Woodchip Exports on Track for Second Half of the Year

Exports of woodchips are on schedule for the second half of the year, amid “mute” sectorial reports from the central bank.

Executive chairman Ratu Rakuita Vakalalabure said six vessels were scheduled for the upcoming export of woodchips. Global commodity prices for pine chips were on the decline for the second half of last year.

And prices this year were expected to be 30 per cent less than prices at the beginning of last year.

“As our pricing is tagged to the global price, we are as exposed to price volatility, the same as major multinational corporations trading in this commodity,” Ratu Rakuita said.

“This is one of the huge challenges that small exporters like Tropik are exposed are to, and will need to be carefully managed.

“This year, we will export to Japan, and possibly one or two other destinations.”

The timber industry was becoming more seasonal, with prolonged rain bands over the first and second quarter, as it had been this year, Ratu Rakuita said.

Logging operations were very slow in the first quarter and only improved in the last two months of the second quarter, he said.

“The weather is forecast to be dry for the second half of the year, so there is opportunity to retain high production to recover from the low production at the beginning of the year,” Ratu Rakuita said.

The positive results in June will continue for the rest of the year.

“Fiji Pine Group is putting in place infrastructure and the right asset to ensure our supply chain flows properly from the forest all the way to our domestic end users, and export destination,” Ratu Rakuita said.

“Additional investment is being made in expanding our fleet, including barging services, to accommodate increasing reliance on raw products from the maritime islands.”

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