Woodchip exports are progressing as planned for the latter half of the year, despite subdued sector reports from the central bank. Ratu Rakuita Vakalalabure, the executive chairman, announced that six vessels are set for the upcoming woodchip export. Global commodity prices for pine chips have been declining since the second half of last year, and this year’s prices are anticipated to be 30 percent lower compared to the beginning of last year.
Ratu Rakuita noted, “As our pricing is linked to global prices, we face the same price volatility challenges as major multinational corporations in this sector.” He highlighted that this volatility is a significant obstacle for small exporters like Tropik, which needs careful management.
The company has plans to export woodchips to Japan, with potential shipments to one or two additional locations. Ratu Rakuita explained that the timber industry is becoming more seasonal, noting that prolonged rainy conditions during the first and second quarters impacted operations. Logging activities were slow in the first quarter but saw improvement in the last two months of the second quarter.
Looking ahead, he stated, “The weather is forecast to be dry for the second half of the year, which presents an opportunity for increased production to compensate for earlier shortfalls.” He expressed optimism that the positive performance seen in June would extend throughout the remainder of the year.
Ratu Rakuita also mentioned that Fiji Pine Group is enhancing its infrastructure and assets to ensure a seamless supply chain from the forests to domestic users and export markets. There are plans for further investment to expand their fleet, including barging services, to better support the increasing demand for raw materials from maritime islands.