Transcript Forestry & Land Reform in KZN

Future Trends In Forestry Industry
and Implications for Skills
Development
Michael Peter and Roger Godsmark
Forestry Industry Skills Forum Meeting
Durban, 20th & 21st August 2008
Presentation Outline
The Current Situation
Challenges Facing Industry that Influence Skills Needs





Transformation Charter
Industry Growth Strategy
Forest Protection (pests, diseases & fires)
Employment Issues - HIV/ Aids
Land Reform
Implications for Industry’s Skills Development Needs
Conclusion
Section 1
The Current Situation
Current Situation 1
From a plantation perspective
Ownership of plantations mainly in hands of corporate
growers and individual commercial farmers
Most plantations are FSC certified
Physical footprint of Industry shrinking
Very little new afforestation over past decade
Increase in damage by pests, diseases and fires
Severe shortage of timber currently
Decreased plantation production
Current Situation 2
From an employment perspective
Most employees in industry either work for contractors
or are self-employed small growers
A vast majority of employees are unskilled
Forestry seen as employment of “last resort” for
unskilled workers
Turnover of staff is very high
Current level of mechanisation is low but increasing
HIV/Aids infection rate amongst workers is concerning
The Industry is losing skills at an alarming rate
Section 2
Challenges Facing the Forestry
Industry that Influence Skills
Needs
Section 2A
Transformation Charter
Forest Sector Transformation Charter
The Charter, signed on 22nd May 2008 will have
be a major influencing factor on the Industry
In terms of skills development, main areas of
influence will relate to the following
Change in ownership of Industry
Employment policies
Skills development initiatives
Enterprise development
Forest Sector Transformation Charter
In terms of skills development, main
commitments made are as follows
Development of skills development strategy
 Strengthen national framework for skills development
 Strengthen sector capacity to deliver on the above
 Promote skills development opportunities for youth & new
entrants
 Ensure strategy linked to transformation and growth
strategy for the Sector
 Identify projects that can access NSF funding
 Ensure skills development targets support BEE targets
Industry contributes 4% of payroll to skills dev.
Section 2B
Industry Growth Strategy
Industry Growth Strategy
The “National Industrial Policy Framework” has
identified the Forest Sector as a strategic
Industry. In terms of this the dti has developed
a growth strategy for the sector
Amongst other things it envisages the following:
New afforestation in KZN of at least 40 000 ha
creating 15 000 jobs
New afforestation in the Eastern Cape of at least
100 000 ha creating 26 000 jobs
All of this will be undertaken by “emergent growers”
Section 2C
Forest Protection
Forest Protection Issues
Major challenges:
Pests & Diseases
 Sirex Wood Wasp
 Thuamastocoris (Bronze Bug)
 Leptocybe (Gall Wasp)
 Fusarium (Pitch Canker)
Damage
Forests R150m
Processing R612m
Damage 2007
Fire Protection
Forests R2bn
Processing R6bn
Damage done has escalated dramatically over
the past few years and will continue to do so
Fire Damage to Plantations
1980 to 2007
90
80
2007 fire damage three
times long-term average
Thousand Hectares
70
60
50
40
30
20
10
06
20
04
20
02
20
00
20
98
19
96
19
94
19
92
19
90
19
88
19
86
19
84
19
82
19
19
80
0
Years
More attention will have to given to this issue
Section 2D
Employment Issues
Employment Issues
Major challenges:
Forestry seen as employment of last resort
Large percentage of workers are illiterate and innumerate
Huge turnover of staff
Prevalence of HIV/Aids
At higher level, brain drain is sapping skills
Becoming more difficult to hire, train & retain staff
Section 2E
Land Reform
Land Reform 1
Of all the challenges faced by the Industry, this
has the potential to radically change the face
of the Industry because:
The ownership of the Industry will change dramatically – as
much as 50% of the current plantation could be under claim
The sustainability of the new ventures may be at risk
We must not jeopardise the future of the Forestry or the
Forest Products Industry
Land Reform 2
Major challenges:
Most land reform projects thus far have not been
successful because of the:
Lack of effective post-settlement support
Lack of beneficiary management / business/ technical skills
Lack of access to finance for working capital
Of the above, lack of skills identified as major problem area
Section 3
Implications for Industry’s Skills
Development Needs
Section 3A
Likely Impact of Challenges on
Industry Affecting Skills
Development
Likely Impacts of Challenges on Industry 1
Transformation Charter



Shift in land ownership to new beneficiaries
Increased focus on skills development (4% levy)
Creation of new SMME’s
Industry Growth Strategy


Net increase in plantation area of up to 140 000
hectares
Creation of over 40 000 new jobs (mainly growers)
Forest Protection


Threats will increase
More focus / resources on protecting what we have and
getting more production out of what we have
Likely Impacts of Challenges on Industry 2
Land Reform



Huge shift in ownership pattern through land restitution
process (fragmentation of Industry ownership)
Large number of beneficiaries will enter the Industry
Increased focus on providing post-settlement support
including agric support
Formal Employment



Will become more expensive to hire people
Will probably decrease as shift of work undertaken from
contractors to new beneficiaries
Operations on non-claimed land will become more
mechanised
Section 3B
Implications for Industry Skills
Needs
Main Implications for Skills Needs 1
Transformation Charter: Focus Areas




Corporate & Govt: Extension officer training
Farmers: Mentorship training
New Owners: Low level technical & business skills
Contractors: Business Management
Industry Growth Strategy: Focus Areas


Corporate & Govt: Extension officer training
New Owners: Low level technical & business skills
Forest Protection: Focus Areas


Corporate: Scientists (entomologists & pathologists)
All : Firefighting training
Main Implications for Skills Needs 2
Land Reform: Focus Areas




Corporate & Govt: Extension foresters, tree breeders
Farmers: Mentorship training, retraining of ex-staff
New Owners: Low level technical & business skills
Contractors: Business management
Formal Employment: Focus Areas




Corporate & Govt: Foresters, environmentalists
Farmers: Business management
Contractors: Machine operators
All: HIV/Aids, ABET, technical skills etc.
Section 3C
Industry Initiatives
Industry Initiatives
Establishment of a Forestry Growers “Support Agency”

Discussions have been initiated regarding the creation
of this Agency. It is envisaged that this Agency would
follow a “PPP” model involving the Industry, DWAF and
other bodies such as the IDC.
 The objective of the Agency would be to provide
effective and meaningful post-settlement support to
new land reform beneficiaries to ensure that projects
were sustainable.
Establishment
of an Industry “Skills Development Fund”

Initial discussions have taken place regarding the
creation of this centralised fund. It is envisaged that it
would be a voluntary fund that would utilise the
additional 3% training levy committed to in the Charter.
Section 4
Conclusion
Conclusion
We will all have to recognise that the future
environment in which the Industry operates will
be very different from what it is today.
The overriding change will be the structure of the
Industry brought about by Land Reform and
the Industry Growth Strategy
A lot more focus and resources will thus have to
be put into providing appropriate skills to new
timber growers. This will require all involved,
especially education and training providers, to
adapt to the changed circumstances.
Thank You