Nct news & views april 2016 ezine

N E W S & V I E W S • A P R I L 2 0 1 6 1

Inthis

issue

•

Drought –

challenges

•

New forestry

standards for

SA

•

Innovative

uses for

timber

•

L I N K I N G I N D E P E N D E N T T I M B E R G R O W E R S T O M A R K E T S

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In the midst of a poorly-performing local economy and a drought that has devastated much of the agricultural sector, it is heartening to witness the cushioning impact that NCT’s hardwood pulpwood business is currently having on its members.

Growers have been able to sell their annual hardwood tonnages with few restrictions, and mill delivered prices (before taking price enhancements and bonuses into account) have risen by 25-30 per cent in the last 12 months.

Looking back over the past 20 years, this has not always been the case; there have been times when sales volumes have been restricted and there have been times when prices were unsustainable low. There have even been very tough periods when there were both sales restrictions as well as low prices.

Clearly a large factor behind the current mill

delivered prices is the Rand’s weakness against the US dollar, but it is not only that. What is also important to note is that as a result of the structural changes that have taken place in recent years, through which NCT now fully owns its wood chipping plants, virtually all of the profits of the wood chipping businesses flow to members. Also, by increasing volume throughput and economies of scale, avoiding duplications and honing efficiencies at these plants, wood chipping costs are reducing in real terms.

Many of NCT’s members are mixed farmers who are facing hard times in their other enterprises. Some are having to reduce their livestock herds as a result of depleted grazing, or have lost money through the failure of their summer cash crops. It is gratifying to see that their decision to farm trees, which constitute a robust crop if careful site-species matching is practiced, is again paying off.

from the General Manager

Patrick Kime

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DROUGHT ... facing the challenge

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At time of writing, most of the key dams in the KZN province are down to 40% of capacity levels. The scary fact is that even the 40% estimate is flawed, given the unknown silt content of many of the dams.

According to a recent seminar that I attended, the closer the water levels drop towards the silt build up, apparently the more toxins (heavy metals) are found in the water.

Quite astoundingly, it was only early March 2016 when the formal administrative decision was made that KZN municipalities should reduce their water usage by 15%.

Again, to date, very few regions within the Province are currently on water restrictions, which one would have thought ought to have been mandatory at least a year ago, aimed primarily at water saving and secondly at changing, for the better, consumers water use behaviour.

Turning the conversation towards NCT member areas, arguably the most dire effects of the drought are being felt in the Vryheid region in northern KZN. No municipal water is being supplied to any of the town’s residential areas given that the dams feeding the area have all but dried up. The Klipfontein dam stands at less than 15% which is the areas’ largest dam and also feeds Ulundi. The Bloemveld dam is less than 10% and although (contrary to the norm) the smaller Grootgewacht emergency reserve dam is at 96%, there is a problem with the pipes, as yet unresolved. It is believed that should the

pipes be repaired, the resultant feed would keep Vryheid going only for two to four weeks.

There are at least 40 boreholes and tanks around Vryheid town where residents can get water. Various other towns and NGO’s have helped out with bottled water donations, which were distributed to residents from various points within the community. There are also tanks at the central NG Klipkerk where people can draw water from tanks and which are being regularly replenished by various farmers and individuals. This water is however, not for drinking.

In keeping with the trends that the weather gurus have been discussing, during the 2014, 2015 and 2016 season, the rainfall totals have been far below

Rob Thompson, NCT’s Assistant General Manager

... facing the challenge

This article, by no means bears any scientific or technical content. It does however serve to record

observations from arguably the worst drought period that any reader thereof, is likely to have

experienced to date.

The article is also not meant to be alarmist. It is merely an anecdotal discussion shared with

fellow timber growers. Often one finds that facing the reality of a situation head on, leads to an

acceptance thereof and the energy to deal with such in the most effective and positive manner possible.

By understanding that we are not facing the challenge alone, a collective perseverance can lead

to ultimate success

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average and there have also been far fewer rainfall incidents exceeding 19mm. This has led to a gradual depletion of groundwater resources and thus many perennial springs have suddenly dried up this summer. There has also been less run-off into streams and rivers, thus leading to low dam levels.

Take into consideration that the average temperature for January 2016 was apparently more than 1°C higher than the long-term average and you begin to realise why there is a water shortage. This is clearly seen in the northern Zululand area where ground water reserves are at critical levels and recharge to original levels are unlikely over the medium-term.

This may just change the future face of agriculture, farming and other land uses in that area. Lake St Lucia only has around 30% water coverage at present which is leading to all sorts of environmental and bio-diversity issues.

