The NCT Story

TONY FARROW I NGR I D F ERGUSON

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TITLE The NCT Story

AUTHORS Tony Farrow Ingrid Ferguson

CONCEPT AND DESIGN Equinym Publishing (Pty) Ltd Pietermaritzburg, South Africa

COPYRIGHT RESERVED All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical photocopying, recording or otherwise, without the prior written permission of the copyright owner. Although the greatest care has been taken in the compilation of the entire contents, the publishers do not accept responsibility for errors or omissions. Whilst we believe that permission for reproduction of all material in this book has been properly dealt with, there are a few illustrations whose copyright ownership is unclear. If reproduction rights are claimed to any of these, the publishers will be pleased to correspond with the claimant and make any arrangement which may prove appropriate. TERMS OF REFERENCE To obviate an impedance of the natural flow of language, terms have been simplified wherever possible. This is particularly so in the use and spelling of the words “ton” and “tonnes” – “ton” being in use prior to metrication in South Africa in 1961 and “tonnes” thereafter. REPRODUCTION Multigraphics CC – Pinetown, South Africa PRINTING AND BOOKBINDING Interpak – Pietermaritzburg, South Africa TYPESETTING Set in: Stone Serif 11pt on 15 Headlines: Stone Serif Bold 25pt Captions: Stone Serif Italic 9pt on 10.8 Printed on Magno Matt 170gsm

NCT’s sphere of influence by 1999 The members’ plantations cover a vast 200 000 hectares.

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ISBN 0-620-24928-5 First Edition Copyright NCT © October 1999

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P R E F A C E

C O N T E N T S

In February 1999 NCT Forestry Co-operative Limited celebrated its golden jubilee – a half century of operations. This does not make it the oldest co-operative in South Africa nor the biggest – although it is the largest private timber organisation of its kind in the country. But size and age do not necessarily contribute to success. And success and growth is just what have been achieved since its humble beginnings fifty years ago. NCT is owned and directed by timber growers. This makes it a very personal type of organisation, its achievements being credited directly to its members and staff. An observation passed is that over the years it has seldom been necessary for the chairman of the board to call for a vote when there has been a difference of opinion amongst the directors. In most cases when dissension has arisen, the issue has been settled by consensus, and when a vote has been taken those in the minority have always accepted the majority’s decision. Such a democratic approach has probably contributed immeasurably to NCT’s prosperity over the years. The following pages tell in brief the story of an organisation which has followed a dynamic path, at times tempered with discretion, which in turn has made it the body it is today.

Letters of congratulations The Late Forties • visionaries

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The Fifties • in business

11 14

The Sixties • wattle-bark quotas introduced The Seventies • a central timber co-operative 15 The Late Seventies • oversupply leads to exports 19 The Saga of the Teti-N 20 Making an impression on timber over the years 24 The Eighties • membership and markets increase 26 A lament on metrication in the life of a farmer 27 Droughts and floods lead to undersupply 28 A look back in time to a bygone era 30 Everyone wants to join the party 32 Offices of NCT around the country 34 The people who shaped NCT 36 NCT Tree Farming (Pty) Ltd 39 The Nineties • timber on the move 40 NCT • 1999 42 Moving • with the technological times 44 NCT • 50 years ... and still growing 45 NCT celebrates 50 golden years 46

Tony Farrow Researcher of the NCT Story

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Southern African Timber Growers Association Suider-Afrikaanse Houtkwekersvereeniging

211 Burger Street - P O Box 803 - Pietermaritzburg 3200 - Telephone (0331) 451366/7 - Fax 421076 - Telegrams SATGA Burgerstraat 211 - Posbus 803 - Pietermaritzburg 3200 - Telefone (0331) 451366/7 - Faks 421076 - Telegramme SATGA

Directorate: Business and Institutional Development Delpen Building, C/o Annie Botha and Union Street, Riviera, 0084 E-Mail:User59@nda.agric.za

NCT’ S 50TH BIRTHDAY

In congratulating NCT, on behalf of SATGA, on its achievements during 50 years of service to its members, it might be appropriate to reflect on some of the developments along this path. At the time SATGA was formed, NCT had been operating for some eight years. It was not very long before it became apparent that if SATGA was to be effective, it would have to rely heavily on the support of the timber co-operatives in existence at that time, one of which was NCT. The early records of SATGA refer to the active role played within SATGA by people such as Mr H F C (Heine) Küsel and later Mr P V (Volly) van Breda, both of whom also served as Chairmen of NCT. All the subsequent Chairmen of NCT also made significant contributions to the work of SATGA as members of the National General Committee and in many other ways. More recently, the current Chairman of NCT, Dr Carl Seele, took on the additional role of National Chairman of SATGA for eight years. One of the most significant developments in the history of non-corporate timber growers of South Africa was undoubtedly the establishment of the Central Timber Co-operative, and the woodchip export contract with Sumitomo Corporation, Japan. Once again, NCT was a major role player in CTC, and continues in that capacity. The scrapping of the statutory levies on all sales of timber in the round, on which SATGA relied for its income for many years, in 1993, necessitated a major change in SATGA's funding base. At that stage NCT generously undertook to make a substantial contribution to SATGA, in return for which all NCT members were offered membership of SATGA. This contribution represents a large share of the Association's revenue, and this very positive support is greatly appreciated by SATGA. Provision was also made for NCT and other organizations serving the timber growing sector to become corporate members of the Association. Apart from its basic function of marketing its members’ timber, NCT has ventured into many other activities aimed at expanding and improving the services available to its timber growing members. Examples are its extension services, support of research projects and certification of forest products, to name but a few. NCT has indeed come a long way since its inception in the offices of Union Co operative Ltd at Dalton way back in 1949. SATGA pays tribute to NCT for the substantial achievements realised in the past 50 years. SATGA also acknowledges with appreciation the tremendous support it has received from NCT, and extends its very best wishes for even greater success during the next 50 years.

