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July 2016
Sawmilling South Africa News
Well the July holidays have come and gone and so now its heads down to the end of the year, can you believe it. July has proved to be a quiet month as expected with many sawmillers taking a mid year break but this does not mean that things came to a stand still. Reports from the market were that the demand for structural lumber remained vibrant and most sawmills reported lower than expected stock levels. This is good news going into the second half of the year as we all know that demand for our products usually increases towards December.
We believe that the market for industrial timber and especially the packaging sector has piked up nicely and millers are also expecting a better second half of 2016.
News from Dianne, our “skills development” lady is that we are still making good progress with both the Saw Doctor and Kiln Operator course development and we are about to start on the Log Yard, Wetmill, and Drymill operator functions. The first meeting of the “experts” for these three will take place next week in Port Elizabeth. A big thank you must go to those sawmills who have given their own or their experts time for the process. SSA must ask all members to remember that all the work going into this skills development will translate into training soon and we expect millers to support the initiative by making liberal use of the training that will be provided by the various training schools. Dianne will be available to assist individual mills with their discretionary grant applications in future so as to make sure that they receive due compensation for the training that they do.
The association was asked to participate in a Governmental “Pakisa” or strategy think tank, during the month. This was a two day session requested by the Deputy Minister of Agriculture, Forestry and Fisheries and was designed to address current and future blockages or inhibitors to forest and forest product development, especially in the light of the fact that our sector holds such huge potential for job creation.
The bottom line here is that government have finally recognised this potential and are at last trying to address issues such as the burdensome forest licencing system and restrictive legislation around environmental issues. The current debate with the DEA regarding the AQA is just such an example. At last government is getting serious about our industry.
We once again make an appeal to all millers out there to submit any news to us here at the SSA office that they think their colleagues in the industry would be interested in, even births, marriages and deaths etc. In the mean time keep cutting straight and drying flat.

In the mean time keep cutting straight and drying flat until next month.

Roy Southey
Executive Director: Sawmilling South Africa
Feature article
AGFO-rum at the AGFO Expo!

An exciting forum not to be missed and an absolute must to attend! 
If you want to know what lies in wait for the Economy post municipal elections, issues impacting the agricultural and forestry sectors and the broader economy in general, then join us at the
AGFO-rum on Friday, 20 October.
The programme on the day includes economic overviews by two renowned economists, overview of the macadamia industry and its future sustainability, factors impacting on family businesses and much more. 
Dr Roelof Botha, economic advisor to PwC and a winner of the prestigious Finmedia Economist of the Year Award, will attempt to allay any undue fears over the future by focusing on the following (inter alia):
  • The likelihood that coalition governments in some large municipalities may eventually improve the levels of corporate governance & service delivery
  • Imminent lower inflation as a result of rand strength against the pound and the euro, which should halt the upward movement of interest rates
  • Why a credit rating downgrade need not be feared
  • A revival of the commodity price cycle, which will impact positively on mining and other sectors of the economy
  • The democratic dividend (in terms of higher per capita incomes)
Ernst Janovsky, head of Absa AgriBusiness since 2008 and a well-known speaker on agricultural economics, is one of the most respected agricultural economists in South Africa who will address the audience on (inter alia):
  • An overall economic outlook on the Agricultural sector
  • The competitiveness of South African Farmers compared to other countries
  • The effect of the droughts and opportunities
  • Factors behind the decline in farmer numbers
  • What is needed to draw investors to South Africa
  • The effect of political policies on the agricultural sectors
Pierre Cronje, a partner at PwC, will share his insights into the family business within the agricultural context.  Alan Sutton, managing director at Valley Macadamias will lead the discussion on the future sustainability of the dried fruit and nut industry. 
The AGFO Expo organisers are indebted to:
  • PricewaterhouseCoopers for sponsoring the participation of renowned economist, Dr Roelof Botha and Pierrie Cronje,  
  • ABSA Bank for sponsoring the participation of the well-respected Ernst Janovsky
  • Golden Valley Macadamias for the Gold Sponsorship to the AGFO Expo!
Don’t miss out on the important networking opportunity. This AGFO-rum is free to all AGFO Expo visitors but SPACE is limited to 250 seats and subject to pre-booking. Book your space now at to avoid disappointment.
National News
The benefits of pre-fabricated timber roof trusses
The Institute for Timber Construction (ITC-SA), SA's professional body & regulator of the engineered timber structure industry, offers insight into the benefits of pre-fabricated roof trusses & how to prevent costly & potentially dangerous situations arising from having a non-compliant, site-manufactured roof installed by an erector that is not ITC-SA accredited. read more
Border Timbers resumes timber exports to Zambia
Harare – Zimbabwe Stock Exchange-listed group, Rift Valley Corporation’s subsidiary, Border Timbers Limited (BTL) has resumed export of treated poles to Zambia, as the company seeks to expand its revenue base and to return to profitability, a source at the company told The Southern Times. read more
AZA16 - 6th Annual SA Architecture Conference
AZA16 is a 3-day architecture & design festival, showcasing 6 international & 20 local speakers, over & above workshop & tour leaders. The programme intersperses keynote lectures with parallel sessions which offer delegates a choice of design & professional practice streams. read more
Institute for Timber Construction to exhibit at Interbuild Africa 2016
The Institute for Timber Construction (ITC-SA), South Africa’s professional body & regulator of the engineered timber structure industry, is set to attend Wood World, Interbuild Africa 2016, which takes place from 17-20 August at Expo Centre Nasrec in Johannesburg. read more
Productivity & Profits ‘in the pipeline’: BLM’s versatile fibre laser technology makes tube fabrication faster & more cost-efficient
First Cut, distributors of cutting consumables and capital equipment to the South African market, is very focused this year on introducing the benefits of innovative fibre laser technology and 3D laser cutting machines to the local tube industry. read more
Wood Conference - JHB - 17 Aug 2016
The WOOD Conference Cape Town has established itself as one of the most important conference in sustainable construction in green building concept in South Africa. Due to the positive resonance in Cape Town, on 17 August 2016, the success story of the WOOD Conference continues in Johannesburg. read more
International News

