Copra Prices

Higher

All Islands Products Gain in Value

AFTER a month of uncertainty re garding' the copra market, it was announced in Sydney in the first week in October that the London price had been stabilised at £l2/15/- per ton, c.i.f. London for hot-air-dried copra, and £ll 15/- per ton c.i.f. London for smoked.

These were not announced by the news papers, but were acc.pted as a basis for operations by the firms.

The price allowed for Rabaul hot-air copra, in store in Rabaul, on October 6, was £9 -/3, duty paid.

This represented a total rise of about £2 18/- Australian per ton—that is, com pared with the prices ruling when war broke out on September 3—but, as against that, allowance has to be made for considerably increased freight and in surance. The latter costs, of course, vary according to the location of the producer.

The man who is hardest hit is naturally the planter in the outports of the differ ent territories, who has to ship his copra into a central port and pay inter-island freight as well as freight, etc., between the port of shipment and Europe.

It was caluculated in Sydney, in mid- October, that the largest amount that would be charged against a planter in the New Guinea outports, over and above the costs ruling when war broke out, would be 22/- Australian per ton, and against that he would be getting a bene fit of £2 18 —or a net increase of £1 16 per ton, Australian.

Copra producers close to central ports of shipment, like Rabaul, Suva, Port Moresby, etc., who avoid the increase in inter-island freight, will receive a corres pondingly higher benefit.

It is calculated that the South Pacific territories produce about 200,000 tons of copra per annum; and, as the average increase is £2 per ton as the result of war conditions (that is. over and above the increased freight, insurance, etc.), it is apparent that the industry in the South Seas will immediately receive a benefit at the rate of £400,000 per annum —which just makes all the difference between penury and reasonable comfort.

Copra producers in the South Seas should not build their hopes too high, however. The benefit of this market de pends unon their being able to ship their copra. The British and French Govern ments, under war conditions, are not only controlling a wide variety of com modities, which include copra, but they also are severely rationing shipping— that is to say, ships are being licensed to carry certain cargoes, and those cargoes are regulated according to the Allies’ re quirements in Europe.

Copra is regarded as an important constituent of margarine which, in its turn, is an important alternative to butter. But there are other commodities which, in an emergency, can be used in stead of coconut oil; and it is pointed out that in the scale of comparative commodities importance, Britain and France regard the shipment from the South Seas of sugar, wool, wheat, butter and meat as of more importance than copra. Copra will be about fifth or sixth on the list of commodities which must be shipped from the South Seas to Europe —which simply means that, if there is plenty of shipping the copra producers of the South Seas will get the full bene fit of the market; but if shipping is not available, after the more important

materials have been provided for, they will not fare so well.

However, present indications are that there will be sufficient shipping for all purposes.

It was indicated in Sydney in mid- October that the good grades of copra are going to Britain and that smoked copra, then quoted at £ll/15/- per ton c.i.f. London, was going to France.

All Commodities Rise In Value

IT will be noted from our monthly quotations, at the end of this journal, that the value of all tropical products has risen.

The value of coffee, within a few weeks, has increased 30%. Rubber is holding remarkably well, and shows a definite inclination to increase. The cocoa market is dealt with in another article —generally, it can be said that cocoa values have increased substantially, and the out look is good. The decision of Great Britain to buy all her sugar requirements within the Empire has given a big boost to the sugar industry and that in turn will benefit Fiji. The gold position is dealt with in another article—that, also, is a commodity which has increased sharply in value.

It can be said generally, so far as all Islands producers are concerned, that— as forecast in the “P.1.M.” in September— all Pacific Islands products have increased in value, and producers should receive returns in most cases over and above the increased freights and insurance.

A half-yearly interim dividend of 7d. per share payable on October 14 was de clared by Burns Philp (South Sea) Co.