Exports of woodchips are progressing as planned for the latter half of the year, despite “muted” sector reports from the central bank. Ratu Rakuita Vakalalabure, the executive chairman, announced that six vessels are lined up for the upcoming woodchip exports. Last year’s global commodity prices for pine chips saw a decrease in the second half, and this year’s prices are anticipated to be 30 percent lower than those at the start of the previous year.
“As our pricing is linked to the global market, we are just as susceptible to price fluctuations as large multinational companies dealing in this commodity,” stated Ratu Rakuita. He highlighted that this volatility poses a significant challenge for smaller exporters like Tropik, which requires careful management.
This year, exports will target Japan along with possibly one or two other markets. Ratu Rakuita noted that the timber industry is experiencing more seasonal variations, particularly due to extended rainy periods in the first and second quarters of the year. Logging activities had been sluggish during the first quarter, only picking up in the last two months of the second quarter.
“The forecast indicates dry weather for the latter half of the year, providing an opportunity to sustain high production levels to compensate for the earlier low output,” he said, expressing optimism that the positive momentum seen in June would carry through the remainder of the year.
Ratu Rakuita also mentioned that the Fiji Pine Group is implementing infrastructure upgrades and appropriate assets to ensure a smooth supply chain from the forest to domestic users and export markets. Furthermore, investments are being made to expand the fleet, including barging services, to meet the increasing demand for raw materials from the maritime islands.