A once common sight on northern KZN roads was trucks carrying wattle timber and wattle bark. Trucks carrying large green Jo-Jo tanks seem to ironically have taken their place. A timber farmer visiting me recently said that he was grateful that he was a timber farmer given that timber is a lot more drought forgiving than livestock or short rotation crops. While this is true, the reality is that the long-term nature of the drought is now placing timber and associated business under immense pressure.

Silviculture contractors are rapidly running out of work due to no planting and significantly reduced weeding and tending operations. These teams can only be deployed in conservation areas for so long before that

too becomes redundant and cost inefficient. Some might think that the reduced weed cover is a positive thing. Well, it might have some short-term benefits but the general consensus is that we should expect a weed surge of note at a later stage. This surge might be ill-timed and add pressure to fire preparedness in the winter season. Specialised harvesting teams are also under pressure given erratic and often vulnerable harvest plans.

Persistent dry weather has reduced the planting area dramatically, leading to a roll-on effect to nurseries and impacting on their stock holding. Now carrying high seedling/cutting

stocks, many nurseries are desperately trying to find markets for their plant material. Ironically, some growers did risk summer planting using water and hydrogels and in many cases this gamble paid off. The new plants have been carried by the few light rain events that have occurred subsequent to planting and are now likely to survive.

Throughout the KZN forestry areas, the drought is being referred to as a green drought. Regular small rainfall events do occur which despite not recharging ground water reserves, serve to keep vegetation alive and green. Grass cover for instance appears lush, but is not as developed as it could be. Cattle and other herbivores hone in on these grass flushes and they too appear in many cases to be in good health. The real dilemma will however occur with the onset of winter and the grass dying back.

On the wattle front, bark stripping is patchy all over the northern areas. In some areas, it does not strip at all, while in others, full bark production is underway. This driven by the rainfall events described above. An interesting consequence of this erratic pattern is reflected

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Northern KZN rainfall records, over the last five years, show the following

disturbing pattern:2011 – 852mm 2012 – 984mm 2013 – 922mm2014 – 612mm2015 – 615mm

A sight close to Vryheid. Cattle carcass eaten by Cape vultures

N E W S & V I E W S • A P R I L 2 0 1 6 7

in the timber orders being placed by members. Members are finding it difficult to plan, not knowing if the bark will strip or not. High pulpwood prices and the need for cash flow however, contribute towards the decision then made to place orders for both wattle and gum, thereby hedging their bets, but leading to record breaking order placements, which, in turn, leads to inaccurate supply forecasts at mill level.

Drought damage is apparent in mature stands across the province. On the positive side, the drought does assist in pointing out sites that ought never to have been planted at all. Rocky areas with shallow soil profiles are showing signs of distinct stress and/or mortality. The dry conditions also provide an interesting insight into the resilience of some species. C. henryii and C. terelliana are showing signs of becoming the species of the future and their survival traits are attracting a great deal of interest. NCT has a programme under way to convert the drought and pest stressed small

grower stands of Zululand (typically GXC and GXU) to C. henryi.

The drought has also created ideal conditions for a number of pest outbreaks. Localised outbreaks of chafer beetles, wattle looper larvae, wattle emperor moth larvae, and even wattle rust have all presented over recent months. While none of these outbreaks have reached epidemic proportions, they do provide some cause for concern.

Throughout all of this, timber farmers encountered, although despondent, have shown a remarkable and commendable resilience to the situation.

The sense of community that is now emanating is amazing. People facing a common threat certainly form a united and co-operative front. The drought will certainly end. Of that I have no doubt.

The real challenge will be in maintaining the unity created into the good times to follow.

Salvage of drought and pest damaged gums in the Zululand region does not result in high tonnage returns. Note the small diameter logs

2. Wattle Emperor moth eggs (hatched)

3. Wattle rust. Just another scourge that

is affecting wattle stands (even in the

drought)

1. The Wattle looper that looks remarkably

like a stick

1 2 3

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End of an eraDecline in trade has led to this closure which is

mainly a consequence of:• thereductionofprivatetimbergrowernumbers

because of mergers and take-over bids of various private plantations by large corporates;

• the diminishing number of private andindependent buyers/millers due to DWAF’s exit strategy; and

• thecollapseofrailtransport,whichisdrainingthe area of wattle pulpwood.

The office has provided a service to timber growers, buyers, harvesting and transport contractors for 19 years in the greater Southern Cape region. The closure is no way a reflection of the performance of staff. On the contrary, the NCT George office, is a typical text book example of a successful business strategy progressing through its life cycle: the establishment of a new business, the growth phase, reaching maturity and then the decline.

NCT’s George office will close its doors on 30 April. The decision has not been taken lightly with much deliberation and discussions with stakeholders.

