Woodchip exports are on track for the latter half of the year, despite subdued reports from the central bank regarding the sector. Executive chairman Ratu Rakuita Vakalalabure announced that six vessels are scheduled for the upcoming woodchip export. Global prices for pine chips have been declining since the second half of last year, with forecasts indicating prices this year may be 30 percent lower than those at the start of last year.
Ratu Rakuita emphasized that as their pricing is linked to global market trends, they face similar price volatility challenges as major multinational corporations in the trade. Small exporters like Tropik are particularly vulnerable to this situation, necessitating careful management.
This year, exports are expected to be directed towards Japan, with one or two additional potential markets. The timber industry is becoming increasingly seasonal, with prolonged rainfall hampering operations during the first and second quarters of this year. According to Ratu Rakuita, logging activities were sluggish at the year’s start but improved significantly in the last two months of the second quarter.
Looking ahead, the weather forecast suggests a dry second half of the year, providing opportunities to boost production levels and recover from earlier low outputs. Ratu Rakuita believes that the positive trends observed in June will persist throughout the remainder of the year.
The Fiji Pine Group is making strategic investments to enhance infrastructure and ensure an efficient supply chain from forests to domestic users and export destinations. These developments include expanding their fleet and barge services to better meet the rising demand for raw products from the maritime islands.