Mahogany plantation steward Fiji Hardwood Corporation Ltd (FHCL) plans to invest $10million this year into sawmilling and value-adding machines as it sets its eyes on venturing from just selling logs into manufacturing high-end by-products.
This is the direction the company is taking as it places a huge focus on strengthening its production performance to meet the ever-growing demand for mahogany from high value overseas markets.
In an interview last week, FHCL chief executive officer Semi Dranibaka said the company’s primary operational goal was to double their annual log production from 40,000 cubic metres to in the next three years, part of strategic plans to increase production.
And to access higher premium markets, aside from attaining necessary forest certifications, value adding is the next big move.
He said to acquire a new sawmill would cost around $30 million; and to build one according to an investor’s capacity could range from $5m to around $20m with its own sawmill facilities.
“So for us, we should invest more. You only get a proportion of your money when you’re doing logging business, you’re selling logs. But if you go further, you double what you get out of the log,” Mr Dranibaka told this newspaper.
“If it goes on like making furniture, that’s more – so the more you value add, the more money you can get out, which means we need to reinvest more.”
Mr Dranibaka to support driving value chain efficiencies, they were adopting a holistic value-chain approach where they were not only cutting trees but a managing a premium global asset.
“We are revitalising our silviculture practices, from nursery management to plantation establishment, ensuring every hectare planted today is a high-yield asset for the future,” he said in the company’s State of Corporate Intent 2026-2028.
“Achieving and maintaining Forest Stewardship Council (FSC) certification is non-negotiable. This is our passport to premium international markets, signalling to the world that Fiji mahogany is managed with the highest environmental and social integrity.”
Mr Dranibaka said by 2027, FHCL would also take full control of its brand and would market ‘Fiji Mahogany’ directly to high-end global sectors, including luthiers, luxury furniture makers, and architectural firms – capturing the margins currently lost to middlemen.
FHCL manages a total plantation estate of 75,223 hectares, consisting of 41,325 hectares of mahogany (Sweitenia macrophylla – also known as big leaf mahogany); 10,850 hectares of mixed hardwoods; and the balance of 23,048 hectares are unplanted, which includes forest conservation areas.