Strong growth for Wood-Plastic Composites
This market has nicely matured with a broad spectrum of quality products, including decking, fencing, railing, trim & automotive parts, and its growth pattern is strong. This according to a new study from India-based global market research firm MarketsandMarkets... read more

One of the world’s largest biomass fired plants to open
Fortum Värme, a company jointly owned by Finnish energy firm Fortum & the city of Stockholm recently inaugurated a new biomass-fired combined heat and power (CHP) plant on the shores of Värtan. The Värtan CHP8 (130 MWe, 280 MWth), will begin commercial operations in the fall. The plant will use forest residues & wood waste - sawdust, bark, & logging residues... read more
New Zealand log prices drop
The average wharf gate price for New Zealand A-grade logs dropped to NZ$116 in June, from NZ$120 a tonne in May, according to AgriHQ’s monthly survey of exporters, forest owners and saw millers. That’s the lowest level since January’s NZ$115 a tonne. read more
New Zealand farm foresters could grow hardwood
New Zealand farm foresters have the opportunity to grow hardwood rather than import it, a forestry researcher says. Speciality Wood Products program manager Marco Lausberg said New Zealand had the chance to grow its own trees, rather than relying heavily on imported hardwood, such as kwila for decking or other hardwoods for furniture. read more
$30m to fire-proof the forests
The Australian Forest Products Association has released an important new policy proposal that details an innovative approach to help reduce the risk of bushfires. This policy builds on the strong recommendation contained in the Forest Industry Advisory Council’s (FIAC) final report ‘Transforming Australia’s forest products industry’... read more
World's first 3D-printed office opens in Dubai
The world's first 3D-printed office building has opened in Dubai, Reuters reports. The 2,700-square-foot, single-story building was built in just 17 days using a gigantic, 20-foot tall 3D printer and a special mix of concrete, fibre reinforced plastic and glass fibre reinforced gypsum.
read more

North American sawmills losing market share in Asia
"With continued low construction activity in Europe it is no surprise that European sawmills are looking for new markets," says Jenny Wessung, CEO at Woodstat. Southeast Asia is one of the markets in focus and not just China. South Korea, India, Taiwan and other countries in the region are increasing the import of softwood lumber from Europe. read more
Canada may face sawmill closures
Canadian jobs & sawmills across the country are increasingly at risk because of fading prospects they will avoid a new round of U.S. duties on imported softwood lumber, according to an industry analyst. RBC Capital Markets analyst Paul Quinn says he expects the United States will impose duties of at least 25% in mid-2017 and that will put pressure on Canadian producers. read more
On-line Sawmill Directory
Smile :-) its free.....

An Irishman who had a little too much to drink 
is driving home from the city one night and,  
of course, his car is weaving violently all
over the road.
A cop pulls him over.  
"So," says the cop to the driver,  
Where have ya been?" 
" Why, I've been to the pub of course,"  
slurs the drunk.  
" Well," says the cop, "It looks like you've
had quite a few to drink this evening."  
"I did all right," the drunk says with a smile.  
"Did you know," says the cop, standing straight and  
folding his arms across his chest,  
"That a few intersections back, your wife fell out of your car?" 
"Oh, thank heavens," sighs the drunk.  
"For a minute there, I thought I'd gone deaf."
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+27 21 712 1151
Copyright © 2016, SSA, All rights reserved.

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SSA · Forest Lodge, Sedgefield · Knysna, Western Cape 6573 · South Africa

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