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Forestry Industry

Overview

Fiji is blessed with a large indigenous or natural forest cover totaling approximately 956,860 hectare (ha). The sector contributes an average of 1.3 percent of GDP and is a ‘growth sector’ in the economy.

The sector was estimated to have grown by 5.7 percent in 2006 and by 4.5 percent in 2007. The estimate is based on the anticipated increase in production of indigenous and pine logs as well as harvesting of mahogany plantations. At present wood products ranks as Fiji’s fifth most important domestic export commodity after sugar, fish, mineral water and garments. Earnings from forestry products are greatly influenced by the price of exports and weather patterns.

Fiji has been self-sufficient in most timber products through utilization of its natural forests and plantation resources for more than ten years. Future prospect for the forest industry is bright. The outlook, however, continues to be heavily reliant on the commencement of large-scale utilization of Fiji’s mahogany plantation resource.

Resource Available

About 52 percent of Fiji’s total land area is covered by forest, of which indigenous forest accounts for 90 percent (857,530 hectares), hardwood plantations 5.5 percent (52,950 hectares) and softwood plantations 4.5 percent (46,380 ha). Indigenous forests cover an estimated 514,000 hectares, which has been consistently logged at an annual production rate between 100,000m3 to 150,000m3.

As per the national inventory conducted in 2003 by the Department of Forestry, the Fiji hardwood plantation area is around 40,960ha of production (loggable forests) with an average 3,276,800m³ of available timber. The estimated volume of
timber for commercial purposes is approximately 2,941,840m³.

The national annual natural forest log production averaged 125,300m3 per annum between 2004 and 2008. The total log production of natural and pine average around 481,270m3 per annum.

The Forestry Department of Fiji’s national target for sustainable harvest of natural forests is 110,000m3 per annum.

Trade

Export earnings from timber and other wood-based products averaged $46.3 million between 2004 and 2008. Export earnings in 2008 was $59.3 million.

Logs are mainly processed into sawn timber, veneer, plywood, block board, molding, poles and posts, and woodchips with total export volumes averaging 266,000m3 each year. Most of the wood products are sold to Australia and New Zealand, whilst wood chips are sold exclusively to Japan. The American market absorbs approximately 40 percent of all veneer products.