The Chairperson and Directors NCT Forestry Co-operative Limited P.O. Box 1445 PIETERMARITZBURG 3201

Sir

It gives me great satisfaction to be able to congratulate you on the 50th anniversary of NCT.

I would also like to thank NCT for the services it has rendered to its members during the period of fifty years. The co-operative has succeeded in stabilising members in their timber operations. Furthermore NCT during those years initiated various projects which enhanced members' timber farming interests. Those initiatives of NCT were also beneficial to the timber industry in the country. NCT is regarded as a leader in the timber industry.

I wish NCT and its board and management every success in the years ahead.

Yours sincerely

J. B. FERGUSON

PlETERMARITZBURG

DIRECTOR

21 MAY 1999

Prevent Forest Fires - Voorkom Bosbrande

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RAF/lf

1 September 1999

NCT Forestry Co-operative Limited P.O. Box 1445 PIETERMARITZBURG 3200

The General Manager NCT Forestry Co-operative Limited 346 Burger Street PIETERMARITZBURG 3201

Dear Sir

NCT’S 50 th BIRTHDAY

May I take this opportunity of congratulating you, your growers, Directors and staff on the occasion of your 50 th anniversary.

My warm wishes on the occasion of your 50 th birthday. NCT has played a key role in the development of South Africa’s forest sector over the past five decades. The Department of Water Affairs and Forestry believes that smaller timber growers make an important contribution to the supply of timber and to the diversification of the timber market. Our Department believes that, under the correct conditions, plantation forests can make an excellent contribution to South Africa’s economy and to rural development.

The private timber grower is the backbone of CTC’s business. Without them we would not be able to achieve our long term goal of a consistent, stable supply to our customer. I wish to express my sincere thanks to all those growers who have supported CTC since its inception. I hope that this established relationship will continue into the new millennium and beyond.

Best regards

On behalf of the Department, I wish you continued success and I look forward to your ongoing efforts to ensure that all South Africa’s people are represented in the forest sector.

LAEL BETHLEHEM CHIEF DIRECTOR: FORESTRY DEPARTMENT OF WATER AFFAIRS AND FORESTRY DATE: 26 MAY 1999

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NCT Head Office, Pietermaritzburg, 1999 • Watercolour painting by Arthur Orme

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The Minutes of the Farmers’ Meeting held in the Agricultural Hall, Dalton on 24th November 1948 for the purpose of forming a Timber Co-operative

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THE LATE FORTIES • visionaries

I n the beginning , there was only wattle bark. No one was particularly interested in the timber. Tannin was the reason for the existence of many timber farmers in South Africa during the years following World War 2 and the marketing of timber was unco-ordinated and haphazard. On November 24th 1948, a group of 28 timber farmers in the Umvoti and New Hanover areas got together under the auspices of the Union Co-operative Limited (then known as the Union Co-operative Bark and Milling Company Limited). Led by Mr H F C (Heine) Küsel, they discussed the problems they were experiencing trying to negotiate the sale of their timber. As individuals, their bargaining power was weak. As a united group, marketing their timber collectively, they stood a better chance. As the regulations of the Union Co-operative prohibited trading in this type of market it was decided to form a separate co operative.The meeting unanimously agreed to the concept and such was the enthusiasm prevailing at the gathering that eighteen of those present immediately applied for shares in the body yet to be formed. The new organisation was registered with the Registrar of Co operatives on 3 February 1949 as The Natal Co-operative Timber Company Limited. (Later in 1993 in keeping with popular usage, the name was altered to NCT Forestry Co-operative Limited.) Initially the secretarial and administrative functions were undertaken by the Union Co-operative, who continued to perform this service on NCT’s behalf with great efficiency until 1975.

Shares were issued at a nominal value of £1 (at the time R2.00) each, of which growers paid an issue price of one shilling (ten cents) per share. The number of shares for which growers could apply, was based on one share per acre of trees, multiplied by the total area of trees an applicant owned. Initially members held in total about 8 000 hectares (20 000 acres) of trees. Fifty years later, the members’ plantations cover a vast 200 000 hectares. NCT’s first directors were chairman JM Hershensohnn, deputy chairman RB Fyfe and GV Howard, Heine Küsel, OH Klipp, Colonel WS Slatter, J Hunt-Holly Jnr, SJ Nuss and WF Schmidt.

