Woodchip exports are on track for the latter half of the year, despite subdued reports from the central bank regarding the industry. Executive chairman Ratu Rakuita Vakalalabure announced that six vessels are planned for the upcoming woodchip exports. In addition, global commodity prices for pine chips are expected to fall by 30 percent compared to prices at the beginning of last year.
Ratu Rakuita noted, “As our pricing is tied to global prices, we are just as susceptible to price volatility as major multinational corporations trading in this commodity.” He highlighted that small exporters like Tropik face significant challenges that need careful management.
This year, exports will primarily target Japan, with potential shipments to one or two other locations. The timber sector is becoming increasingly seasonal, influenced by extended rainy periods in the first and second quarters, which impacted logging operations. Ratu Rakuita reported that operations were sluggish in the first quarter but saw improvement in the last two months of the second quarter.
Looking ahead, he mentioned that the weather forecast for the second half of the year is dry, presenting an opportunity for heightened production to recover from earlier lows. He is optimistic that the positive trends seen in June will carry on throughout the year.
Ratu Rakuita added that the Fiji Pine Group is implementing infrastructure improvements to ensure a smooth supply chain from forests to domestic users and export destinations. Further investments are being made to expand the fleet, including barge services, to support the growing demand for raw products from maritime islands.