levy Income - 2009
1 000
1 200
1 400
1 600
1 800
2 000
2 200
2 400
2 600
J F M A M J J A S O N D
Month
Th
ou
san
d R
and
s
Budgeted Exp. Actual Income
Accumulated deficit by year end - R3 907 000(Excludes approved but unbudgeted expenditure nor
attributable income)
Tonnage & Levy Income Comparison2009 Budget vs. Actual
10
11
12
13
14
15
16
17
18
19
20
Tonnage Rands
Mill
ion
Ran
d /
To
ns
Actual Budget
638 000 Ton Deficit
R1 222 000 Deficit
Tonnage @ 128 cents per ton - 13 497 000 tTonnage @ 75 cents per ton - 764 000 t
Roundwood Sales Comparisons2007/08 DWAF vs. 2009 FSA by Species
0.771
9.163
7.524
1.204
6.043
7.014
0 2 4 6 8 10 12
Wattle
Softwood
Eucalyptus
Million Tons
DWAF FSA
Sales ex Plantations 2007/08 (DWAF) - 17.5 m tonsFSA based sales 2009 - 14.3 m tons
93% of DWAF
66% of DWAF
156% of DWAF
Overall coverage 82% (94% last yr)
Roundwood Sales Comparisons2007/08 DWAF vs. 2009 FSA by Product
0.387
0.352
0.427
5.427
10.881
0.330
0.332
0.261
2.911
10.559
0 2 4 6 8 10 12 14 16
Other
Poles
Mining Timber
Sawlogs
Pulpwood
Million Tons
DWAF FSA
97% of DWAF
54% of DWAF
61% of DWAF
94% of DWAF
85% of DWAF
Sales ex Plantations 2007/08 (DWAF) - 17.5 m tonsFSA based sales 2009 - 14.3 m tons
Analysis of Roundwood Salesand Income Generated
2002 - 2009
Roundwood Sales per Year2002 - 2009
14.261
16.66016.04016.60016.54116.47616.994
14.305
0
2
4
6
8
10
12
14
16
18
20
2002 2003 2004 2005 2006 2007 2008 2009
Mil
lio
n T
on
s
@ lower levy @ full levy
Lower levy excludes a contribution to the ICFR
Sales Comparisons per Species2002 - 2009
0
2
4
6
8
10
12
2002 2003 2004 2005 2006 2007 2008 2009
Year
Mill
ion
To
ns
Eucalytpus Softwood Wattle
Roundwood Sales 2002 - 2009Eucalyptus
6.889
9.2379.010
8.828
8.511
8.065
8.725
7.014
6
7
8
9
10
2002 2003 2004 2005 2006 2007 2008 2009
Years
Mil
lio
n T
on
s
Roundwood Sales 2002 - 2009Softwood
5.900
6.208
5.995
6.229
6.664 6.667
6.526
6.043
5.5
6.0
6.5
7.0
2002 2003 2004 2005 2006 2007 2008 2009
Years
Mil
lio
n T
on
s
Roundwood Sales 2002 - 2009Wattle
1.517
1.575
1.471 1.484
1.425
1.309
1.409
1.2041.2
1.3
1.4
1.5
1.6
1.7
2002 2003 2004 2005 2006 2007 2008 2009
Years
Mil
lio
n T
on
s
Roundwood Sale Comparisons per Species2008 vs. 2009
1.409
6.526
8.725
1.204
6.043
7.014
0
1
2
3
4
5
6
7
8
9
10
Wattle Softwood Eucalyptus
Mill
ion
To
ns
2008 2009
Down 205 000t
- 14.6%
Down 1 711 000t
-19.6%
Down 483 000t
- 7.4%
Overall decrease of 2 398 000t or 14.4%
Sales Comparisons per Product2002 - 2009
0
2
4
6
8
10
12
14
2002 2003 2004 2005 2006 2007 2008 2009
Year
Mill
ion
To
ns
Pulpwood Sawlogs MT & Other
Pulpwood growth over period + 238 000 tons + 2.3%Sawlog decline over period - 376 000 tons - 11.4%MT & Other growth over period + 95 000 tons +13.6%
Roundwood Sales 2002 - 2009Pulpwood
10.321
12.667 12.67412.381
11.70711.391
12.502
10.559
9
10
11
12
13
14
2002 2003 2004 2005 2006 2007 2008 2009
Years
Mil
lio
n T
on
s
Roundwood Sales 2002 - 2009Sawlogs
3.2873.429
3.039
3.228
3.991
3.638
3.222
2.911
2.00
2.50
3.00
3.50
4.00
4.50
2002 2003 2004 2005 2006 2007 2008 2009
Years
Mil
lio
n T
on
s
Roundwood Sales 2002 - 2009Mining Timber & Other
0.697
0.924
0.763
0.9310.901
1.011
0.936
0.792
0.60
0.70
0.80
0.90
1.00
1.10
2002 2003 2004 2005 2006 2007 2008 2009
Years
Mil
lio
n T
on
s
Roundwood Sale Comparisons per Product2008 vs. 2009
0.936
3.222
12.502
0.792
2.911
10.559
0
2
4
6
8
10
12
14
Other Sawlogs Pulpwood
Mill
ion
To
ns
2008 2009
Down 144 000t
-15.4%
Down 1 943 000t -15.5%
Down 311 000t
- 9.7%
Overall decrease of 2 398 000t or 14.4%
Levy Income Generated per Year2002 - 2009
9.570
11.85511.468
12.24913.002
17.905 17.850
15.607
8
10
12
14
16
18
20
2002 2003 2004 2005 2006 2007 2008 2009
Year
Mill
ion
Ra
nd
Levy income in 2009 actually R55 000 less than in 2008 and R1 222 000 under budget
Sales Tonnage per Contributor2008 vs. 2009
0.220 0.222
13.581
2.859
11.822
2.218
0
2
4
6
8
10
12
14
16
Corporates Co-ops Independents
Mill
ion
To
ns
2008 2009
Down 1 759 000t
-13.0%
Up 2 000t
+09%
Down 641 000t
-22.4%
Overall decrease of 2 398 000t or 14.4%
Income Generation per Contributor2008 vs. 2009
14.549
3.145
0.211
14.745
2.839
0.2660
2
4
6
8
10
12
14
16
Corporates Co-ops Independents
Mill
ion
Ra
nd
2008 2009
Up R196 000
+1.3%
Up R55 000
+26.1%
Down R306 000
-9.7%
Overall decrease of R55 000 or 0.3%
