Timber iQ August - September 2019 // Issue:45 | Page 38

FEATURES
Project Grow helps small farmers overcome the entry barriers
associated with tree farming. These include the significant
expense of purchasing seedlings and fertiliser as well as
harvesting and transport. Some of these barriers are overcome
by ensuring that growers have access to interest-free loans to
cover farming input costs and annual maintenance, and by
providing advances for work carried out throughout the eight
to ten-year growing cycle.
Challenges are inevitable in any business environment,
regardless of its size. According to Mahlangu’s study, some of
the challenges faced by small scale timber operators include
marketing, harvesting and transportation, coping with risk,
theft, runaway fires and exploitation among others. Of these
challenges, coping with risk is the challenge which most
small-scale timber operators identified with. The growing cycle
of trees is an example of a risk factor.
Dave Dobson, a director from Umziki Forestry Consulting,
mentions that the long wait from planting to harvesting is a
major challenge for small-scale operators, specifically from an
income point of view. “A new grower will require an alternative
source of income while waiting,” he says. Dobson adds that
once the trees are mature and ready for harvesting, the next
challenge for small-scale operators is marketing.
State forest restructuring also creates serious challenges
because of the uncertainty in terms of accessing timber
contracts. Another challenge which Mayer alludes to in his
article, is the adequate representation of small-scale mills
through sawmilling associations. “Even if such an association
were to exist, it is unlikely that it would be able to adequately
represent the issues and needs of such a broad membership. As
with contracting in the forest industry, information flows to,
and amongst millers, is weak,” the article reads.
“The problem that needs to be addressed is that of
beneficiaries in land restitution cases. Many have failed
because the Department of Land Reform does not have the
ability to guide the new landowners,” adds Dobson.
Adequate skills and financial capacity are other challenges
faced by small-scale timber operators. Established timber
operators have the financial capacity to employ industry
specialists to work in their operations. Unfortunately, this is the
opposite for small-scale timber operations, where owners
often run the operations themselves. In some cases, the owners
Project Grow helps small farmers overcome the entry barriers
associated with tree farming.
sawmilling sub-sector. The first is formal businesses, which
would be a milling company consisting of permanent staff,
casual workers and transport infrastructure.
On average, businesses in this category made an annual
turnover of half a million rand. In addition, the article explains
how formal businesses made a significant contribution to
meeting the ‘demand of downstream processors for industrial
timber as well as supplying the regional markets with building
timber and final products such as pallets’. The second miller
type was micro-millers that relied completely on short-term
contracts to make a living. Annually, micro-millers made a net
profit below R50  000.
Western Cape based Logo Homes specialises in timber
frame design and construction According to Ben Paine, director
at Logo Homes, the business has been operating since 1993. “It
has its roots in the Elgin Valley/Grabouw region from which the
majority of its skilled staff are drawn. Its factory and offices are
now based over the mountain in the Helderberg,” says Paine.
Paine explains that quality products at an affordable price,
combined with an experienced staff complement, have given
the company a competitive edge and kept it going for all these
years. “We are very happy to build from other architects’
designs but also offer inhouse designing and council
submission which makes it that much more cost-effective for
our clients. We always add in that extra detail that doesn’t cost
much but makes a real difference to the overall look and feel of
the house.”
Sappi’s Project Grow is another example of a small-scale
timber operation. After communities or individuals have
selected land for growing eucalyptus trees, site assessments
are conducted to ensure that plantings do not take place in
environmentally sensitive areas, and that planted areas are
economically sustainable. Sappi then provides the growers
with sponsored seedlings, grown by Sappi nurseries, to ensure
only the best available quality genetic material suitable for the
growing conditions.
Qualified extension officers are employed by Sappi, who
provide technical advice to growers, regarding preparing,
fertilising and planting, as well as weed control and the
preparation of fire breaks. Certain entrepreneurial skills such
as negotiating with contractors and handling money matters
are also offered to assist growers. At harvesting time, Sappi
buys the timber from the growers and pays them a market-
related price.
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AUGUST / SEPTEMBER 2019 //
INDUSTRY-RELATED CHALLENGES AND
GETTING AROUND THEM
Small-scale saw milling is an example of a small-scale timber
operation.
www.timberiq.co.za