Mr JM Hershensohnn First Chairman of NCT 1949 to 1954 Jim Hershensohnn farmed in the Dalton district and was a very tough negotiator when it came to timber sales for the members of NCT

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One of NCT’s first Share Certificates

Share Certificate Nº 3 in favour of Edward Handley

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THE FIFTIES • in business

I nitially the new co-operative venture was expected to be non profit making, the sole aim being for the direct benefit of members. First Contract The first contract negotiated by the new organisation was to supply Masonite Limited an estimated 20 000 to 40 000 short tons of Wattle with a maximum of 60 000 tons per annum. The contract was for two years at a price of £1/4/6 (one pound, four shillings and six pence) (R2.45 at the time) per ton delivered

Estcourt! The Union Co-operative levied a fee of 6d (five cents) per ton for handling expenses and charged three per cent on net returns for administration expenses. These figures are relative to the times but nevertheless ludicrous by today’s market prices. A start had been made and NCT was in business. The Co-op was achieving its goal of selling increased volumes of timber at realistic prices. From the outset there were constant efforts to obtain realistic prices for members’ timber.

The record of the first member of the Co-operative, David James Finlayson, of Pietermaritzburg

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Enthusiastic members continued to sign up with the new co-operative. The 1950 Directors Report noted that membership had grown from 38 to 52. During the formative years of the fifties NCT grew steadily. Markets continued to expand and the demand for wood products grew. Still the constant

struggle to sell greater volumes and obtain satisfactory prices for timber continued.

Some examples of prices and volumes in this early period were: Pine logs to Masonite R3.25 per ton delivered Estcourt; and Contracted quantities of pine:

Col WS Slatter Second Chairman of NCT 1954 to 1963

5261 tons in 1950 9880 tons in 1951 7164 tons in 1952

Cut firewood sales constituted a large part of the business at R2.25 per ton FOR Senders station. Fencing droppers fetched R1.00 per 100 FOR Dalton!

Eucalyptus citriodora plantation near Kwambonambi, 1957

A fire-watch tower dating from 1953

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1956 Creosote timber bridge

1957 Band saw

1955 Advertisement for cargo space on the s.s. City of Manchester 1954 State sawmill under construction at Weza

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THE SIXTIES • Wattle-bark quotas introduced

T he introduction in 1963 of wattle bark quotas highlighted the need to utilise the timber to greater advantage. NCT rose to the challenge and exported several shipments of Wattle timber to Italy during the following two years. The price paid was R6.00 per ton FOB Durban. This did not grow into any great venture and progress during the first two decades of NCT’s

1963 Controlled fire exercise

operations was modest. Several further investigations into the export market were made but proved uneconomical to expedite. In 1961 Mr Robbie Tosen was appointed as NCT’s first full-time Field Officer. Today the description of the post is Extension Forester. A further staff posting came in 1969 when Dr N D (Doug) Crowe was appointed as Manager. In 1969 the news was out that a new paper mill was being erected in Durban. The mill would be known as Mondi Paper Company Limited. Also about this time, two pack mills had been established by NCT at Kranskop and Dalton to market mining timber. On the strength of these additional emerging markets, the Co-operative embarked on a campaign to enrol additional members. Then a much more significant development was about to take place which would have far-reaching benefits for hardwood growers.

Mr HFC Küsel Chairman 1963 - 1970

1961 Brush clearing

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THE SEVENTIES • a central timber co-operative established

I n the late sixties a rift involving timber pricing had developed in the South African Timber Growers Association between processors and private timber growers. The late Mr Craig Anderson, Chairman of SATGA, had declared that in the future, private growers would have to protect and promote their interests through their respective co-operatives. NCT decided to pursue the idea of a central co-operative and discussions with Transvaal Wattle Growers (TWK) followed. Coincidentally, about this time Natalse Landbou Koöperasie Beperk (NLK) announced that it would be forming a separate division within its ranks to service its members who grew timber in Northern Natal. After successful talks between the three interested primary co operatives, it was agreed to form a Central Timber Co-operative to cater for private growers’ needs. In the meantime, Messrs

Craig Anderson and Volly van Breda had initiated negotiations with a Japanese buyer, Sumitomo Shoji Kaisha Corporation, with the intent to ship wattle chips to Sanyo Koku Saku Pulp and Paper Corporation in Japan for paper-making. Besides these two stalwarts, both Messrs A J (Dim) Royden-Turner and A J S (John) Slatter had also been instrumental in concluding successful negotiations. The Central Timber Co-operative Limited (CTC) was registered as a co-operative in 1970 and a deal struck with Sumitomo to export Wattle chips. The new central co-operative erected a chipping plant at Cato Ridge and a shiploading facility in the Port of Durban. The new plant was capable of processing some 650 000 tons of hardwoods per annum, although initially only about 250 000 tons of Wattle was to be chipped.

