Woodchip exports are on track for the latter half of the year, even as sector reports from the central bank remain subdued. Executive chairman Ratu Rakuita Vakalalabure announced that six vessels are scheduled for upcoming woodchip exports. He noted that global commodity prices for pine chips have been decreasing since the latter part of last year, with this year’s prices expected to be 30 percent lower than at the start of the previous year.
Ratu Rakuita highlighted that, similar to large multinational corporations dealing in this commodity, their pricing is tied to global rates, making them vulnerable to price volatility. He acknowledged that managing this challenge is crucial for small exporters like Tropik.
This year, they plan to export to Japan and possibly one or two additional markets. Ratu Rakuita pointed out that the timber industry is becoming increasingly seasonal, noting that extended rain patterns in the first and second quarters have impacted logging operations. There was a significant slowdown in the first quarter, with only gradual improvements observed in the last two months of the second quarter.
He expressed optimism about the forecast of drier weather for the second half of the year, which presents an opportunity to boost production in order to recover from earlier low output. Positive trends from June are expected to continue through the rest of the year.
Additionally, Ratu Rakuita mentioned that Fiji Pine Group is enhancing its infrastructure and assets to ensure a smooth supply chain from the forests to domestic users and export markets. The company is also investing in expanding its fleet, including barge services, to meet the growing demand for raw products from the maritime islands.