Enter your email address
Enter your password
Register | Forgot your password?

Forestry

The strategic goal of the sector is for sustainable management and development of forest resources. It will support export earnings, investment for jobs and growth. The involvement of indigenous community in the rural areas will reduce poverty and urban migration. The economic future of Fiji's forest sector is bright. Fiji is blessed with a large indigenous or natural forest cover totaling approximately 956,860 hectare (ha).

Export earnings from forest products have been moderately pegged around one percent of GDP in the 
last three years. However, this contribution can change should the focus is to maximize harvested logs targeting veneer and value addition products. Over 50 percent of Fiji's land cover is made up of native forests. There is about another 5% to 6% land in pine and hardwood plantations.

Softwood plantations, mainly of pine (Pinus caribaea), representing 2.5 percent (46,379 hectares) of the 
land area, have been established on the leeward and grasslands areas and there is great potential for further plantation expansion. Hardwood plantations of mainly mahogany (Swietania macrophylla), representing 2.9 percent of the land area, have been established on logged over rainforests, mainly on the eastern and central parts of the larger islands.

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-sufficent in most timber products through utilisation of its natural forests and plantation resources for more than ten years. The outlook, however continues to be heavily reliant on the commencement of large-scale utilization of Fiji's mahogany plantation resource.

As regards other timber-related resources, Fiji has extensive coconut palm plantations and more than 
30 years of experience in processing and utilizing coconut palm wood from over- aged palms. Potential of waste wood left over from harvesting has also been recently recognized as source of energy through IPP, furniture and other decorative purposes.

RESOURCES AVAILABLE
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 3,276,800 cubic metres of available timber. 

The estimated volume of timber for commercial purposes is approximately 2,941,840 cubic meters. Fiji has total 
native forest cover of 899,200 ha(6%), 52,419ha hardwood plantation (FHCL), 50,000 softwood plantation and 38,742 ha mangroves.

The national annual natural forest log production averaged 125,300 cubic metres per annum between 2004 and 2008. The current trend however, is strongly moving away from the natural forest towards pine and mahogany plantations. The production average from natural forest for now is standing below the 50,000 cubic meter mark. The total log production of natural and pine average around 481,270 cubic metres per annum.

INCENTIVES
Tax Incentives
100% of the amount of investment as a deduction for investing in food processing as well as forestry. Reinvestment will also be allowed for expansion purposes. In order to qualify, the investor should utilize 50% of local produce in its production process.

Specialized machineries directly used for fisheries and forestry purposes. The importation under concession is 
subject to the condition that a letter of approval is issued by Department of Fisheries & Department of Forests in relation to goods under concession.
  • Fiscal Duty – Free
  • VAT – 15%
FOREIGN INVESTMENT REGULATIONS FOR FORESTRY SECTOR IN FIJI
Under the 2009 Foreign Investment Regulations (FIR) and Foreign Investment (Amendment) Regulation 2013 the following activities are Reserved for Fiji Citizens only.
  • Plant Nursery and Care; and
  • Handicraft.
Under the 2009 Foreign Investment Regulations (FIR) and Foreign Investment (Amendment) Regulation 2013 the following activities are Restricted as follows:

Forestry - plant management & logging.
Foreign investor engaged in plant management and logging business must have at least $500,000 in owner's contribution or paid up capital for companies in the form of cash from the operational date, to be fully brought into Fiji within the implementation period.

In addition, all other Forestry activities does not have a minimum investment requirement.