Extract from NCT’s visitors’ book. The Japanese connection, started in the seventies, has gone from strength to strength

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CTC • past and present

CTC’s Richards Bay plant in 1999 – a vast chipping facility which aims to produce and export 1 million tons in 1999

CTC’s Cato Ridge mill in 1976

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Mr FO Klipp A great pragmatist who always ensured that the original values of NCT’s founders were honoured

Mr PV van Breda Chairman 1970 – 1973

Mr AJS Slatter Chairman 1976 – 1985 The supreme diplomat who was known for his deep personal involvement in the timber industry

Mr AJ Royden-Turner Chairman 1973 – 1976 Another tough negotiator, particularly when it came to chip and ship for Japanese paper makers

Volly van Breda came in with guns blazing in the negotiations with the Japanese

NCT's first elected directors to the CTC board were Messrs F O Klipp, PV van Breda and A J Royden-Turner. Mr A J S Slatter was appointed as an alternate director. TWK and NLK began railing their members’ timber on a subsidised basis into the new plant and NCT sent its members’ timber in by road from special depots in the Natal Midlands. This mode of transport was essential due to restricted facilities on the Greytown/Pietermaritzburg railway line which would

have been unlikely to cope with anticipated volumes. This then prompted NCT to acquire Mosenthals Haulage Limited to transport timber. It was to be known in general terms as NCT Haulage. Together with eight International Transtar trucks and trailers, a base and workshop was established on land adjacent to the Cato Ridge chip plant. The contracted price to haul NCT members wattle wood was formulated on a cost plus 7.5% basis. In July 1976 Laeveld Tabak Koöperasie Beperk became the fourth member of CTC.

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some modes of transport from our past ...

Overhead timber bridge: Knysna

Koffiepot

Forestry Offices Knysna

Lower station : Tokai cableway

Loading poles

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THE LATE SEVENTIES • oversupply leads to exports

In the mid to late seventies a very serious crisis arose. Growers could not dispose of all of their Pine and Eucalyptus pulpwood on the local markets. The oversupply situation was daunting. Something had to be done and the Board resolved that if the local markets could not absorb the surplus timber, NCT would have to find alternative outlets. It was then that NCT applied the old adage, when the going gets tough, the tough get going. And so...to log exports. Bugs, Spaniards and lazy stevedores In 1978 NCT contracted to ship a consignment of some 13000m 3 Eucalyptus grandis logs to Empressa Naçional de Celulosas (ENCE) in Spain. The logs had to be completely free of the little insect known as Phoracantha semi-Punctata which wriggled between the bark and the wood of the tree. The Spaniards were terrified of it. NCT field staff were despatched far and wide to ensure that all logs were free of such a horrendous pest which, if introduced to Spain, would destroy all Eucalyptus trees in that region. To say the least, those involved learnt a great deal from that venture! And the name of the infamous ship was MV Teti-N. ( See p20 ) The consignment arrived in due course off the port of Huelva, Spain, with much fanfare – but an unforeseen problem arose.

The shipment was too big and the vessel was prohibited from entering the harbour because it was likely that it might settle on the seabed at low tide. After cruising around outside the port for some days it was finally diverted to Cadiz. NCT was now beset with additional problems – lazy stevedores who worked slowly and to the letter. Needless to say demurrage charges started to come into force and eventually amounted to US$105 000. It was a good thing the exchange rate was a reasonable R0.87 to the dollar in those days! Agents and people who had professed to assist NCT suddenly became as scarce as processors voluntarily offering realistic prices for timber and, alas, NCT had to sort out the problem alone and foot the bill. But a valuable lesson had been learnt, and timber had been disposed of to the benefit of the growers. This initial shipment of Eucalyptus logs was so stressful to many that Mr Brian Knott, Extension Forester at the time, composed a bit of amusing doggerel to fit the occasion. We take the liberty of quoting it ...

The characters featured in the piece of comedy which follows are: Doug Crowe, David Earl, Derek Kinsey, Brian Knott, Steve Little, Ken McLeod, Tony Farrow, John Slatter and Walter Küsel.

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The Saga of the TETI-N by Bee Cee Kay

Our efforts and work did the Captain amaze. On a dull, dirty day, in the fog and the rain, The TETI left port, bound for Huelva in Spain. We wished her good luck, and a pleasant trip, Oh, we were proud of that log-carrying ship! Then Doug and Dave, those two again, Flew back to that lovely harbour in Spain. Armed with long tapes, and ball pointed pen, They awaited the arrival of the TETI-N. With bunting and flags, of that ever proud nation, The Mayor and crowds were to sing an ovation. Then a groan and a hush, and heart-beat cut short, The ship was too deep to enter the port! With bated breath and hearts in mouth, We looked for ports in the north and south. With everyone here in a sweat and a tizz, They diverted the ship to the port of Cadiz. So Doug and Dave, those two again, Came back from that shallow harbour in Spain. McLeod was sent over, his first name is Ken, To organise the offloading of the TETI-N. The work of offloading was begun by the Dons, But no more was done than a few hundred tons. Second day was much better, we were filled with new hope, Only to be dashed, by the death of the Pope. Three days of mourning in Spain was decreed, This was a blow to the offloading speed. Ken waited around and the harder he tried, No work is done when a Pope has died. Meetings were held by John’s gang on the Board But Rands and Dollars for demurrage just soared.