James van Zyl, NCT’s Commercial Services Manager

In the beginningThe George office was established in 1997 in

conjunction with Suidwestelike Landbou Ko-operasie Beperk which later became known as Tuinroete Agri Co-op Beperk. With the help of Karel Hancke of Spoornet (now Transnet Freight Rail), access for wattle pulpwood to the Richards Bay chip markets was achieved. Procurement depots were opened at Outeniqua siding (outside George) and a narrow-to-broad gauge line trans-shipping depot at Bakensriver (Port Elizabeth) using DZ trucks with wooden stanchions. Tariffs from Outeniqua siding to Richards Bay were R1600 per DZ.

Up to 50 000 tonnes per annum of wattle pulpwood was supplied by 30 members in the greater southern and eastern Cape region (Riversdal, Albertina, Skimmelkrnas, Humewood,

DZ trucks with stanchions

Special thanks go to the George office staff – Toekie Steenkamp (l) and Annaline Munro – who have provided outstanding service to

members and buyers alike in the region.

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Timber plantations below the Outeniqua mountains near George and Knysna

Stutterheim). A further 30 000 tonnes per annum was sourced from an additional 11 members that supplied 17 local markets (Sappi Novaboard, Geelhouvlei Timbers and Outeniqua Pale.

The declining yearsIn 2005, DWAF announced its exit strategy

for 45 000ha of plantations in the Boland and Southern Cape regions.

This was a heavy blow to the local timber industry and reduced the volume of timber harvested. This resulted in the closure of Sappi’s Novaboard MDF factory and other independent timber companies.

It was also a time when Spoornet evolved to Transnet Freight Rail, refocusing its management and service policies. The service on this route dwindled and the last trains loaded with timber bound for Richards Bay were dispatched in 2010.

The final blow was the sale and closure of some of the large commercial farms which were NCT members.

By 2015, the NCT office in the greater southern Cape region serviced only five large-scale commercial growers supplying nine local non-pulpwood markets with approximately 14 000 tonnes per annum.

A shift in the marketsInfluenced by increased costs of rail transport,

the wattle pulpwood flows migrated inland from the southern Cape region to the Eastern Cape and in particular the greater Stutterheim area. This became noticeable in 2011.

Today, NCT moves approximately 35 000 tpa of wattle pulpwood from the Stutterheim area to NCT Durban Wood Chips (DWC). The full quota of this volume is delivered by road transport and the flow is managed on a “pull” approach (no local NCT staff involved).

Timber is consistently supplied by 17 non-commercial timber supplier members in the area with only one commercial timber grower operating in the region.

The timber is moved on backhauls by four road transport companies with flat deck trucks. A solid relationship has been developed between NCT & these transporters over recent years who are critical in the success of the current flow of timber to DWC. A weighbridge has been installed in Stutterheim to assist all transporters to comply with the latest overload legislation.

NCT takes this opportunity to thank all past and present members and buyers in the southern Cape region for their support and patronage over the last 19 years. This reflection serves as a reminder that the NCT George office is a success story at a time when it was needed by private timber growers in the area.

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Nothing in this article is new. The topic is however worthy of a regular refresher and to consider measures that are in place, or, ought to be in place, to thwart timber theft.

With prices of hardwood pulpwood recently having reached record highs, there is a renewed interest in the marketing of hardwood pulpwood. Obviously, opportunists abound, who are committed to sourcing timber using extremely innovative, albeit illicit means. It is critical therefore, that, as timber producers, we close all known gaps and loopholes in the supply chain and make it difficult for thieves to operate.

One of the most fundamental theft preventative measures entails knowing exactly how much timber is on any given spot, or in transit, at any given time.

Calculate in advance how many tonnes you are likely to achieve from your harvesting operation. Have reliable people tally timber in field and on depot. Record all timber loads in and out of depots. Know where your depots stocks are located (especially on shared depots). Know exactly how much timber is on depot. You would be surprised at how many growers do not keep regularly updated and accurate records of this, and merely rely on gut-feel.

Reliable guards or control points are becoming more essential. Consider using technology readily available, which is cost effective and efficient. Camera traps at depots or strategic points play an important role as security controls and monitors and can phone or sms you (and even send a picture) in the event of a trigger. Very often these technological aids are more cost effective than having full time security personnel deployed, but obviously you have to weigh up the circumstances prevailing and the security requirements.

The application of timber dye (green for NCT members) as soon after clear-felling, remains an understated theft deterrent. Mill personnel across the industry are sensitised to be on the lookout for incoming suspicious loads. Loads therefore comprising in part, of marked logs, immediately create suspicion and formal investigation ensues.

Where theft off of a depot is suspected, persistent marking of logs stored there is often all it takes for the thieves to seek alternative pastures.

