FIJI’S mahogany stock has been valued $213 million based on a 2017 assessment.
This is mahogany asset under the management of Fiji Hardwood Corporation Ltd (FHCL), a State-owned enterprise responsible for the profitable and sustainable management of Fiji’s mahogany plantations.
FHCL general manager Semi Dranibaka acknowledged that the valuation was outdated and likely to have increased over the past seven years.
“The last valuation was done in 2017, and the standing mahogany tree value was $213 million. In 2013, it was valued at $165 million. The longer the trees grow, the higher the value,” Mr Dranibaka said.
The company would conduct its full inventory exercise in 2025 and 2026 to get an idea of the existing mahogany stock after which a forest valuation will be done, he said.
Mr Dranibaka stressed the importance of forest certification which Fiji lacks, noting that without it, access to major markets remains limited.
“Currently, we supply only to America and South America.
“Certified mahogany can reach broader markets, potentially increasing profits.
“South America mixes certified Fiji mahogany with their own and sells at a premium,” he said.
“That is standing tree alone. When it is harvested, the value increases if you sell it as a log, processing, value adding.
“Once it is certified, then we can have all the markets opened.
“As of now, we only supply to America and South America and we are one of the few countries in the world to have genuine mahoganies.
“We have a potential market, but we can’t sell because we aren’t certified, and the current market we have access to has no restrictions.
“When we are selling, our average price is around $2,400 per cubic meter; that’s designated for South America.
“We supply genuine mahogany to South America, and since they are certified, when they receive the supply from Fiji, they mix it with their mahogany and sell them to bigger markets for an even bigger price.
“That’s the potential market and income we can tap into with the attainment of forest certification.”
Fiji’s mahogany production has been on a downward trend, declining by 25.7 per cent in November 2023, eight per cent in August last year and 13 per cent last November, according to Reserve Bank of Fiji data.
NOTE: This article was first published in the print edition of the Fiji Times dated January 04, 2025.
