Fiji’s mahogany stock has been assessed at approximately $213 million, based on a valuation from 2017. This asset is under the management of Fiji Hardwood Corporation Ltd (FHCL), which is tasked with the sustainable management of Fiji’s mahogany plantations. According to Semi Dranibaka, FHCL’s general manager, this valuation is likely outdated, as the value of standing mahogany trees tends to increase with age—previously valued at $165 million in 2013.

To obtain a more accurate valuation, the company plans a comprehensive inventory in 2025 and 2026, followed by a new forest valuation. Dranibaka emphasized the critical need for forest certification, which Fiji currently lacks. This certification would enable access to broader markets, enhancing the economic potential of Fiji’s genuine mahogany, currently supplied mainly to America and South America. He noted that certified mahogany could command a premium price in international markets where only timber from certified sources is accepted.

Currently, the average price for mahogany stands at approximately $2,400 per cubic meter for supplies targeting South America. Brokers in that region mix certified Fiji mahogany with local stock, selling it at a higher price, underscoring the importance of gaining certification to unlock greater market opportunities.

However, Fiji’s mahogany production has seen negative trends, with a reported decline of 25.7% in November 2023. This emphasizes the need for investment in sustainable management practices to stabilize production and improve market competitiveness.

While facing such challenges, the path to obtaining forest certification presents a significant opportunity for revitalizing Fiji’s mahogany industry. This initiative could not only boost economic prospects for local landowners but also foster responsible resource management, promoting environmental stewardship. The ongoing commitment by FHCL and active engagement with stakeholders reflect a hopeful outlook for future growth in this vital industry.

In summary, increasing the value and marketability of Fiji’s mahogany hinges on obtaining certification and addressing production declines, setting the stage for a more prosperous future.