Skimming off road trucks and rail wagons remains a concern, and there are recent reports of such incidences resurfacing. As a precaution, paint a swath of dye across the billets and down each side, after strap application. Further enhance your records by photographing the load together with the driver before departure. A person who knows he is being watched, is unlikely to be tempted into doing something illegal. A reliable person can be appointed to execute this task and with most cell phones equipped with decent cameras, equipment is not an issue. If you do suspect en-route tampering of loads, be aware that NCT is able to provide, on request, a profile still picture of each wagon or road vehicle reaching mill. By comparing your dispatch picture, with the mill picture, you will soon see if the load has been disturbed en-route, via a break in the dye swath pattern.

Use your records to good effect. With overloading legislation in play, many growers have access to a dispatch load weight printout record ex the truck’s on board weighing system. Make a habit of comparing these records with mill weighbridge records and report any serious weight anomalies for investigation, soonest possible.

Use and control your delivery notes responsibly. They should only be handled by reliable and delegated personnel. Close down any opportunity

Rob Thompson, NCT’s Assistant General Manager

Application of timber dye (green for NCT)

Combatting timber-theft – r e v i s i t e d –

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for fraud or abuse of delivery documentation. When dealing with outside harvesting

contractors or persons sourcing timber from your farm, ensure that you have a clear and written signed agreement in place, before operations commence.

Outline what must be felled, who may be on the farm, permits to be carried, where timber is located, access protocols to be followed, (Figure 1 above) payment terms and any other key information pertinent to the circumstances. It is better to be over-cautious during the pre-operation phase, than having to unravel a dispute and or fraud/theft incident later on. The tighter the controls, the less chance there is of mishap.

Sensitise key staff regularly as to which legal persons or entities are operating on the farm at any given time. Encourage them to report to you, people movements and or vehicles that are observed and that do not conform to the known operators. Often illicit activity is not reported due to personnel being un-informed.

Basic anti-timber theft protocols therefore boil down to a ensuring a clear, well-documented, recorded, monitored and cross-checked chain-of-custody. By applying these basic measures you might not totally eradicate timber theft, but, you will pick up on it and be in the position to act appropriately.

One of the biggest challenges in theft cases and the prosecution of guilty parties, is proving that theft actually did occur! If you cannot prove for instance that you had stacked timber in a particular spot or that your vehicle did indeed have 32 tonnes of timber on board at dispatch etc. etc. the case is likely to be doomed to failure. It all boils down to accurate and undeniable records.

Application of the aforementioned protocols may just give you the upper hand in the constant battle against timber theft.

Most importantly, stay safe and don’t take unnecessary risks. You and your families and employees’ lives are worth far more than timber that can, after all, be replanted.

Apply anti-timber theft protocols – ensure well-documented and clear records

Combatting timber-theft – r e v i s i t e d –

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Wetland and riparian zone management

Craig Norris, NCT’s Forest Technology Manager

A well-managed riparian area with adequate buffer zones

South Africa is a dry country which means that water is one of the most valuable resources. Commercial plantations are grown in the wetter regions of the country and there can be a conflict of interest between timber growers and other water users.

It has been estimated that forestry uses 8% of rainfall which would otherwise have flowed into rivers.

It is therefore important that forestry operations are managed in such a way as to minimise impact on the quantity and quality of water impacts. Wetlands and riparian areas play a critical role in this respect.

Timber farmers can ensure that the impact of their operations on water resources are minimised and thus help counteract the criticism against forestry.

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What is a wetland?It is land that is wet to enable for long periods

of anaerobic conditions (no or very little oxygen present) to develop in the soil. Wetlands are characterised by wetland vegetation (e.g. sedges and reeds), water close to the soils surface and hydromorphic soils (soils formed under anaerobic conditions). In steep terrain, wetlands can take the form of seeps, sponges and springs. On flatter terrain they are found around rivers, lakes, pans and flood plains.

What is a riparian zone?It is the area adjacent to and associated with

a watercourse. These areas are usually found in valley bottoms where water accumulates before entering streams.

Why are these so important?Functioning wetlands and riparian zones have

many benefits for society:1. Flood reduction and stream flow regulation.

Vegetation in these areas provides resistance to water moving through catchments and allows more infiltration to occur. The net result is that floods are reduced and stream flow is prolonged during dry times.

2. Water purification. Vegetation in riparian zones acts as a buffer strip which filters sediment from surrounding areas. Streams and rivers with well vegetated riparian zones usually have clean water flowing in them.

Wetlands are effective natural filters, helping to purify the water by trapping pollutants.

3. Erosion control. The vegetation found in these areas controls erosion by reducing current energy, binding and stabilising the soil and also by recovering rapidly from flood damage.

4. Biodiversity. A rich diversity of plant and animal life is found in these zones. These zones also act as effective corridors connecting unplanted areas. This allows for wildlife to move along these corridors between conservation areas.

Which land use activities affect these areas?

