Page 170 - KZN Top Business Portfolio 2018

NCT FORESTRY CO-OPERATIVE LIMITED

Patrick Kime
www.nctforest.com

LINKING INDEPENDENT TIMBER Wood Chips
GROWERS TO MARKETS NCT supplies timber into its four wood chipping
facilities that export their product to south-east Asia
NCT Forestry (NCT) is a marketing co-operative and India. Three mills are located in Richards Bay
catering to the needs of private and independent and one in Durban. The mills are wholly-owned by
timber growers. It is recognised as an international NCT and place a significant portion of South African
supplier of quality round wood timber, hardwood timber resources in an excellent position to access
pulp wood chips and is the largest forestry marketing overseas markets. This, in turn, contributes to better
organisation in southern Africa. NCT’s core area of pricing and financial returns for the private South
management and operation covers the province of African timber grower.
KwaZulu-Natal. Demand for NCT’s service, however, Biofuel
has resulted in its sphere of influence extending to the
Eastern Cape, Mpumalanga, Limpopo and Swaziland. NCT has limited access to international biofuel markets.
Ownership And Management Non-Pulpwood
As a co-operative (contrary to corporate type NCT offers its members the opportunity to trade their
non-pulp round log timber into a host of financially
principles), its members share in profits and own NCT. secure non-pulp market options - saw timber, treated
Membership of 1 800 shareholding members (made up poles, mining timber, charcoal markets. Its network
of large commercial operations and small-scale timber of registered non-pulp round log buyers/markets
growers), represent a total area of over 300 000 ha covers the three main timber growing areas in South
(21%) of afforested land in South Africa. Members Africa: Mpumalanga, KwaZulu-Natal and the Eastern
benefit from the wide range of services NCT offer Cape. This market constitutes 6% (or 115 000 tonnes)
and also qualify for bonuses based on their patronage of NCT’s total sales volumes into 50 different national
and committed supply, depending on available markets.
financial reserves.
Contribution To Society
NCT is managed by a team of professionals who offer NCT’s approach to corporate social responsibility focuses
its members a unique blend of expertise in the various on the impact it has on rural communities, conserving
aspects of timber growing, transport and marketing. our natural heritage and reducing our environmental
Its board of directors (all private timber growers), is footprint.
selected by members and include black directors who ƒ Members are encouraged to set aside
represent black grower constituencies in Richards Bay conservation areas - 27% of NCT-owned land is
and the KwaZulu-Natal midlands. They play a pivotal managed as an open area.
role in ensuring that the Co-operative’s black member ƒ Forest certification schemes are offered
base is represented in all decision-making processes. to members to ensure that good forestry
practices are implemented.
MARKETS ƒ NCT plays an active role in protecting
the endangered Oribi antelope by
Pulpwood encouraging members to preserve natural
Hardwood timber destined for pulpwood is NCT’s grassland habitats.
predominant product, sold into various wood chipping ƒ NCT works towards improving the capacity
plants. In some instances, NCT also markets timber to of communities and private farmers to manage
local corporate pulp and paper markets. their land sustainably.

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