The Forestry Sector remains highly competitive locally, frequently outperforming other agri-sectors competing for the same space. What sets the Forestry Sector apart is that while it only utilises one percent of the country’s surface, the Sector contributes R64 billion to the South African economy – representing 10.4% the agriculture Gross Domestic Product (GDP) and 25% to agriculture employment. All while utilising only 5% of the total water used by the agri-sector.

The challenge for our Sector is remaining competitive in an international context. Currently, the South African Forestry Sector represents just over 1 % of the world’s commercial forestry, a figure likely to decline with the predicted 1.8% annual growth of the international sector (Barau et al 2014), which far exceeds the expansion of the South African Forestry Sector. Added to the challenge posed by economies of scale, the South African Forestry Sector also competes with countries that enjoy extensive government support, subsidies and protectionism in the form of tariffs.

To compensate for this, the South African Forestry Sector relies on research, development and innovation to remain globally competitive and sustainable. Through strategic research partnerships, investment in high-quality science and innovation and consciously building research capacity, our Sector is able to enhance both economic performance and environmental resilience.

Through Forestry South Africa (FSA) and its structures, the Sector has been able to develop and implement strategic research focus that benefits all its members, irrespective of their diverse sizes, ranging  from multi-national to corporates, timber farmers and small scale growers, and management objectives. FSA’s collective research investment is therefore prioritised to ensure all timber growers benefit from the research outputs, which focuses on both  technological advancement and securing capacity. This has allowed our Sector to remain responsive and resilient in addressing new challenges or threats.

Historically, forestry research was the sole mandate of the government, through the South African Forestry Research Institute, but as the ownership environment changed there has been a marked divestment by government into forest research. Slowly but surely, all government funding ceased early 1990’s until 2005. During this period, the private sector became the sole investor into forest research. It is important to note that the Sector is currently investing 1.7% of its GDP into research. This is not only more than double the country average, but even with limited government funding, forestry research remains relatively competitive with our international competitors.

This significant investment has built a wealth of internationally recognised research capacity, mainly housed at Higher Education Institutions (HEIs) with some stand-alone institutes offering a very diverse set of research focus areas and subject matter. This has allowed the Sector to move from multi-disciplinary to multi-institutional research, harnessing the value of its collective and collaborative efforts that extend beyond our borders by partnering with leading international networks and collaborations.

In recent years, a gradual increase in government research funding in our Sector has enabled it to harness a triple helix approach to research and innovation. Where the private sector remains the predominant funder of research but obtains additional co-funding from government that allows both the Sector’s needs and national imperatives such as job creation and transformation, to be addressed. In addition, working collaboratively with HEIs, the Sector is able to utilise the wealth of post-graduate students performing excellent work under the supervision of world-renowned scientists. This model does not only ensure a cost-effective approach to Sector competitiveness, it also contributes to a pipeline of new capacity ensuring sustainability of the research ecosystem going forward.

International competitiveness is not only secured through research aimed at technological advancement that results in increased yield, reduced input costs and protection of growing stock. The Sector invests significantly in ensuring environmental sustainability, directing the research focus on sustainable management practices, resource conservation, life-cycle assessment and ecosystem-level productivity. Looking forward, environmental sustainability will play an increasing role in international competitiveness as it becomes a license to operate and the access requirement to enhance international markets. It is therefore imperative to actively invest in research, development, innovation and capacity that ensures environmental sustainability remains a central pillar of South African forestry.

South Africa, even though a small player in the international commercial Forest Sector landscape, remains globally competitive through its committed and sustained investment in forestry research, development and capacity. Through collective and collaborative interdisciplinary and inter-institutional approaches, strategic application of research funding and international partnerships that ensure the generation of world class innovations, South African forestry has created the perfect blend of academic excellence, industry investment and practical application positions. It is this that positions South African forestry as  a resilient player in a truly competitive global market and notable contributor to forestry research and innovation.