Fiji’s mahogany resource is valued at approximately $213 million, according to a 2017 assessment, which has been overseen by the Fiji Hardwood Corporation Ltd (FHCL). Semi Dranibaka, the general manager of FHCL, stated that this valuation is likely outdated, as the value of standing mahogany trees tends to increase over time. Notably, the previous assessment conducted in 2013 valued the resource at around $165 million, demonstrating a significant appreciation of value.
To acquire a more accurate valuation, FHCL plans to conduct a comprehensive inventory exercise in 2025 and 2026. Dranibaka emphasized the importance of obtaining forest certification, which Fiji currently lacks. Without this certification, access to larger markets is significantly restricted. At present, Fiji primarily exports to markets in America and South America, whereas certified mahogany would allow for broader market access and better pricing opportunities.
Dranibaka pointed out that South American brokers mix certified Fiji mahogany with local supplies to sell at premium prices, illustrating the potential financial benefits of achieving certification. The average selling price for mahogany currently rests at about $2,400 per cubic meter for supplies destined for South America. He noted that the value of mahogany would increase even more once harvested and processed, meaning a substantial opportunity lies in certification for unlocking new markets.
The mahogany production in Fiji has been on a declining trajectory, characterized by a 25.7% drop reported in November 2023, as per the Reserve Bank of Fiji data. This trend underlines the urgent need to reinvigorate the industry through sustainable practices and broader market engagement.
In conclusion, while challenges persist in the mahogany sector, including production declines and market constraints, the roadmap towards forest certification holds promise for revitalizing Fiji’s mahogany industry. By focusing on sustainable practices and resolving issues related to certification, there is an optimistic outlook for future growth, potentially enhancing economic opportunities for landowners and contributing to responsible environmental stewardship in the region.
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