Woodchip exports are on track for the latter half of the year, despite subdued reports from the central bank regarding the sector. Ratu Rakuita Vakalalabure, the executive chairman, announced that six vessels are set for the upcoming woodchip shipments. Last year’s global commodity prices for pine chips fell significantly, and this year’s prices are anticipated to be about 30 percent lower than at the beginning of the previous year.
Ratu Rakuita noted that the company’s pricing is linked to global prices, making it susceptible to price fluctuations, similar to large multinational firms operating in this sector. He emphasized the challenges faced by smaller exporters like Tropik, which require careful management.
This year, the company plans to export to Japan and possibly one or two additional destinations. Ratu Rakuita pointed out a trend toward greater seasonality in the timber industry, referencing the prolonged rainy periods experienced in the first half of the year. Logging activities were notably slow in the first quarter, with improvements only observed in the last two months of the second quarter.
Looking ahead, Ratu Rakuita expressed optimism as weather forecasts predict dry conditions for the latter half of the year, offering the potential for increased production to offset earlier low outputs. He anticipates that the positive results from June will carry on throughout the year.
To enhance operations, Fiji Pine Group is investing in infrastructure and assets aimed at ensuring an efficient supply chain from forest to domestic consumers and export markets. The company is also expanding its fleet, including barge services, to support the growing demand for raw materials from maritime islands.