Woodchip exports are on track for the latter half of the year, despite muted reports from the central bank regarding the sector. Ratu Rakuita Vakalalabure, the executive chairman, announced that six vessels are slated for the upcoming woodchip exports. The global prices for pine chips have been declining since the second half of last year, and this year’s prices are projected to be about 30 percent lower than those at the beginning of last year.
Ratu Rakuita stated, “Our pricing is linked to the global market, exposing us to price fluctuations similar to those faced by major multinational trading companies.” He acknowledged that managing such volatility presents significant challenges for smaller exporters like Tropik.
This year, the company plans to export woodchips to Japan and potentially one or two other locations. Ratu Rakuita noted that the timber industry is experiencing increased seasonality, as prolonged rain patterns affected the first and second quarters this year. Logging operations were sluggish in the first quarter, with improvements only seen in the last two months of the second quarter.
“The forecast for dry weather in the latter half of the year presents an opportunity for increased production to make up for the earlier low output,” he said, adding that positive outcomes in June are expected to carry through the remainder of the year.
Furthermore, he revealed that Fiji Pine Group is enhancing its infrastructure and resources to ensure a smooth supply chain from forest to domestic and export markets. Additional investments are being made to expand the fleet and barging services, which will help accommodate a growing dependence on raw materials from maritime islands.