Woodchip exports are set to proceed as planned for the latter half of the year, despite muted sectoral reports from the central bank. Ratu Rakuita Vakalalabure, the executive chairman, announced that six vessels are prepared for the upcoming woodchip exports, even as global pine chip prices have dropped compared to last year.
He noted that prices in the current year are projected to be 30 percent lower than those at the start of last year. As the pricing is aligned with the global market, local exporters like Tropik face challenges associated with price volatility, similar to larger multinational companies in the same sector.
This year, exports are expected to target Japan, with the possibility of including one or two additional markets. Ratu Rakuita emphasized that the timber industry has become more seasonal, citing prolonged rainfall during the first half of the year which impacted logging operations. The pace of logging was sluggish in the initial quarter but showed improvement in the last two months of the second quarter.
With forecasts indicating dry weather for the latter half of the year, there is optimism for increased production to make up for earlier deficits. Ratu Rakuita expressed confidence that the positive trends observed in June will carry on throughout the year.
In a bid to enhance operations, the Fiji Pine Group is implementing infrastructure improvements and investing in assets to ensure a seamless supply chain from forests to both domestic users and export markets. Plans are also underway to expand the fleet and improve barging services, reflecting a growing dependence on raw materials sourced from maritime islands.