The use of these zones for farming operations may provide good short term returns, but these operations are not necessarily sustainable. To reclaim these areas once they have been disturbed can be a lengthy and costly exercise.

Land use activities that may have a negative impact on these zones are:

Timber production. Timber planted too close to wetlands and streams has an impact on the ability of the planted area to store and shed water. Under increased shading beneath trees the vigour of indigenous plants is reduced and they are often out competed by alien invasive plants.

Drainage and the production of crops and pastures. When wetlands are converted to crop land most of the benefits of the wetland are lost. They become less effective at regulating stream flow, purifying water and controlling erosion.

Grazing of domestic stock. Over-grazing results in valuable grazing species being replaced by less productive species.

Infrastructure. Inappropriately design and positioned infrastructure such as roads can have significant impacts on water quality. A large proportion of erosion in plantations is as a result of water from road networks. The impact of roads can be reduced by ensuring that roads are well drained and that water from roads is shed into surrounding vegetation. Water should never run along a road for more than 30m. River crossings must be constructed and right angles to the stream and kept to a minimum.

How wide should the unplanted zone be?General guidelines can be given as to

how far to keep plantations away from these areas, but common sense must be used in the implementation of these guidelines.

Plantations should not be planted closer than 20m to the edge of a wetland. The edge of a wetland can be defined as that point where hydromorphic soils are found at a depth of 50cm from the soil surface. In other words, the only way to accurately delineate a wetland is to use a soil auger to determine where the wetland soil are close to the soil surface.

How should these unplanted areas be managed?

When formulating a management strategy the principle of conservation rather than preservation should be implemented and resources from these areas should be utilised to help sustain their management.

Wetlands and riparian zones should be clearly demarcated and forestry operations kept out of the demarcated area. This is usually achieved by means of boundary roads which must be planned before clear-felling, or in the case of new plantations, before establishment. Felling of trees

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and dumping of plantation debris in these areas should be avoided at all costs. The severity of invasion by alien plants is directly proportional to the degree of disturbance in that zone.

Burning is a useful management tool in grasslands and wetlands. It can be used to improve livestock grazing, control weeds, improve the habitat for wetland dependent species and to reduce the risk of wild fires.

In the high rainfall areas of South Africa a fire every second year is unlikely to have a negative effect on wetland species. However, when a wetland is burnt it is important that unburnt areas are present in the vicinity to provide cover for animals.

Grasslands in riparian zones should be burnt annually, or biennially, during the winter. If possible patch burning should be practised. Large woody weeds must be eradicated before implementing a burn.

Grazing livestock in wetlands and riparian zones can be used as a management tool and at the same time generate income. Wetlands can provide valuable grazing lands in the early growing season and during droughts when the veld is dry. However, vegetation must be monitored to avoid overgrazing.

These areas are also important places where game can thrive. Recreational hunting can be used to control game populations and the

A delineated riparian area showing A, the permanently wet zone; B, the temporary wet zone;and the 20m buffer from the edge of the temporary zone

A B

income generated can be ploughed back into the management of these areas. Natural forest in riparian zones should be disturbed as little as possible.

How does one rehabilitate wetlands and riparian areas?

When compartments adjacent to wetlands and streams are felled the buffer zone needs to be delineated and the new plantations should be kept the required distance from these zones. The resulting unplanted areas would require intensive management for about five years to ensure that indigenous vegetation re-establish. Thereafter less intensive maintenance work can be carried out.

The biggest challenge is the control of alien vegetation. These areas are particularly susceptible to invasion because they are good dispersal routes resulting in a lot of seed being deposited.

The rehabilitation programme plan should include:• Map riparian areas and wetlands and divide

them into management units with compartment numbers.

• Prioritise riparian compartments in terms oftheir ecological importance.

• Identifythedominantweedpopulationsineachcompartment.

• Identifytypeofclimaxvegetationcoverthatisto be achieved (e.g. grasses vs trees).

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• Assigninitialclearingandfollow-upoperationsto each block.

• Assign specific treatments to each block toensure the most cost effective treatments are used (based on weed population composition and climax vegetation of the area).It is important that rehabilitation of an area is

well in hand before moving to a new zone because without annual management, half-rehabilitated areas will soon regress. Abandoned riparian areas serve as seed banks for alien infestation on a farm.

This means that one must not try to rehabilitate areas larger than are manageable. Some management ‘tools’ that can be used to speed up rehabilitation of areas are:

Fire. In grassland regions the riparian zone should be burnt on an annual basis for at least 5 years after removal of plantations. This will encourage grasses to dominate the vegetation. Areas devoid of grass seed may require artificial seeding using a grass seed mix.

Grazing of livestock. This can be used as a means of controlling certain alien species (e.g. wattle).

