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 shipments. However, global prices for pine chips are on a downward trend, with predictions indicating they could be 30 percent lower compared to prices at the start of last year.
Ratu Rakuita highlighted the challenges of price volatility, stating, “Since our pricing is linked to global rates, we face similar fluctuations as major multinational firms involved in this market.” He emphasized that this presents significant hurdles for smaller exporters like Tropik, which need to be managed carefully.
This year, exports will target Japan, with the possibility of one or two additional markets. He noted that the timber sector is becoming more seasonal, impacted by extended rainfall during the first and second quarters. Logging operations experienced delays, only improving in the latter two months of the second quarter.
Looking ahead, Ratu Rakuita shared that the weather is expected to be dry for the second half of the year, providing an opportunity for increased production to recover from earlier low output. He remains optimistic that the positive momentum observed in June will persist throughout the year.
Fiji Pine Group is actively developing infrastructure and resources to ensure an efficient supply chain from the forest to domestic users and export markets. Ratu Rakuita also mentioned that additional investments are being made to expand their fleet, particularly in barge services, in response to the growing demand for raw products from maritime islands.