Copra Producers Are “Blind”

Need for International Organisation to Indicate Price Trends and Future of Industry

IMiE copra industry is “running blind”.

Most of the world’s other inter national industries of primary pro duction now are under some kind of central check, so that the thousands of people, whose future is wholly depend ant on each industry, can hazard a guess at their prospects.

But, in copra production, there is no official interchange of data, and no attempt to regulate output. Planting and production go on blindly. One cannot avoid some speculation in planting trees which do not come into bearing for 8-12 years; but the actual cutting of copra, and its carriage to market, should not be the complete gamble that they are under present-day conditions.

Some form of international check over the industry is needed, as is the case with rubber, sugar, tin, etc. Many people appear to have been thinking along those lines lately; but now, unhappily, the out break of war has rendered difficult the consideration of any concrete plan. The matter should have attention now, how ever. Any rise in copra prices must be carefully examined. It is important to know whether it is a temporary result of war or post-war development, or whether prices are likely to settle on a higher level.

We have been kindly permitted to pub lish extracts from a memorandum, on this subject, written in July, 1939, by Mr.

R. E. P. Dwyer, the economist botanist attached to the Department of Agricul ture, New Guinea. Every planter and trader in the Pacific Territories will be interested in Mr. Dwyer’s suggestions The memorandum is in the hands of the Ad ministrator of New Guinea; and if the latter, assisted by his Department of Agriculture, could give a lead in this matter he would earn the gratitude not only of New Guinea planters, but of copra-producers throughout the Pacific.

IN his memorandum, Mr. Dwyer describes how closely the prosperity of the Territory is linked with copra production and copra prices, and how important it is that an effort be made to assess the prospects of the industry.

Mr. Dwyer, addressing the Director of Agriculture, suggests that the Admini strator approach the Australian Depart ment of Commerce, and ask it to insti tute inquiries to ascertain:— The approximate world areas under cultivation for coconuts and approximate areas in bearing.

Whether any abnormally large areas are due to come into bearing. Is it pos sible to establish any peak period or year when this is likely to occur?

Are there any factors operating which will limit future plantings?

It is believed likely that there are more than 600,000 hectares planted which are not yet in bearing. Is this a true esti mate and is it significant as to the future of the industry?

Total copra production—world figures.

Copra exports, with countries of origin. (If possible, other coconut products such as desiccated coconut, should be added to this in terms of copra.) Copra imports—as to separate countries.

Coconut oils—as to separate countries.

Other oil seeds—as to senarate coun tries.

Other vegetable oils—imports as to various countries.

Animal fats—imports as to various countries.

Whale oil—imports as to various coun tries.

Consumption of copra cake and meals in relation to other vegetable oil cakes and meals.

Tariff restrictions, also legislation op erating, and their trends. How is this linked up with the nolicy of internal self-sufficiency and protection of local industries by various countries?

Whether variations in prices of copra and coconut oil are constant; their trends; and whether prices are liable to stabilise at lower or higher levels in , the future?

Relationship of coconut oil to other fats and oils used in margarine, soap production and other important indus tries, and whether the proportion used is tending to reduce, remain stable or in crease?

Are the uses for coconut products likely to expand; or, conversely, are the demands for certain by-products such as glycerine, diminishing?

Are the low prices of coconut oil in con formity with other world primary pro ducts; or, owing to other factors operat ing, such as the uses of substitutes, is this a declining industry, in any case?

“mHIS subject is of sufficient import i ance to be approached internationally, as all of the South Seas and Colon ial possessions are affected, as well as foreign copra-producing countries”, says Mr. Dwyer.

“Undoubtedly, the Governments in America, the Netherlands East Indies, Ceylon, Malaya and the Philippines have already made enquiries along these lines and might be asked for any data they could provide on the subject.

“Information is also required as to any action that is being taken by the Ad ministrations and Governments of other countries, in view of the present condi tions of the copra industry, owing to the depressed state of the world’s markets.

“It is suggested that it would be help ful to co-operate with the private firms here, who could get more information from their sources of marketing, and from various brokers’ organisations, than it is possible to do otherwise.

“A confidential report by the Colonial Office in 1935 for the Fijian Government, on their copra market, was a valuable guide to their development over the pasL four years.

“The Economic Departments of the Bank of New South Wales and the Com monwealth Bank also examine the pros pects of this industry, from time to time, and submit reports to their managers. It is likely that these organisations could assist our enquiry.

“General expressions of opinion will be valuable, but as much data as possible should be obtained from various sources to aid us in drawing our own conclusions.

In addition to the immediate value of such data, there is the question of whether further planting of coconuts should be encouraged or discouraged.

“The supplementary report of the New Guinea Mortgagors’ Relief Committee has undoubtedly pointed out most of the salient facts covering the present position of the industry here, and it is not neces sary to expand on this subject. It should be pointed out, however, that, although the present London prices are somewhat higher than in 1934, the effective prices here are very little higher. This is due mainly to the higher freights and, also, the financial position of the plantations is not so strong, as, for example, it is difficult to get advances and the retro gressions of the older areas are coming to be the cause of higher costs of pro duction on such areas.

“If it is determined that the world prospects are not good, then the Depart ment of Commerce might be asked to investigate the marketing possibilities in Australia for vegetable oils from the Commonwealth Territories.

“It is noteworthy, for example, that Levers are in a position to allow their plantations £l5 per ton for copra which would not stand freightage to the foreign markets. Apparently, this copra has not time to depreciate, but can be used by them in their own mills.

“Then there is the question of whether Australia is using a large proportion of other vegetable oils from outside coun tries and whether this is capable of be ing replaced by copra, and whether they can expand their uses for feed cake in the drier areas.

“From the New Guinea point of view,

remem K bere £ that ™ ost of the properties were bought on a basis of SL Pnce. whll e from 19J1 until the end of 1938 (inclusive), has been £l3 per ton lor Rabaul hot air copra. At the present time, the prices are £9 12/6 London, and £6/4/- Rabaul, for this grade of copra.

If such a trend were to continue, the market value of these individual properties would decrease in accordance with ;"f Ql marke , t val .Uf of the product, and our sound.” SSetS WIU b 6 corres P ondln gly less 4k. A

Mrs. C. R. Maitland-Pattison, widow of Dr. C. R. Maitland-Pattison, late of Fiji and the British Solomon Islands, passed through Sydney on September 16 on her return to Kangaroo Island. South Australia, after a holiday spent in New Zealand.

Miss Wanda Neibuhr, of the S.D A Mission school for girls at Vilirupu Papua paid a short visit to Australia at the end of August, in company with her mother She returned to the Territory in Septem -001.