Goats can be used very effectively if they are ‘fenced’ into camps which can be moved around. They will feed on most weed species.

Herbicides. The selective use of herbicides is essential for the control of certain weeds (e.g. bramble and bugweed).

Although clearing timber out of wetlands and riparian zones is an expensive and management intensive operation the long term advantages far outweigh the costs involved.

Once rehabilitated the recreational, grazing and water-shedding value of these areas will more than justify the effort involved. The benefits derived from intact wetlands and riparian zones are numerous and a price cannot be attached to their value.

Mosaic burning in a riparian area implemented to provide a protected habitat

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Black wattle (Acacia mearnsii) has a long history of improvement through breeding research. As early as the 1930’s the Department of Forestry planted land with selected stocks of wattle. The Wattle Research Institute and later the Institute for Commercial Forestry Research (ICFR) continued with this work resulting in highly selected material becoming available for planting.

To deploy the gains made in the breeding programme it is necessary to establish seed orchards from selected material.

The seed production process starts with the establishment of superior material, selected from the breeding population, in orchards of one to three hectares. These orchards are planted and

Craig Norris, NCT’s Forest Technology Manager

Wattle seed production

A black wattle orchard established on NCT’s Enon farm

Material collected from the litter layer in a seed orchard with wattle seeds

managed by the ICFR on either Company or privately owned land. The blocks are thinned to remove any diseased, deformed or small trees.

After approximately 10 years the thinned orchards are cleaned of undergrowth and the litter layer is swept into piles and collected. This material is screened though a course mesh to remove pods, twigs and large debris. The sievings are then winnowed by pouring from one basin to another until a relatively high proportion of seed to soil is achieved. The seed is then washed in cold water to remove any remaining soil and dried in the shade. Small stones the same size of seeds can be removed by putting the seed into a saturated solution of calcium chloride.

Black wattle seed can be stored for many years without noticeable reduction in viability. However, the seed needs to be treated before germination. The seeds have hard coats with structural and chemical features that make it impermeable to

water or gases. Many pre-treatments can be used to break seed coat dormancy including nicking, hot water, acid scarification, and other physical techniques. The hot water technique is normally used when treating commercial seedlots. Seed is placed in perforated metal baskets and immersed in water at 90˚c for one to five minutes, using a ratio of 1kg seed to 25 litres of water. The dried treated seed may be stored for up to one year.

The processed seed is then sold by the ICFR to nurseries who germinate it and market seedlings to the Wattle Industry.

Seed that is used for line sowings is collected from commercial compartments rather than seed orchards. This is because orchard seed is limited and is reserved for seedling production to avoid wastage. It also means that the level of genetic improvement of plantations established from line sowings is inferior.

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The use of fibre from trees into traditional pulp and paper markets is diversifying into a far wider consumable market. This trend is certainly the case at the Sappi Saiccor mill outside Durban where its move into the specialised cellulose market will reduce Sappi’s exposure to the traditional pulp and paper sector. End products are now used in downstream consumables wider than the traditional pulp, paper and packaging industries.

NCT’s board and management recently visited the Sappi Saiccor mill and were hosted by Alex Thiel, CEO Sappi Southern Africa, Corporate Limited and senior management.

Sappi shared its new vision and strategy with the visitors which promotes Sappi as a single integrated entity, collaborating with various international “centres of excellence”.

This new strategy, coupled with very good published financial results, a lower group debt burden, and the addition of new markets to explore, bodes well for Sappi as a business, all its stakeholders and timber suppliers in the catchment.

This confidence is already evident in the Sappi share prices which has moved significantly over the last 12 months due to positive market sentiment and investor confidence towards the “new” Sappi and its operations.

Wood fibre consists mainly of cellulose (45%), hemi-cellulose (30%), lignin (23%), and resin and inorganics (2%). Traditional pulp & paper processes concentrate mainly on the recovery of the cellulose component for pulp and paper production while some lignin is recovered as energy and the other components disposed of as waste.

In the new process, more usable components are extracted and used in downstream products. From the specialised cellulose comes viscose clothing, fillers for tablets and foodstuffs (cellulose is effectively colour and odourless and just passes through the digestive system), cigarette filters, cellphone and computer screens, tyre manufacturing and cellophane wrapping. A large percentage of lignins and hemi-cellulose is recovered and used as bio-energy while lignosulfonates are used in the mining and construction industry as binders and dust suppressors.

Binders are also used in the ceramic, brick and tile manufacturing business, animal feed and fertilsers.

These new developments supports the long-term demand for timber – there will always be a market for it in the future. Added value = higher demand = better the prices for the producer.

Timber innovation

SAPPI SAICCOR mill

NCT has supplied over 300 000 tonnes per annum of gum pulpwood to this mill for the past three years, making it the co-operative’s largest local pulpwood buyer. The Sappi Saiccor mill’s total planned intake is 2,8 million tonnes of green metric tonnes of timber per annum. That equates to a daily consumption of approx 9 000 gmt’s per day.

