Woodchip exports are set to proceed as planned in the latter half of the year, despite subdued reports from the central bank regarding the sector. Ratu Rakuita Vakalalabure, executive chairman, announced that six vessels are scheduled for upcoming woodchip shipments. He noted that global prices for pine chips have decreased compared to the second half of the previous year, with current prices anticipated to be 30 percent lower than at the start of last year.
Ratu Rakuita emphasized that, since pricing is tied to global rates, they remain vulnerable to price fluctuations, similar to larger multinational corporations in the same trade. He acknowledged the challenges facing small exporters like Tropik, which will necessitate careful management.
This year, Tropik aims to export to Japan, with potential shipments to one or two additional locations. Ratu Rakuita observed that the timber industry is becoming increasingly seasonal, highlighting how extended rain patterns in the early part of the year have affected logging operations. The first quarter saw sluggish activity, improving only in the final two months of the second quarter.
Looking ahead, forecasts indicate dry weather for the latter half of the year, creating an opportunity for higher production levels to compensate for earlier deficits. Ratu Rakuita is optimistic that the positive trends observed in June will persist throughout the year.
He also mentioned that Fiji Pine Group is investing in infrastructure and resources to ensure a smooth supply chain from forests to both local consumers and export markets. Additional investments are planned to expand their fleet and enhance barge services in response to the growing demand for raw materials from maritime islands.