Woodchip exports are progressing as planned for the latter half of the year, despite subdued sector reports from the central bank. Ratu Rakuita Vakalalabure, the executive chairman, announced that six vessels are set to participate in the upcoming woodchip export operations. However, global commodity prices for pine chips have reportedly declined since the second half of last year.
It is anticipated that prices this year will be about 30 percent lower than those at the beginning of the previous year. “Our pricing is tied to the global market, making us vulnerable to price fluctuations similar to those faced by large multinational corporations,” stated Ratu Rakuita. This price volatility presents significant challenges for small exporters like Tropik, which must be managed carefully.
This year, the company plans to export woodchips to Japan, as well as potentially one or two other markets. Ratu Rakuita noted that the timber industry is becoming increasingly seasonal. The first and second quarters faced prolonged rainfall, which significantly slowed logging operations, with improvements only seen in the last two months of the second quarter.
Looking ahead, forecasts indicate drier weather for the remainder of the year, providing an opportunity to boost production levels and recover from earlier low output. “The positive results from June are expected to extend through the rest of the year,” Ratu Rakuita mentioned.
To secure efficient supply chain operations from the forest to domestic consumers and export destinations, the Fiji Pine Group is investing in necessary infrastructure and assets. This includes expanding their fleet and enhancing barging services to support growing demand for raw products from maritime islands.