Woodchip exports are on track for the second half of the year, despite subdued sector reports from the central bank. Executive Chairman Ratu Rakuita Vakalalabure announced that six vessels are set for the upcoming woodchip export. He noted that global prices for pine chips have declined, with this year’s prices projected to be 30 percent lower than those at the beginning of last year.
Ratu Rakuita stated, “As our pricing is linked to the global price, we face the same exposure to price volatility as major multinational corporations dealing in this commodity.” He highlighted that managing these challenges is crucial for small exporters like Tropik.
This year, the company plans to export to Japan and possibly one or two other markets. Ratu Rakuita remarked that the timber industry has become increasingly seasonal, especially following prolonged rainfall in the first and second quarters of this year, resulting in slow logging operations at the start of the year. Fortunately, he noted an improvement in production during the last two months of the second quarter.
The forecast for dry weather in the latter half of the year presents an opportunity for increased production and recovery from the early-year lows. Ratu Rakuita is optimistic that the positive trend seen in June will extend through the remainder of the year.
He further mentioned that Fiji Pine Group is enhancing its infrastructure and assets to ensure a smooth supply chain, from forests to domestic users and export destinations. Investments are also being made to expand their fleet, including barging services, to better accommodate the rising demand for raw products from maritime islands.