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Fiji’s forestry industry has been forecasted to pick up export by 2010, says the Reserve Bank’s Chief Manager Economics Jitendra Singh.
Speaking at the first meeting of the National Forestry Council last week, Singh said forestry exports had fallen by 26 percent in the first 4 months of the year.
It was also lower than the comparable period in 2007.
“What has happened is that global economic recession has affected demand from economies such as Japan, United States and Australia who are the traditional buyers of timber from Fiji. Pine and mahogany make most of the forestry exports.
“These countries are spending less on these products, therefore it is affecting Fiji’s exports.”
According to the IMF, the global economy will contract by 1.4 percent this year however there will be a growth of 2.5 percent in 2010.
Total forestry exports is $59 million however, Singh said the figure is very minute considering that total exports from Fiji stands at $1.2 billion.
“The potential for forestry to become a bigger exporter is there however relevant authorities have not taken much advantage of the perfect export conditions that were provided to Fiji several years ago.”
“The internal market within Fiji has also been weakened with the construction industry being very slow.
“However, businesses and people should realise that it is better to scrape through in the hard times with lesser profit or get nothing at all,” Singh said.
Fiji Inland Revenue CEO Jitoko Tikolevu informed the council on the tax incentives offered by the government to people interested in forestry especially in Vanua Levu.
He said Fiji should seriously look into diversifying the forestry industry instead of just importing treated logs.
Forestry permanent secretary Viliame Naupoto told council members comprising sawmillers, Roko Tuis’ and government agencies that they needed to unite and become a think tank so the industry can reap maximum benefits.
