Business

Export winners expand into China market

By ELLEN STOLZ Winners of the Large Exporter of the Year Award at the 2011 Exporter of the Year Awards, Tropik Woods Limited, has grown tremendously since then. Tropik Woods
01 Oct 2012 14:43

By ELLEN STOLZ

Winners of the Large Exporter of the Year Award at the 2011 Exporter of the Year Awards, Tropik Woods Limited, has grown tremendously since then.
Tropik Woods Limited chief executive, Faiz Khan, said: “The 2011 awards is a year back and the market situation has changed in that period.
“Global wood chip demand has been volatile since the GFC (global financial crisis) in 2009. To cushion the effect of the volatility we have now established a market for wood chip into China.”
The 2012 Vodafone Westapc Prime Minister’s Exporter of the Year Awards will be held at the InterContinental Fiji Golf Resort and Spa on Novermber 17.
Mr Khan said the first wood chip vessel from China arrived into Fiji last week at the Lautoka wharf.
“The China market is expected to supplement our existing Japanese market. We are building a new relationship with China. We are also making sure that our old relationship with Japan is strengthened without being compromised.”
Mr Khan said the company would not be entering this year’s exporter awards. But it is concentrating on expanding into China and has its eyes on the 2013 awards.
He also said it was vital that the pine industry in Fiji explore other markets which ensure that we are not too dependent on one market.
“Having two export markets for our wood chip spreads our risks and augers well for the long term future of the pine industry that derives valuable foreign reserves for the economy.
“It also provides healthy competition between markets,” he said.
However, like any other business there are various obstacles that come in the way of success and Mr Khan highlighted a few of these to Sun Business.
“Entering a new market has its challenges. For example, the logistics, how wood chip is offloaded at the wharf, stored for months and taken to factories is different in China compared to Japan.
“Logistics in China is labour intensive whereas Japan is technology driven.
“That affects how we do business with these trading partners,” he said.




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