Budget shifts forestry focus to value-added growth, maritime development

The Coalition Government has signalled a shift in its forestry policy by separating the sector from fisheries in the 2026-2027 National Budget and directing investment towards maritime pine development, infrastructure and downstream timber processing.

Minister for Finance Esrom Immanuel announced a $25.7 million allocation for the Ministry of Forestry during the presentation of the 2026-2027 Appropriation Bill in Parliament last Friday.

The funding reflects a stronger emphasis on increasing the value of Fiji's forestry resources through processing and improved market access, rather than relying primarily on raw timber production.

A key Budget measure is a five-year tax holiday for investors committing at least $5 million to establish new mahogany processing facilities, aimed at encouraging local processing, creating jobs and expanding the timber industry's value chain.

The Government has also maintained support for maritime forestry, allocating $2.5 million to the Commercial Maritime Pine Subsidy Programme, $3.7 million to the Fiji Pine Trust Extension Programme and $1.5 million to the Maritime Pine Development Programme.

The programmes are designed to support maritime landowners in Kadavu, Lomaiviti and Lau through improved harvesting, reforestation, transport and logistics.

As part of the Fiji Pine Trust Extension Programme, $2 million has been earmarked for construction of the Wainiyabia Jetty in Lakeba to improve shipping access and support economic activity in the maritime region.

The Maritime Pine Development Programme also includes rehabilitation works, timber processing, capacity building and infrastructure upgrades in Kadavu, Moce, Moala, Levuka and Lakeba.

The Government will continue supporting sustainable forestry through a $500,000 allocation to the REDD+ Programme, helping position Fiji to access international climate finance while promoting responsible forest management.

The forestry allocation follows last year's combined $50 million Budget for the former Ministry of Fisheries and Forestry, which funded both sectors under a single ministry.

The separation of forestry funding in this year's Budget shows the Government's intention to give the sector a more targeted focus while supporting sustainable resource management, rural livelihoods and climate resilience.