Exports of woodchips 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 ships are slated for the next round of woodchip exports. He noted that global prices for pine chips have experienced a downturn, with expectations that 2023 prices will be about 30 percent lower than those at the start of 2022.
“Our pricing aligns with global market trends, making us vulnerable to price volatility just like major multinational corporations involved in this commodity,” Vakalalabure remarked. He emphasized that this represents a significant challenge for smaller exporters such as Tropik, which will require careful management.
This year, Tropik plans to export woodchips primarily to Japan, with the potential for one or two additional markets. Vakalalabure commented on the timber industry’s increasing seasonality, attributing challenges faced in logging operations to extended periods of rainfall in the first half of the year. Logging activities were considerably sluggish in the first quarter but saw improvement in the final two months of the second quarter.
Looking ahead, forecasts indicate drier conditions for the latter part of the year, presenting an opportunity for enhanced production to make up for earlier deficits. Vakalalabure expressed optimism that the positive trends observed in June would persist throughout the remainder of the year.
To support this goal, the Fiji Pine Group is implementing new infrastructure and investing in assets to ensure a smooth supply chain from forests to domestic users and export markets. They plan to increase their fleet, including barge services, to better meet the growing demand for raw products from maritime islands.