Forest Certification in South Africa A Case Study of Plantation Forestry

1. Forest Certification in South Africa A Case Study of Plantation Forestry Cori Ham Ukwazisa Consulting coriham@mweb.co.za

2. Content • Forestry in SA • Certification background • Challenges • Reaction to certification • Effects of certification • Conclusions

3. Forestry in SA

4. Plantation Areas

5. Plantation area by Species Total – 1,351,402 ha

6. Plantation area by Ownership Privatised since 1999 Only 85 000 ha still Government 1 800 timber farmers 19 000 small/ micro growers 12 Timber companies 4 new from privatised plantations

7. Plantation area by Certification status Certified Area 1,088,071 ha (80.5% of total)

8. Processing industry • Total annual sale of forest products – R 13.8 billion • Net exporter of forest products – R11.2 billion per annum • 182 processing facilities • 113 Chain of Custody certificates

9. Certification background

10. Reasons for certification • Show world that SA timber produced to international standards • Market expansion • Reaction to a demand for certified timber (B&Q) • Respondto domestic critics by demonstrating 3rd party audited environmentalstandards • Public relations - reputation

11. Company response • Initially slow • Vertical integration did play a role • Market -> Processing Divisions -> Forestry Divisions • Mondi Forests first in 1996

12. Institutional design • Government not involved in certification process • Forest industry driven as self regulatory process based on market forces • Need for set of regulatory minimum standards • National Forest Act of 1998 • PCI&S process started in 2001

13. Current standards • No national standard • Generic checklists of CBs • SGS Qualifor • Soil Association Woodmark • National standard documents • Forest Engineering & Environment • National laws

14. Challenges

15. Small scale micro growers • Manage small areas (1 to 2 ha) • Illiterate – difficult to comply with administrative requirements • Costs • Company outgrower schemes • Independent growers • Could be derived of livelihood incomes

16. HIV/AIDS • Greatest risk to social and economic sustainability • Up to 39 % infection rates amongst forest workers • High rates of absenteeism • Medical costs, families • Deaths and training • Companies are reactive

17. Reaction to certification

18. SA Consumers • Totally ignorant about certification • No knowledge or demand

19. Supply chain FSC certified plantation CoC Primary processor CoC Secondary processors Garden furniture, knock down furniture, veneer, etc. Unspecified timber to local wholesalers/retailers (might be certified but not marked as such) Export certified timber, pulp, chips Export certified products to DIY stores in UK, USA, Germany, etc.

20. Effects of certification

21. Environmental effects • Change in attitude • Embrace environmentally sustainable management • Better forest management • Water monitoring • Riparian zones • Roads • High conservation value areas • Biodiversity

22. Social effects • Speed of social change • Stakeholder consultation and social benefits • Incorporation of outsourced operations

23. Economic effects • Market advantage but no premiums • Securing existing markets • Improved marketability • Transparency

24. Power dynamics • Large companies forced to consult with communities and other role players • Marginalise small scale timber growers • Could make it impossible for them to do business

25. Conclusions

26. Conclusions • Certification is approaching maturity • Critical issues: • Small-scale timber growers • Lack of national standard • HIV/AIDS • Lack of domestic market and interest in certification

27. Conclusions (2) • Positive attitude towards certification • Seen as way of effectively managing plantations • SA forest industry could serve as example for others in terms of speed of adoption