Issues and opportunities for small-scale sawmilling in South Africa – An Eastern Cape case study

Abstract

The softwood sawmilling industry processes approximately 4.1 million m3 of pine logs every year. Small-scale sawmillers which account for 67% of the total number of establishments process only about 11% of the annual log intake. The major drivers for softwood sawn timber demand are the building and construction, manufacturing and consumer expenditure sectors of the economy. The industry is characterised by mature products and low growth. This low growth pattern has been in place for decades. Cyclical upswings occur from time to time, but essentially growth is dependent on trends in local (domestic) consumption. Notwithstanding periods of increased building activity, palletisation of fruit and citrus exports, continued emphasis on product development, etc., the capacity of the domestic economy to create a substantial “pull” effect is considered extremely limited. Growth in domestic demand has averaged 1-2% per annum for decades, and many 7 past prognoses of a “kick-start” in this growth pattern have been widely off the mark