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 slated for the upcoming woodchip shipments. Last year’s global commodity prices for pine chips have been on the decline, with this year’s prices anticipated to be 30 percent lower than at the start of the previous year.
Ratu Rakuita noted that the company’s pricing is linked to global market rates, making them vulnerable to price fluctuations similar to major multinational corporations in the industry. He emphasized that managing these challenges is crucial for small exporters like Tropik.
This year, exports are planned for Japan, along with the possibility of one or two additional destinations. The timber industry is increasingly becoming seasonal, influenced by extended periods of rainfall during the first two quarters of this year, which resulted in sluggish logging operations. Improvements were only seen in the last two months of the second quarter.
Looking ahead, the weather is expected to be dry in the second half of the year, presenting an opportunity to boost production and recover from the earlier slump. Ratu Rakuita is optimistic that the positive trends seen in June will continue.
The Fiji Pine Group is investing in infrastructure and resources to ensure a seamless supply chain from forests to domestic users and export markets. They are also expanding their fleet, including enhancing barging services, to meet the growing demand for raw products from the maritime islands.