NCT’s association with this state-of-the-art facility, business, and its people, will serve its growers well into the future.

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This is the description assigned to 1716AF 125kW Bell haulage tractors and UNI-CAB Tandem trailers at NCT Tree Farming’s Longridge Estate in northern KZN.

Aging equipment and rising transport costs prompted investigations into economical options. Short haul equipment with larger payloads have proved to be the best solution.

Compared to the former short-haul two loads a day totalling 72 tonnes of pulp per day, each new tandem trailer rig now carries a pay load of 34 tonnes totalling 136 tonnes per day. This amounts to 64 tonnes more than what the old TS 120 units could carry. Working on 95% productivity on an annual basis, 29 250 tonnes of timber can be moved.

S AV I N G T I M E ( a n d m o n e y )

The rigs can be loaded infield and then short hauled directly to the siding (1)

Tractor and trailers entering a compartment without a problem can achieve a round trip of four hours per trip allowing for two loads per day per unit.

If however the tractor and both trailers cannot enter the compartment, the trailer configuration allows the driver to unhitch one of the trailers on road side and enter the compartment with just one trailer (2).

This unique kwik-coupling system was developed by UNI-CAB from Eshowe and has made the hitching and unhitching of the tandem trailers very efficient (3). These units can also be used to transport bark.

New tandem trailer rig now carries a pay load of 34 tonnes totalling 136 tonnes per day

Efficient. Effective. Economical.

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S AV I N G T I M E ( a n d m o n e y )a t L O N G R I D G E

This unique kwik-coupling system was developed by UNI-CAB from Eshowe

The trailer configuration allows the driver to unhitch one of the trailers on road side and enter the compartment with just one trailer

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At NCT, the finance department fulfils all the aforementioned functions and is managed by Richard Golding, NCT’s Chief Financial officer.

The finance department is divided into timber services and general accounting with nine employees under Richard’s supervision. Rhonelle Brink is his 2IC and she ensures that all the day-to-day duties are performed. Richard’s responsibility is to ensure that the daily cash requirements of the NCT group are met, and that the running of the finance department remains

of the highest standard. He deals with unusual requests from other department and board of directors, and has to make a decision on whether or not the request is fair and/or legitimate.

The timber services department (TSD) ensures that monthly, weekly advance and bonus payments are made to members. The general accounts department on the other hand provides financial support and record-keeping for all financial transactions in the co-operative. Both sections are managed by Rhonelle Brink with

NCT ’S FINANCE DEPARTMENT

The finance department is an integral part of an organisation that manages its cash flow and investments. The business functions of a finance department typically includes planning, organising, auditing, accounting for and controlling the company’s finances. The finance department also usually produces the company’s financial statements. Mfundo Zungu, NCT’s PR Assistant finds what makes the wheels turn in NCT’s finance department.

(l-r) Elphius Madebe, Winnie Dlamini, Ramesh Iyer, Theo Shezi and Rhonelle Brink (seated)

N E W S & V I E W S • A P R I L 2 0 1 6 21

NCT ’S FINANCE DEPARTMENT

all clerks in TSD equally sharing the work load of processing member invoices and invoicing mills for supplies made. The team is made up of Ramesh Iyer, Tammy Ramlagan, Winnie Dlamini, Theo Shezi and Elphius Madebe.

General accounts is managed by Bala Naidoo, who is responsible for journals, fixed assets and

ledgers. Anastasia David oversees creditors’ and vehicle expenses, while Sydney Naidoo administers the cash-book, bank account and sundry payments.

It is imperative that the finance department is supplied timeous and accurate information by other departments and subsidiaries.

Sydney Naidoo (l), Anastasia David and Bala Naidoo (seated)

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We bid farewell to Richard Golding, NCT’s Chief Financial Officer who emigrates to Canada in June to start new challenges with his family.

Richard has played a pivotal role in managing NCT’s financial policies and investments spanning 20 years at the co-operative. He started at NCT in August 1996 as a financial manager. In those days, NCT shared CTC with TWK, as the only wood chip mill, “and if there was R5 million in the bank, NCT was rich,” quips Richard. Today he manages a cash portfolio of over R400 million.

Prior to joining NCT, Richard served his articles at Ernst & Whinney. He then joined Amalgamated Beverage Industries (Coca-Cola bottling company) at the Edwin Swales, Durban branch as chief accountant. After two years, he moved to Corobrik, a subsidiary in the Tongaat-Hulett Group where he was employed as the head office accountant. He was then promoted to financial director of Voermol Feeds, another subsidiary of Tongaat-Hulett Group. He later went on to join a smaller, foreign-owned textile company in Pinetown as financial manager.

