Woodchip exports are on track for the latter half of the year, despite “mute” sector reports from the central bank. Ratu Rakuita Vakalalabure, the executive chairman, announced that six vessels are set to export woodchips soon. Global prices for pine chips have been falling and are anticipated to be 30 percent lower compared to the beginning of last year.
Ratu Rakuita emphasized that their pricing, being tied to global rates, exposes them to price volatility similar to that faced by large multinational corporations. This presents significant challenges for smaller exporters like Tropik, which need to be managed carefully. This year, exports are planned for Japan, with potential shipments to one or two other countries.
The timber industry is experiencing increased seasonality, influenced by extended rainy periods during the first and second quarters. Logging activities were sluggish in the first quarter, only picking up momentum in the last two months of the second quarter. However, the forecast for dry weather in the latter half of the year could provide an opportunity to increase production and recover from earlier lows.
Ratu Rakuita believes the positive trends noted in June will extend throughout the year. The Fiji Pine Group is investing in infrastructure and assets to ensure a smooth supply chain from forests to domestic users and export markets. They are also expanding their fleet, including barging services, to meet the growing demand for raw materials from maritime islands.