Woodchip exports are on track for the latter half of the year, despite “muted” reports from the central bank regarding the sector.
Ratu Rakuita Vakalalabure, the executive chairman, announced that six vessels are scheduled for the upcoming woodchip export. Global prices for pine chips have seen a decline compared to the second half of last year, with this year’s prices anticipated to be around 30 percent lower than those at the start of last year.
Ratu Rakuita pointed out the vulnerability small exporters, like Tropik, face due to price volatility linked to the global market, similar to that experienced by larger multinational firms dealing in the same commodity.
This year, the company plans to export to Japan and potentially one or two additional locations. Ratu Rakuita noted that the timber industry is becoming increasingly seasonal, citing prolonged rainfall during the first and second quarters of this year which hampered logging operations, although conditions have recently improved.
Looking ahead, he expressed optimism as weather forecasts indicate dry conditions for the second half of the year, which should facilitate higher production levels to compensate for earlier low output.
Ratu Rakuita conveyed confidence that the promising results experienced in June will persist throughout the rest of the year. Additionally, Fiji Pine Group is investing in infrastructure to enhance supply chain efficiency from forests to domestic consumers and export markets, along with expanding their fleet to bolster operations, especially for raw products sourced from maritime islands.