Woodchip exports are on track for the latter half of the year, despite cautious assessments from the central bank regarding the sector. Ratu Rakuita Vakalalabure, the executive chairman, announced that six vessels are set for the upcoming woodchip export. Last year, global commodity prices for pine chips fell during the second half, and this year’s prices are anticipated to be 30 percent lower than those at the beginning of last year.
Ratu Rakuita noted that pricing is linked to global market trends, exposing exporters to price fluctuations, a challenge that smaller companies like Tropik face similarly to larger multinational corporations in the same field. This year, exports will primarily go to Japan, with the possibility of additional destinations.
The timber industry has shown increased seasonality, with extended rainfall affecting the first two quarters of this year. Logging activities were sluggish in the initial quarter but began to show improvement during the latter months of the second quarter. The forecast for the second half predicts drier weather, presenting an opportunity to enhance production and recover from the low output earlier in the year.
Ratu Rakuita expressed confidence that the positive trends seen in June would persist throughout the year. He also mentioned that the Fiji Pine Group is investing in infrastructure to ensure a smooth supply chain from the forest to both domestic consumers and export markets. This includes expanding their fleet and barging services to meet the growing demand for raw products from maritime islands.