Exports of woodchips are on track for the latter half of the year, despite subdued sectoral reports from the central bank. Ratu Rakuita Vakalalabure, the executive chairman, indicated that six vessels are scheduled for the forthcoming woodchip export. Global commodity prices for pine chips experienced a decrease in the latter half of last year, and this year’s prices are anticipated to be 30 percent lower than those at the beginning of last year.
Ratu Rakuita noted, “Our pricing is linked to the global price, making us vulnerable to price volatility, similar to major multinational corporations dealing in this commodity.” He emphasized that this presents significant challenges for smaller exporters like Tropik, which require careful management.
This year, the company plans to export to Japan, along with possibly one or two additional destinations. Ratu Rakuita pointed out that the timber industry has become more seasonal, particularly due to extended rain periods in the first and second quarters this year. He acknowledged that logging operations were sluggish in the first quarter but saw improvement during the last two months of the second quarter.
“The forecast for dry weather in the second half of the year presents an opportunity for increased production to make up for the earlier low output,” he stated. Positive results from June are expected to persist throughout the year.
Ratu Rakuita also mentioned that Fiji Pine Group is investing in infrastructure and resources to ensure a smooth supply chain from the forest to domestic consumers and export markets. Moreover, the company is expanding its fleet to include barging services to meet the growing demand for raw materials from maritime islands.