Shipments Of

Copra

Serious Difficulties in Central Pacific

THE following statement about the copra market was issued in Suva, Fiji, on November 16, with the approval of Messrs. Burns Philp (S.S.) Co. Ltd. and Messrs. Morris Hedstrom Ltd.: During September, 1939, the local copra market remained unchanged be cause no prices were quoted from Lon don and it was understood that the Brit ish Government intended to exercise control over the selling of copra in the United Kingdom.

On September 29, advice was received that Burns, Philp and Co. Ltd. and Dalgety and Co. Ltd. had been appoint ed by the Copra Association to protect the interests of all South Sea shippers, and it was hoped shortly to get a price ruling from the Ministry of Food.

On September 30, advice was received that the Ministry had fixed the price of South Seas Copra as follows; F.M.S. £l2 per ton; plantation £l2/15/- per ton.

On that basis the buying prices in Suva and Levuka were fixed at: F.M.S. £7/2/6 per ton; plantation £7/7/6 per ton.

On October 13, advices were received from London that buying prices had been reduced by 7/6 per ton and the local market was, therefore, fixed at: F.M.S. £6/15/-; plantation £7.

On the same date, Burns, Philp and Co. Ltd., Sydney, cabled to their London office as follows: “Copra industry unable carry additional war costs affecting es sential supplies, freights and generally higher cost production. Many small trad ers and planters insolvent or abandoned properties. Lost all hope. Also natives discouraged from production. On behalf of producers we ask you protest to Min istry reduction 7/6 per ton buying prices’. They also arranged with Dal gety and Co. Ltd. to cable to their prin cipals in London in a similar manner.

On October 16. Burns, Philp and Co.

Ltd., Sydney, received the following cable from their London office: “Yours 13th Dalgety ourselves protested Ministry who state no intention their part force prices down. Reduction 7/6 occasioned by nor mal offerings Straits at reduced price.

Our opinion reduction only temporary’’.

Mr. R. W. Robson, managing director of Pacific Publications Ltd., Sydney, and editor of “Pacific Islands Monthly”, took an active interest in the matter and con sulted the companies in Sydney princip ally interested in the copra business. He then telegraphed to the Department of Commerce in Canberra urging in strong terms “that if the South Seas planters were to carry the higher war costs and be saved from bankruptcy, the Austra lian High Commissioner should be asked to make representations to the British Government that the price of copra should be fixed at a higher rather than lower level”.

Almost a month has elapsed since these representations were made and so far no information has been received as to restoration of the original price.

Meanwhile, shippers realised that in creases in rates of freight were likely to have a more serious effect on prices than a reduction of 7/6 per ton in the London buying price of copra.

On September 22, the Swedish steamer “Tolken” arrived under charter to Morris, Hedstrom Ltd. and Burns

Philp (S.SJ Co. Ltd. She finished loading copra m Suva on September 27, in Levuka on September 29, and in Savu Savu on October 2; by that time she had loaded 2,500 tons. On October 4 advices

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cognise difficult circumstances and prepared consider modest adjustment when probable legal position known”.

On October 20, a cable was received from London stating that counsel in London were of the opinion that the owners were not entitled to demand extra freight for carrying the copra to Liverpool and Hull but that they were entitled to refuse to go to ports within

the war zone. The cable went on to say that the owners demanded addi tional freight of 27/6 per ton —or, al ternatively, the proved extra cost in volved by war conditions.

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Port and claim their full freight. Finally, the charterers agreed to pay an extra 20 - per ton on something over 5,000 tons of cargo.

Whilst this discussion was going on charterers received from Australia ad vices indicating that Australian copra

shippers had been compelled to agree to increases in freight on a somewhat simi lar basis to that enforced by the owners of the “Tolken”.

On October 19, charterers wrote to the Acting Colonial Secretary, Fiji, placed the facts before him and explain ed that if another vessel were chartered to load for the United Kingdom at the increased rate of freight local buyers

would be compelled to reduce their buy ing price of copra. The 20/- increased freight rate is in English currency and is equivalent to about 22/4 Fiji cur rency. A reduction of this amount would bring the buying price in Suva and Le vuka down to about £5/12/6 per ton for

F.M.S.

On October 27, Sir Maynard Hedstrom and Hon. John Trotter had an interview with the Governor, at which were also present the Acting Colonial Secretary and the Director of Agriculture. The Governor gave Sir Maynard Hedstrom and Mr. Trotter a sympathetic hearing and the same day despatched a cable to the Secretary of State for the Colonies.

Under the arrangement whereby the British Government agreed to purchase the surplus sugar crop from Australian growers the price was fixed at a higher rate than that ruling prior to the war.

One clause in the agreement provided that the British Government would bear the cost of any increase in freight above the rate ruling at the time the contract was signed. Sir Maynard Hedstrom and Mr. Trotter suggested to His Excellency that if the British Ministry of Food would not agree to an increase in the buying price of copra in London it might agree to bear the cost of any increase in rates of freight above those ruling prior to the outbreak of war.

The two companies have recently chartered the “Admiral Wiley”, for January February loading. She is ex pected to carry about 3,000 tons of copra and will, therefore, do something to re lieve accumulations. The Mexican mar ket is somewhat uncertain and, prior to the war, its consumption of copra was very limited. Owing to the war, condi tions may have changed but local buy ers at present have no certain know ledge as to what quantity that market can now absorb.

Prospects in the local market are somewhat obscure, but the two com panies are hopeful that in the near future they will secure another vessel to load, either for the United Kingdom or Mexico.

This statement is published to make it clear to producers that local buyers are making every effort to assure con tinuity of shipment from the three groups—Fiji, Tonga and Samoa.