Exports of woodchips are proceeding as planned for the latter half of the year, despite “muted” sector reports from the central bank. Executive Chairman Ratu Rakuita Vakalalabure announced that six vessels are scheduled for upcoming woodchip shipments. Global commodity prices for pine chips have been declining since the second half of last year, and this year’s prices are anticipated to be 30 percent lower than those at the start of the previous year.
Ratu Rakuita emphasized that the company is affected by price volatility tied to global markets, similar to major multinational corporations dealing in the same commodity. This poses significant challenges for smaller exporters like Tropik, which must be carefully managed.
This year, the company plans to export to Japan and potentially one or two other markets. The timber industry is becoming increasingly seasonal, influenced by extended rainy periods during the first two quarters. Logging activities were sluggish in the first quarter but saw improvement in the last two months of the second quarter.
The forecast for the second half of the year predicts drier weather, creating an opportunity for continued high production rates to offset earlier low output. Ratu Rakuita is optimistic that the positive results seen in June will carry through for the remainder of the year.
The Fiji Pine Group is implementing necessary infrastructure upgrades and ensuring a smooth supply chain from the forest to both domestic customers and export markets. Additionally, investments are being made to expand their fleet and barging services to support growing demand for raw materials from maritime islands.