Through Doug and Dave, those two again, An order for Gum, to be shipped through to Spain. We knew that to export with dangers is fraught, But we took it on, with Huelva the port. So Derek and Brian, with the help of Steve, (The latter was forced to give up his leave) Started the search, for gum six weeks old, Sure to be free of Bark, Beetles and Mould. From the Midlands and north, from the east to the west, Our search was not long and we picked out the best. Stack the poles on your station, our growers were told, But be sure they are free of Bark, Beetles and Mould. Ken, Tony and John, amongst their various chores, Were to gather the best of the stevedores. To charter a ship, whether Chinese or Greek, With details of draught, by the end of the week. Along came agents, with tongue in the cheek, A ship they had found, the owner a Greek. When loaded with poles she’d draw twenty-three feet, So the depth at Huelva they would easily meet. The vessel was trim, from the stern to the tip, And the words TETI-N was the name of the ship. So the charters and bills and all papers were signed,

A happier group you never could find. All growers were told, with no hesitation, To load all the trucks, parked at their station, And be railed to Durban to stand at Shed N, And be loaded forthwith, on the TETI-N. And load her we did, without breaking a neck, Filled all the holds, then we started on deck. Nine thousand tons, in just seven days,

The ship was too deep to enter the port

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Phones and telexes were sent to our Ken, To do something fast with the TETI-N. More Rands, under protest, for demurrage were sent, The result to our balance, a ruddy great dent. Off rushed our Tony, to the Co-operative’s bank, To send off the cheques, that were certainly not blank. At last, with two thousand tons on the dock For Huelva she sailed, at eleven o’clock. To arrive in the bay, there was no laughter or mirth, As we found to our chagrin there wasn’t a berth. Hooray and a hip, after forty eight days, The TETI-N berthed, in one of the bays. At high tide our ship was easily floated, But at the low, into the mud was demoted. Ken learned to swear, in South African Spanish And most of the troubles, like thin air did vanish. Except for offloading, by the men from Azores, Please give us our Zulus, as stevedores. And see the poles weighed, from the TETI-N. As day followed day, they left in the morning, To face all the weighing, with hope ever dawning. As night followed night, they returned in the evening, Frustrated, exhausted and all but screaming. The factor of conversion was never suspect, For the Institute’s figures, you treat with respect. At six weeks air dry, one point six and no less. One point FOUR! Say the Dons, with little excess. One point in conversion means many a Rand, John on his way, his extract to sell, Stopped over to see if all was well. To lend a hand, to our overworked Ken,

All the frustrations having learnt to survive. With Manyana imprinted into his brain, Would he go back? NO, never again! With John away, Walter the Board did support, So they gathered together, to hear Ken’s report. Step by step, not to be repeated again, The traumatic events of the TETI in Spain. Can anything more go wrong they say If it does, we’ll have to seriously pray. Wait a moment, I said, to shouts of laughter, There’s still the old beetle, Semipunctata! Now started the hunt for who was to blame, For overloading a ship, TETI-N by name. Owner and agent, swore by their mothers, It wasn’t them, it must be some others! The TETI at last, with relief was offloaded, By men with winches and cables outmoded. She sailed at high tide, with no hope of return, What a pleasure the sight of the diminishing stern! Ken waited and telexed, then telexed and waited, But replies from Iberia with silence seemed fated. So back he flew, to that hot land of Spain, and his words faintly echoed, NO, NEVER AGAIN! John, Walter and Ken, all day sat and planned, To be paid for our gum, in our South African Rand. New shipments to Spain, of Eucalyptus and Pine, Watertight contracts, all signed and look fine. Bills and Charters, we’ve got all the dope, Let’s pray no more deaths of a Vatican Pope!!! Oh, we knew that to export with dangers was fraught, But we’ve learned about agents, their ships and a port. With a smile and a sigh, I lay down my pen And finish the saga, of the TETI-N! After a week of haggling, back Ken flew, A lot being done, but a lot more to do.

The Spanish port of Huelva

By men with winches and cables outmoded

Two or more, then out of export we land. The TETI-N, no more a ship but a curse, Continues to hit at our dwindling purse. So back came Ken, not dead but alive,

...the men from Azores

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BUT ...

N CT was now in the log export business. Over the next five years about two shipments a month on average of either Pine or Eucalyptus pulpwood logs were despatched to Europe and the Middle East. Many a hiccup arose but those responsible took such problems in their stride. Lost: one stevedore... While loading a shipment of eucalyptus logs on the MV St Nicholas in Durban harbour, the stanchions supporting the deck cargo suddenly gave way, and logs tumbled and cascaded over the side onto the wharf, and between wharf and ship. Prior to this, stevedores had been scrambling over the piles of loaded logs and immediate fears were that people may have been swept overboard. A quick roll-call established some with slight injuries – and one missing. Frantic efforts were made to clear the jammed logs and locate the missing man. Those overseeing the operation were sweating with anxiety and had visions of a mangled body appearing any second. ... and found Unbeknown to anyone the missing man had quietly left his workplace earlier to answer nature’s call and was safely ensconced in a nearby toilet. Hearing the fuss he emerged and stood to the side calmly viewing in wonder the uproar before him. He was completely unaware that they were searching for him. We leave it to the reader to imagine the reaction of the foreman!

