SCARCE SUPPLY FORCES CLOSURE OF LOGGING OPERATION

Scarcity of log supplies in the Ra region forced the Future Forest Fiji (FFF) to temporarily suspend its saw milling operations in October last year.

According to the company, the suspension had a negative impact on their cash flows and the company’s ability to honour its loan repayment to Fiji Development Bank (FDB).

The company had no alternative but to seek moratorium on its loan repayment to FDB and this was approved by the bank and the company was allowed three months moratorium — January to March, 2015.

Last month, it said, landowners once again started logging operations in the region and this operation had provided the company with an opportunity to start milling timber again.

“The saw milling operations has the potential to generate sufficient operating cash flow surplus to allow the company to meet its financial obligations to its creditors, suppliers and employees,” the company said.

It said total sales revenue for the company increased by $279,000 over the corresponding period last year.

“Teak seedlings sales to the European Union funded reforestation project amounting to $174,000 and sales contribution of $138,000 from the saw milling operations contributed to the overall growth sales revenues.”

It said the increase in sales revenue together with reduction in overall costs contributed to the substantial reduction in the net losses for the company.

Source: http://www.fijitimes.com/story.aspx?id=304152