Exports of woodchips are on track for the second half of the year, despite subdued reports from the central bank regarding the sector. Ratu Rakuita Vakalalabure, executive chairman, announced that six vessels are lined up for upcoming woodchip exports. Global prices for pine chips experienced a decline in the latter half of last year, and this year’s prices are projected to be 30 percent lower than those at the start of the previous year.
Ratu Rakuita noted, “Since our pricing is linked to the global market, we face similar price volatility challenges as major multinationals involved in this commodity trade.” He emphasized that this is a significant challenge for smaller exporters like Tropik, which will need careful management.
This year, the company plans to export woodchips to Japan and potentially one or two other locations. The timber industry is becoming increasingly seasonal, with extended rainfall impacting operations during the first two quarters of this year. Logging activities were notably slow in the first quarter but saw improvement in the latter part of the second quarter.
Looking ahead, Ratu Rakuita mentioned that dry weather is forecasted for the second half of the year, presenting an opportunity to boost production to offset the earlier low output. He is optimistic that the favorable results seen in June will continue throughout the year.
To support the supply chain from the forest to domestic users and export markets, Fiji Pine Group is investing in infrastructure and assets. This includes expanding their fleet and barge services to meet the growing demand for raw products from maritime islands.