1979 – MCV Ace Pioneer – loaded for France with 10 813 tons of pine pulpwood

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... the die had been cast

the point had been made. CTC began chipping Eucalyptus logs for Sumitomo in 1980. Such was NCT’s involvement in log export markets that it removed from the local market some 314 000 tons Eucalyptus and 130 000 tons Pine pulpwood between 1978 and 1983. 1979 Runner-up: exporter of the year NCT attained a singular achievement in 1979 when it was voted runner-up in the Exporter of the Year award. This competition was run by the SA Foreign Trade Organisation in conjunction with “The Sunday Tribune” newspaper to stimulate exports in those times of international trade sanctions. Receipt of such an accolade was highly prized by the business community in those days and NCT, as a relative newcomer in a very competitive game, was proud of the achievement. At this time there were further developments in the local market. On the home front there was expansion at the new port of Richards Bay with Mondi establishing a pulp mill and CTC relocating its chipping plant. Saiccor and NCT had finalised a favourable supply contract for hardwoods which reduced the need for constant log export shipments. This development paved the way for the emerging Black timber farmers to supply these markets. Thereafter NCT executed a few shipments each year although volumes had decreased considerably. Since the early eighties NCT has, from time to time, committed itself to ad hoc log export shipments in such diverse markets as Finland, Norway, Turkey and Morocco. This type of operation, often fraught with risk for the unwary, removed excess timber from the local scene and assisted in triggering price increases.

1978 Enter Ken McLeod Ken McLeod was appointed as the first General Manager of NCT. He arrived at a time of growing expansion and diversification bringing his expertise gained in a related industry which was to prove invaluable to NCT in that sometimes painful period. Sadly he had to retire early due to a serious motor accident after only six years’ service. During this period NCT had been dealing directly with many agents. Shipments continued on an ad hoc basis until late 1979 when a new

Ken McLeod was selected as the first General Manager of NCT, appointed in 1978

buyer appeared on the scene by the name of Marubeni Corporation from Japan. Marubeni, a direct competitor of CTC’s trading partner, Sumitomo Corporation, was interested in buying Eucalyptus pulpwood logs. Sumitomo quite naturally voiced opposition to one of the primary co-operatives of CTC dealing directly with its rival. Fair enough, declared NCT, but then Sumitomo should make every effort to purchase NCT’s surplus Gum. Regrettably a certain amount of strong feeling arose between several personalities in NCT and CTC over the issue but

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making an impression on timber over the years

Hydraulic Chainsaw

Cross-Cut Saw

Chopping pines

Bark Stripper

Rip Saw

Frame Saw

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1976

A new insect pest made its appearance in the timber growing areas of Natal and the South-Eastern Transvaal. It was identified as the pine aphid Cinara pini . Ladybird larvae and adults were used to fight the new pests.

Timber as far the eye can see

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THE EIGHTIES • membership and markets increase

Northern Natal growers join NCT I n 1981 NLK in Northern Natal had advised its members that it wished to close down its Timber Division. Growers in the region could either form their own timber co-operative or join either TWK or NCT. At a meeting held at Kambula, growers from the Vryheid and Paulpietersburg areas decided that it would be in their best interests to join NCT. In return NCT guaranteed the Northern Natal region permanent representation on the NCT Board. This is entrenched in the Co-operative’s statute of rules. NLK sold its shares in CTC to NCT which in turn increased NCT’s director representation in CTC from three to four. Although not recorded in the statute, it has been tacitly accepted that one of NCT’s directors to the CTC board will always be from Northern Natal. Today an NCT office and extension service based in Vryheid serves this thriving timber producing region. The acquisition of a large influx of established growers at this time was to NCT’s overall benefit because CTC had relocated its chip plant to Richards Bay and supplies from Northern Natal were strategically close to that mill. In the same year Saiccor had offered NCT a ten-year supply contract for hardwoods. Included in the terms of the agreement was a favourable pricing formula allied to the six monthly movement of the Consumer Price Index. The arrangement was for NCT to supply between 120 000 and 150 000 tons Eucalyptus logs per annum. Having access to additional supplies from

Northern Natal to feed the CTC chip plant meant that NCT could place more reliance on deliveries to Saiccor from traditional areas such as Southern Natal.

Haulage Division moves to Stanger NCT also began diversifying in other operations. As

mentioned earlier, the Haulage Division was running smoothly from its Cato Ridge base but, as CTC had moved its chip plant to Richards Bay, the Board realised that it would be more strategic to re-establish the haulage base nearer the chip plant. The outlay for such a move would prove to be very expensive but it was agreed that in the interests of efficiency, the operation should continue, provided road transport did not exceed rail cost. In June 1982 a suitable location was found and purchased at New Guelderland outside Stanger. Workshops, offices, rest rooms and accommodation for drivers and other employees were built on site. To accommodate senior staff, five houses were purchased at Blythedale Beach and the whole operation was moved piecemeal.To finance the move NCT made application to the Land and Agricultural Bank for a loan of R850 000. The facility was granted but NCT’s own monetary resources were sufficiently strong to allow it to fund the operation itself.

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In the life of a farmer! I t all started back in 1960 when they changed from pounds to rands, and when my overdraft doubled. I was just getting used to that when they brought in kilograms instead of pounds and my timber load dropped by half. Then they changed the rain to millimetres and we have not had an inch of rain since. So what do they do? Bring in a thing called Celsius and the temperature drops by 20 degrees. No wonder my bananas won’t grow!

