Woodchip exports are on track for the latter half of the year, despite muted reports from the central bank regarding the sector. Ratu Rakuita Vakalalabure, the executive chairman, announced that six vessels are slated for the upcoming woodchip exports. He noted that global prices for pine chips have been declining, with this year’s prices expected to be 30 percent lower compared to the start of last year.
Ratu Rakuita highlighted that as their pricing aligns with global rates, they face similar price volatility risks as larger multinational corporations involved in this commodity. He pointed out the significant challenges that smaller exporters, like Tropik, need to navigate carefully.
This year, the company plans to export woodchips to Japan and potentially one or two other locations. Ratu Rakuita also mentioned that the timber industry is becoming increasingly seasonal, with extended rain periods affecting operations in the first and second quarters of the year. Logging efforts were sluggish in the first quarter but gained momentum in the last two months of the second quarter.
Looking ahead, he expressed optimism about the forecasted dry weather for the second half of the year, believing it will facilitate high production levels to make up for earlier shortfalls. He expects the positive momentum from June to persist throughout the year.
Ratu Rakuita noted that Fiji Pine Group is investing in infrastructure and resources to ensure a smooth supply chain from forest to end users and export markets. Furthermore, additional investments are being dedicated to expanding their fleet, including barge services, to meet the increasing demand for raw materials from maritime islands.