Richard is a qualified chartered accountant. He started off by studying his passion – farming - and graduated with a degree in agriculture from the University of Natal. However not owning a farm, he realised that it would be many years before he could own his own farm so he ventured out into accountancy. That is when he obtained an Accountancy Science degree and Honours degree

So long, Richard Golding

in Accounting Science at UNISA.He chose this profession because he is good

in accounting and mathematics, and it was the most logical route to take. “I had just completed my national service and had zero savings, so had to get a job as soon as possible. With accounting, I was able to study whilst working at the same time”, expresses Richard.

Ensuring that the financial position of the co-operative is not compromised in any way is most challenging for him. However being able to present a solid set of financial statements to the board and members, and knowing they trust him, is most rewarding.

Richard has almost reached retirement age and leaves NCT with many memories. He wishes he could turn back time to a period when he can start out on his voyage of life again. He has enjoyed life and his time as NCT’s chief financial officer, and wishes he could do it over again.

“NCT is a great business with lots of potential and I urge staff and members to cherish, support and watch it grow,” he says.

“My main motto in life is the ‘if only’ principal”. Life goes by so quickly, and is very unpredictable, and you don’t want to look back in your old age and say “if only I had done things differently at the time”. By then it might be too late,” concludes Richard.

So long Richard and all the best in your adventures abroad.

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Certification against recognised standards is becoming increasingly important in timber markets. About 80% of South African plantations are certified under the Forest Stewardship Council® (FSC®) standard. The vast majority of these operations can be classified as large-scale and very few smaller timber plantations have achieved accreditation. However, this may change in the foreseeable future with the forestry industry becoming involved in the review of two forestry standards. These include (1) the government system of Principles, Criteria, Indicators and (2) Standards (PCI&S) and the FSC standard.

1. In 2015, government, in partnership with industry, reviewed of the National Forest Standard in terms of the National Forest Act (1998).

The brief for the review was to: incorporate current legislation; include indicators for climate change response measures; remove redundancy and streamline; improve relevance from an implementation perspective (particularly with respect to smaller operations) and produce a

South African forestry standardsCraig Norris, NCT’s Forest Technology Manager

draft standard based on revised PCI&S.

2. Draft documentation from this second review was made available for comment from December 2015 to the end of February 2016. The reviewed PCI&S can be used for developing an alternative certification system to the FSC.

In February 2012, the FSC approved version 5 of their Principles and Criteria (P&CV5). To phase in the use of this new version in a consistent way, the FSC also developed a set of International Generic Indicators (IGIs).

The process requires that a Standards Development Group (SDG) has to be nominated from interested and affected stakeholders to manage the transfer. The South African SDG has produced a first draft of the new South African FSC standard. Much attention is being given to ensure that this transferred standard is more appropriate to smaller scale operations.

These developments should result in forestry standards that are both relevant and achievable for all scales of forestry operations in South Africa.

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FRIENDS of NCT

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FRIENDS of NCT

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NCT has undertaken social investment initiatives aimed at bringing new hope and opportunity to previously disadvantaged communities.

Programmes are driven by NCT’s desire to improve the quality of life in these communities and to empower individuals and communities to build self-sufficiency and sustainability in the long term.

Its selection of projects reflect the organisation’s understanding of current good practice and hopefully make a difference to the most vulnerable in our communities.

NCT invests 1% of its pre-tax profit in community programmes. All projects are assessed prior to approval, on a case-by-case basis and are required to have documented objectives.

To date, NCT has reached out to over 70 communities in KwaZulu-Natal and Mpumalanga focussing on:

• Literacy and education (with particular focus on early childhood

development);

• Welfare of the most vulnerable especially orphans and HIV infected

children.

• Specialneedsequipmentforthephysically-andmentally-challenged.

• Foodsecuritywiththeestablishmentofvegetablegardens.

• Smallbusinessdevelopment.

• Basicinfrastructureatschoolsandhomeruncrèches.

NCT has also forged partnerships with

• PietermaritzburgCommunityChest

• DurbanCommunityChest

• SAMEFoundation(Section18acompanyfocussingonhealthcare)

• LiftingHands(Section21companyassistingcommunitiesinRichardsBay)

• LETCEE(focussingonearlychildhooddevelopment)

• MidlandsMeanderEducationProgramme

• SingakwenzaEducation&Health

FRIENDS of NCT

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STAFFAPPOINTMENTS

New appointments

Transfer from NCT Tree Farming

Colin SummersgillStrategic & Planning Forester, head office

Gladys TshabalalaMember Services admin clerk, Vryheid

Nkululeko Tabete Estate Forester, Melmoth Estate, NCT Tree Farming

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www.nctforest.com