Mr DF Earl – Chairman 1985 – 1994

As if that were not enough, they changed us over from acres to hectares and I end up with half the land I had. So I decided to sell. I’d just put the place on the market when they changed from miles to kilometres and I’m too far out of town for anybody to buy the place. So I planted some Pine, Wattle and Gum and today I’m a wealthy man!

Mr TS Little General Manager 1985 – 1988

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DROUGHTS AND FLOODS lead to under supply I n 1982 and 1983 South Africa, including the Natal region, suffered a very serious drought which was to have far reaching consequences for timber growers. Lack of sufficient rains affected timber yields in the medium term, which in turn reduced availability of supplies. NCT struggled to meet hardwood obligations and herculean efforts had to be made to find sufficient timber. Partly because of this natural disaster a project to be known as the CTC Afforestation Scheme was launched. The purpose was to ensure future hardwood supplies to CTC in the long-term. The Japanese buyers agreed to provide necessary finance and the scheme was divided into two parts. The first was to purchase and/or lease land for forestry development. The second part was for the primary co-ops to encourage their grower members to establish hardwoods on new areas on their farms.

The September 1987 floods caused havoc in the South African timber industry

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Depots

Loans were available to assist members on condition the harvested timber was delivered through the agency of the primary. In turn NCT would advise and monitor the silvicultural progress of the relevant plantations. CTC then acquired various properties in Zululand, Northern Natal and the South Eastern Transvaal. This does not form part of NCT’s story but it is interesting to note that the current sustained yield from these farms is in excess of 50 000 tons per annum. establishment of secure log stock holding depots in the Midlands, the forerunners being set up at Glenside, Greytown, Harden Heights and Kranskop. The strategic value of these storage points proved their worth when Natal suffered the worst floods for many decades in September 1987. Talk about sublime to ridiculous! The extent of the devastation could be gauged by the John Ross Bridge over the Tugela River being swept away and traffic into Zululand having to be diverted over the old railway bridge further up the river. Huge areas were water-logged, farm access roads impassable and it was in many cases impossible to extract timber for delivery to mills. Stockpiling of timber on these depots proved their worth when it was possible to keep the mills supplied over a difficult period. More holding depots have since been established. First NCT Depots established Another development in the eighties was the

In 1999 NCT operates 12 depots situated in convenient locations for members and markets from Paulpietersburg to Harding. The stock in 1999 on these depots consists of approx imately 85 000 tons of Wattle and Gum with an insured value of approximately R19.2 million

NCT depots are equipped with weighbridge facilities and are fully fenced and guarded

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A look back in time to a bygone

A preservation plant

Stinkwood blocks

Yellowwood – Gouna

Surveying Pappegaaisberg 1933

Timber testing machine

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era of forestry in South Africa

1943 A view of a saw in operation

1943 An engine driving a saw

1943 Trimming ends of planks before st

n Estate Sawmill

acking

1943 Stacks of timber drying at Waterto

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A third party appeared on the scene in the eighties and offered to purchase a half share of the CTC chip plant at Richards Bay. There were objections from TWK and many NCT growers who feared NCT could lose its identity in time. The offer was rejected. NCT’s strength is in the support it receives from its members and over the years there have been many threats from powerful outside bodies to strike discord amongst individual growers thereby weakening NCT’s effectiveness. It was felt that union with a competitor would eventually weaken NCT’s control and thus the private grower would be back to square one, where he had been as he was forty years earlier. The idea of a joint venture with local third parties was mooted several times over in this era but all came to nought. E V E R Y O N E W A N T

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BARKING DOGS • at Board Meetings •

Meetings of the NCT Board are not without humour and lightness at times. There was the time when Doug Crowe was earnestly holding forth on some important topic, (probably the prevailing low timber prices), and being constantly interrupted by a yapping dog in the flats next door to NCT's boardroom. Finally in exasperation he requested, ‘Mr Chairman, please send out the General Manager and have him buy the dog and have it put down!’ Incredibly, the creature ceased barking with immediate effect.

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Ghostly rattles and bangs

In the early days NCT occupied a quaint house in Pietermaritzburg. Being old, the building creaked and whispered in the winter winds with sash windows rattling vigorously on gusty nights. They still do. The total staff complement based in the building was about ten so control of security was fairly simple by today’s standards. Nevertheless, precautions were taken when staff worked alone after office hours. One cold night, a senior employee

decided to finalise a job. After ensuring all windows and external doors were closed and locked, he settled down to tackle what he had set out to do. Suddenly there was a loud bang announcing that a door had slammed. Thinking he might as well check which

Above: 346 and 350 Burger Street before the two buildings were joined in 1985 Below: NCT’s Head Office in 1999

door had caused the inconvenience, he left his office to investigate. The external doors were locked but not one internal door was closed in that building! It did not take him long to vacate the office. Staff overtime hours on dark winter nights dropped significantly for some time after that incident!

