Positive sectoral performance in March
AFTER the relaxation of restrictions and reopening of international borders sectoral performance in the March quarter remained diverse but overall positive.
Sugar industry output for the 2021 season was particularly weak according to the Reserve Bank of Fiji.
In its quarterly review for March 2022 it was stated that with both cane harvesting (-18.0 per cent to 1,417,185 tonnes) and sugar production (-12.1 per cent to 133,209 tonnes) were down from the previous season.
“This was primarily due to a decline in cane supply to the Labasa Mill, as a majority of cane fields in the Northern Division were destroyed by natural disasters in early 2021,” stated the bank.
Visitor arrivals was said to strengthen on a quarterly basis as international visitor arrivals reached 48,906 in the March quarter of 2022 compared with the 24,521 visitors received in the preceding quarter and 4223 visitors in the March quarter of 2021.
“Australians had accounted for approximately 72.0 per cent of total visitor arrivals in the March quarter, followed by the US (13.5 per cent), NZ (4.8 per cent), the Pacific Islands (3.2 per cent), Continental Europe (1.1 per cent), and China (1.1 per cent).
“A more promising visitor outcome is expected in the next quarter from other source markets such as NZ who have gradually begun to ease their travel restrictions.
“Electricity generated by Energy Fiji Ltd (EFL) picked up by 10.5 per cent (to 261,645 Mwh) in the year to March, following a 13.4 per cent decline in the same period in 2021,” stated the review.
The renewable energy sources were stated to have accounted for approximately 68.1 per cent of total electricity generated.
“Likewise, electricity consumption rose cumulative to March by 7.9 per cent, mostly driven by heightened demand from all users, particularly the industrial (9.8 per cent) and domestic (9.7 per cent) users.
“Gold produced by Vatukoula Gold Mines Ltd (VGML) weakened by 42.7 per cent (to 5567 ounces) cumulative to March 2022, following a 17.2 per cent increase in the same period in 2021.
“In terms of gold export receipts, lower earnings were recorded from the export of gold (-50.9 per cent to $7.4m) in January due to lower supply while the price of the precious metal continued to remain elevated.”
RBF stated that in the March quarter, the performance of the timber industry was mixed as cumulative to March, the supply of pine wood decreased by 60.8 per cent to 52,629 tonnes.
“As a result, woodchip production by the Wairiki and Drasa mills fell by 62.7 per cent to 38,087 tonnes.
“However, sawn timber production increased by 70.1 per cent to 11,036 cubic meters in the same period, up from 6,488.3 cubic meters in the comparable period in 2021.
“Mahogany production rose as well, by 150.2 per cent to 7776.4 cubic meters supported by improved production efficiency and demand.”