Woodchip exports are on track for the latter half of the year, despite reports from the central bank indicating a “mute” performance in the sector. Ratu Rakuita Vakalalabure, the executive chairman, announced that six vessels are slated for the forthcoming woodchip exports. Global commodity prices for pine chips have declined for the second half of the previous year, with this year’s prices projected to be 30 percent lower than those at the start of last year.
Ratu Rakuita pointed out that pricing is linked to global market rates, making them vulnerable to price fluctuations similar to those faced by large multinational companies involved in this trade. He noted that this volatility poses significant challenges for smaller exporters like Tropik, which requires careful management.
This year, exports will be directed towards Japan, along with the possibility of one or two additional destinations. The timber industry has shown a trend toward increased seasonality, largely due to extended rainfall during the first and second quarters this year. Logging activities were considerably slow in the first quarter but began to improve during the final months of the second quarter.
Looking ahead, Ratu Rakuita mentioned that the weather is expected to be dry for the remainder of the year, presenting opportunities to boost production and recover from earlier low output. He expressed optimism that the positive results observed in June will continue throughout the year.
The Fiji Pine Group is investing in infrastructure and assets to ensure a seamless supply chain from the forests to domestic users and export markets. Additionally, efforts are being made to expand their fleet, including barging services, to meet the growing demand for raw materials from maritime islands.