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NCT • offices

Until 1975 NCT’s office was registered at the Union Co-operative’s headquarters in Dalton. In that year NCT appointed an administration manager to take over the ever-growing workload from the long-suffering Union Co-op staff who had been undertaking NCT’s administrative function until then. So it was decided the time had come for NCT to find its own home. The following year NCT moved its headquarters to 209 Burger Street, Pietermaritzburg, but in a very short time even those premises proved too cramped. An old house at 346 Burger Street was purchased. Situated in a garden, the house needed renovations and a sum of R500 was set aside to effect this work. On 1 June 1977 the staff relocated to the present headquarters. Very soon a vegetable garden was established at the rear of the property and on late afternoons employees could be seen watering the tomatoes and feeding hundreds of pigeons which lived in the surrounding trees and gardens. Alas! Soon this tranquility was shattered when changes in top management required the budding horticulturalists to make a greater commitment to work. The birds departed and the lettuce patch became part of a new parking lot for visitors. So much for change and progress!

NCT Greytown

NCT Nelspruit

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Besides the Head Office, district offices were officially established in Greytown (facing page top) and Vryheid (above) in 1991, followed in 1992 by Richards Bay (right). The Greytown and Nelspruit offices (facing page) gained their official status in 1991 and 1994 respectively. Below is the Pietermaritzburg Head Office in 1999

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THE PEOPLE • who shaped NCT

From the start NCT has been fortunate to have been able to draw on the experience and leadership of people of exceptionally high calibre – people who not only foresaw the need for co-operation amongst their fellow growers, but decided upon what they could put into the business rather than what they could get out of it. In the beginning there were leaders such as the late Mr Heine Küsel and Col Joe Slatter who were instrumental in rallying together their fellow growers to form NCT. Their vision saw the need for collective bargaining if the private timber growing industry was to develop. Amongst prominent personalities of those early times was T F (Eric) Mackenzie who was in the forefront encouraging the growth of new paper industries in South Africa. Mention has already been made of those who were instrumental in the formation of CTC; namely Craig Anderson, Dim Royden-Turner, John Slatter and Volly van Breda. All these personalities continued to champion the cause of the private timber grower during their time. Many other prominent growers, leaders in their own communities, put in immeasurable time and effort to attend meetings and gatherings in the interests of furthering forestry development. From Northern Natal came P R (Rudolph) Nel, R M (Reg) Niebuhr and J A (Jannie) Scheepers who have and still do, travel long distances on a regular basis to attend the various meetings. S N (Stuart) McMurray from Melmoth and the late A G (Aggie) Payn from Harding, were two other long-standing directors who have served their fellow growers with distinction in Zululand and Southern Natal respectively. Closer to home were Dr N D (Doug) Crowe, W A (Walter) Küsel, F O (Friedhold) Klipp and D F (David) Earl. R P (Peter) Lorenz, and Dr C A (Carl) Seele still serve on the board and have given tirelessly of their time and efforts.

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A rare gathering of Directors

As part of NCT’s 50th birthday celebrations, NCT Directors current and past gathered in June 1999 for an historic meeting of the NCT Board. Each successive Board honours the principles and values of the Co-operative spirit which was established by the first NCT Board. Seen here, together with senior management, are: Front row, left to right: Friedhold Klipp (past Director); Walter Küsel (past Director); Peter Lorenz (Vice-Chairman); Carl Seele (Chairman); Rudolph Nel (past Director); Rob Visick (past Director); Jannie Scheepers (current Director) Back row, left to right: Stuart McMurray (current Director); Rodney Miles (current Director); Peter Keyworth (General Manager – NCT Forestry Co-operative Limited); Jack Mason (current Director); Richard Golding (Financial Manager); David Earl (current Director); Reg Niebuhr (current Director); Martin Hill (current Director); Volly Keyser (current Director); Patrick Kime (General Manager – NCT Tree Farming (Pty) Ltd); Andy Jones (Administration Manager); James van Zyl (Commercial Manager). Absent: Doug Crowe, Arthur Dougherty

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Election of Directors In South Africa, some agricultural co-operatives follow a rule that directors are to be elected from specific regions in order to ensure broad representation over the whole spectrum of that particular co-op’s area of operations. NCT, while acknowledging the fairness of such a system, has always believed in the democratic approach that directors should be elected by members irrespective of the candidate’s home district. This ensures that the best men are chosen. But when a specific area did not have representation, it used to be the custom to invite a leading timber grower from that district as an observer to board meetings. This practice has recently been discontinued. Cognisance has to be given to the many loyal members who have not only supported their own organisation but urged their fellow growers in their areas to also uphold the ideals of the co-operative spirit. They are too numerous to mention by name in this short chronicle but recognition is given because NCT is about people and their support. Contractors – an integral part of NCT The hardy band of operators known as the Contractors form an integral part of NCT. These people fulfil a vital need where members with limited resources require their trees to be harvested. The contractors perform this function and most offer a fair deal. Unfortunately there have on occasion been those who have taken advantage of landowners to the overall detriment of the group. All in all the majority carry out a necessary exercise for the benefit of all concerned. In 1989 Peter Keyworth was appointed as General Manager. Under Peter’s guidance the co-op has continued to diversify and expand various services. It was his innovation that led to the introduction of farm management schemes and ultimately a new company to be known as NCT Tree Farming (Proprietary) Limited.

Dr Carl Seele, Chairman 1994 onwards

Mr Peter Keyworth, General Manager 1989 onwards

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