Mahogany Market Value Yet To Be Realised

The full realisation of Fiji’s mahogany sector is expected to be determined in the next two to five years, as certification and accreditation processes get underway.

This, as stakeholders gather in Suva this week to address gaps in its stride to gain forest certification, for better international market recognition.

Fiji Hardwood Corporation Limited’s acting General Manager, Semi Dranibaka, said Fiji’s mahogany sector was estimated to be valued at $213 million, according to the last Forest valuation in 2008.

The value is believed to have increased today as mahogany plantation trees near maturity, he said.

Another Forest valuation is expected to be carried out this year, Mr Dranibaka said.

However, without proper certification, the true value of mahogany exports is yet to be realised.

“The certification of forests will raise the market value of logs and its timber products to meet international markets,” Mr Dranibaka said.

“It help us access large markets that can pay the full value of mahogany.”

Fiji’s mahogany is sold as logs to local exporting companies, some of whom add value, for export.

Most of Fiji’s mahogany timber market is South America and the United States of America, where it is used for producing guitar components.

Australia and New Zealand markets however have closed off mahogany timber trade from Fiji until proper certification is realised.

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