Woodchip exports are set to proceed as planned for the latter half of the year, despite subdued reports from the central bank regarding the sector. Ratu Rakuita Vakalalabure, the executive chairman, announced that six vessels are scheduled for the upcoming woodchip export. He noted that global prices for pine chips have been trending downward since the last half of the previous year, with expectations for prices this year to be approximately 30 percent lower than those at the start of last year.
“Since our pricing is linked to the global market, we face the same risks of price fluctuations as major multinational companies involved in this commodity,” Ratu Rakuita explained. He highlighted that such volatility poses significant challenges for smaller exporters like Tropik, which must be managed with care.
This year, the company plans to export woodchips to Japan and possibly one or two additional markets. The timber sector has become increasingly seasonal, largely due to extended rainfall during the first and second quarters of this year, resulting in sluggish logging operations initially, with improvements only noted in the latter part of the second quarter.
Looking ahead, Ratu Rakuita mentioned that forecasts predict drier weather for the second half of the year, presenting a chance to boost production levels to compensate for earlier shortfalls. He expressed optimism that the positive outcomes experienced in June would continue throughout the remainder of the year.
To enhance supply chain efficiency from forest to domestic consumers and export destinations, the Fiji Pine Group is implementing infrastructure improvements and acquiring additional assets. Further investments are being directed toward expanding the fleet, including barge services, in response to increasing dependence on raw materials from maritime islands.