Woodchip exports are on track for the latter half of the year, despite subdued reports from the central bank regarding the sector. Ratu Rakuita Vakalalabure, the executive chairman, announced that six vessels are lined up for the forthcoming woodchip shipment. He noted that global prices for pine chips have seen a downward trend since the latter half of last year, with projections indicating that this year’s prices could be 30% lower compared to the beginning of last year.
Ratu Rakuita emphasized that, as their pricing is linked to global rates, they face similar price volatility challenges as major multinational companies in the commodity market. He acknowledged that this presents significant challenges for smaller exporters like Tropik, which will require careful management.
This year, exports are planned to Japan, with the potential for one or two additional markets. Ratu Rakuita pointed out that the timber industry is becoming increasingly seasonal, noting the impact of prolonged rainfall during the first and second quarters of the year. Logging activities were sluggish in the first quarter, only gaining momentum in the last two months of the second quarter.
He also mentioned that the weather is anticipated to be dry in the latter half of the year, creating opportunities for increased production to compensate for earlier low output. The positive trends observed in June are expected to persist throughout the year.
Furthermore, Ratu Rakuita highlighted that Fiji Pine Group is investing in infrastructure and assets aimed at ensuring a seamless supply chain from the forest to domestic users and export destinations. This includes expanding their fleet and enhancing barging services to meet the growing demand for raw materials from maritime islands.