High Timber Transport Costs: A Struggle for Labasa Sawmillers

Sawmillers in Labasa are expressing concerns over the financial implications of high timber transport costs, which they believe primarily benefit trucking and shipping companies rather than local businesses. Businessman Mukdar Ali highlighted that approximately 80% of the mahogany harvested in Labasa is shipped to Suva, resulting in minimal benefits for local sawmillers.

Mr. Ali pointed out that the Fiji Hardwood Corporation is currently paying $70 per cubic meter for transportation to Suva. He indicated that such high costs hinder the ability of local sawmillers to compete and thrive. “For almost two decades, we’ve been advocating for better prices,” he stated, emphasizing the unfair treatment faced by sawmillers in the northern region.

During a community discussion, Mr. Ali urged for a more supportive system that would enable small businesses on Vanua Levu to access better pricing, thereby enhancing their operations. He suggested that if transportation costs were reduced, more sawmillers could benefit from the timber industry, making better use of their plantations.

Responding to these concerns, Deputy Prime Minister Manoa Kamikamica pledged to address the issue with the relevant ministry and stakeholders, indicating that the government is aware of the challenges faced by sawmillers and is willing to explore solutions.

This situation resonates with broader discussions in Fiji’s timber sector about sustainable practices and fair compensation for landowners involved in mahogany production. As seen in other reports from the region, such as Northern Commissioner Uraia Rainima’s assertions that logging all mahogany in Vanua Levu could potentially generate significant revenue, it is clear that optimizing the timber supply chain could elevate local economies.

There is a glimmer of hope that increased awareness and dialogue between sawmillers, government officials, and stakeholders may lead to a more equitable system that promotes economic benefits for local operators while ensuring the sustainability of Fiji’s valuable timber resources.