Copra Slump

F.M.S. Committee to Study Malayan Position

IT may interest coconut planters in the Australian section of the South Seas to know that the Editor of the “Pacific Islands Monthly,” after consultations with various Sydney merchants who handle copra, wrote formally to the Common wealth Government urging that, in view of the latter’s substantial interests in coco nut plantations in Papua and New Guinea, something should be done in the direction of clarifying the outlook of the industry.

It was urged upon the responsible Minister that the copra industry at the present time is being affected by the fol lowing definite factors: Dislocation of the world’s markets by the general depression; Overproduction; The employment of new scientific pro cesses whereby other oils are purified and deordorized so that they may be used as substitutes for coconut oil; The domination of the European mar ket by the Unilever Combine, which is now so powerful that it can virtually dictate its own price to growers and shippers; The decision of the United States Government to impose a processing tax of from 3 to 5 cents per pound on all coconut oil used in the United States (thus tending to throw a large propor tion of the Pacific copra which usually is consumed in U.S.A., on to the Euro pean market).

A certain amount of data was sent to the Commonwealth Government in support of our suggestion that an expert committee be appointed to examine the whole position of the South Seas copra industry. It was pointed out that, in view of the world-wide character of the factors affecting the industry, it was desirable to secure co operation with other copra producing countries in consideration of the position, and in taking any remedial measures that might be necessary.

We have received from the Federal Department concerned a formal intima tion that the whole position is being offi cially examined.

In the meantime it is interesting to note that other British Governments have taken action along the lines which have been suggested to the Australian Gov ernment.

F.M.S. Decision

The Agricultural Advisory Committee of the Department of Agriculture, Straits Settlements and Federated Malay States, which met at Kuala Lumpur on March 14, resolved: “The Advisory Committee of the Depart ment of Agriculture desires to draw the attention of the various Malayan Govern ments to the present precarious position of the coconut industry and that of other oil crops in this country.

“It considers that the outlook for these industries is extremely grave and it sug gests that, especially in view of the large areas cultivated under these crops by small-holders, the matter must be one of serious concern to the Government.

“The Committee suggests for the con sideration of the Malayan Governments that a useful purpose would be served if His Excellency would appoint a Commis sion to make full enquiry into the circum

stances of the coconut and other vegetable oil producing industries in Malaya with a view to reporting thereon to the Malayan Governments.

The Freight Burden

“The Committee desires to add that it has had represented to it that, apart from the general disabilities under which these industries are labouring owing to the world economic situation, the copra indus try is in particular suffering from un favourable discrimination by shipping com panies in the matter of freight.

“It suggests that, in the interests of the industry in general and of small-holders in particular, the position in this respect may be such as to call for special action if this is feasible.”

Inquiry Authorised

Shortly afterwards, according to the Malayan Agricultural Journal of May, 1934, the High Commissioner for the Federated Malay States appointed a com mittee representing the Department of Agriculture, the State of Perak, the Director of Co-operation of the various States, the State of Johore, and various rubber estates, “to investigate and report on the present economic condition of the coconut and other vegetable oil producing industries in Malaya, and to make recom mendations.”