Woodchip exports are on track for the latter half of the year, despite subdued reports from the central bank about the sector. Ratu Rakuita Vakalalabure, executive chairman, announced that six vessels are scheduled for the upcoming woodchip shipment. Last year’s global prices for pine chips have been declining, and this year’s prices are anticipated to be 30 percent lower than those at the start of last year.
Ratu Rakuita noted, “As our pricing is linked to global prices, we face price volatility just like major multinational corporations in this commodity. This presents a significant challenge for small exporters such as Tropik, which will require careful management.”
This year, the company plans to export to Japan and potentially one or two other locations. He pointed out that the timber industry is becoming increasingly seasonal, citing prolonged rainfall during the first and second quarters of the year. Logging activities were sluggish in the first quarter but showed improvement in the last two months of the second quarter.
Looking ahead, Ratu Rakuita mentioned, “The weather is predicted to be dry for the second half of the year, creating opportunities to maintain high production levels and offset the early-year downturn.” He expressed optimism that the positive trends observed in June would continue throughout the remainder of the year.
Furthermore, he revealed that Fiji Pine Group is investing in infrastructure and assets to enhance the supply chain, ensuring a smoother flow from forests to domestic users and export markets. The company is also expanding its fleet, including barge services, to support the growing demand for raw products from maritime islands.