Against System

Crush Copra in Islands Arguments For And Against System

By Vincent C. Davis

COPRA planters in New Guinea and Papua have had their position ex plained in recent articles in the “P.1.M.”

Increased costs in freight, insurance and marketing have all gone against the planter, a burden which has not been fully allowed for by the increase in price of copra to £l3/10/- sterling per ton.

Obviously the best thing for the planters to do, as the “P.1.M.” has stressed, is to combine for their own betterment. Unless co-operation can be achieved, the lot of the planters will remain bad, and there will be little in ducement for them to continue produc tion.

One solution lies in setting up crush ing plants in the Islands, to handle copra on the spot, and to export unrefined coconut oil, instead of dried copra. Big savings in freight and bags would be

made, and a better price obtained for the product: for planters would figure not only in the price of the original copra, but also in the price for the coco nut oil.

Shipping experiments made by Amer ica have evolved a process of shipment which makes transportation of coconut oil relatively simple. The oil is heated before loading and run, in a molten state, into vats on the ship, where it sets. Then, when the ship nears its destination, the vats are heated and the oil run out on berthing, again in a molten state. There is no heavy expen diture on bags, as is the case when dis posing of raw copra.

Costs of crushing copra have been estimated by the United States Tariff Commission at approximately £l/10/per ton.

In American mills, unrefined coconut oil is produced at the rate of 60 per cent, of coconut oil per ton of copra.

Taking the whole copra production of Papua and New Guinea as 90.000 tons a year, this would approximate a return of some 54,000 tons of oil.

Latest information available indicates the following prices for unrefined coco nut oil as being:— Australian Price: £A3I per ton.

London Price: £22/2/6 per ton sterling.

For success, the scheme would depend greatly on the ratio of coconut oil pro duced per ton of copra, and nothing but the most up-to-date crushing plant should be installed. Labour costs in the Islands would be less than in America.

Income would be derived, in addition, from the sale of copra cake, a by-pro duct which would figure importantly in making the proposition feasible.

Similar plants are already working in Philippine Islands, Straits Settlements, Australia and Ceylon. If they are eco nomical there, there is no reason why they should not be economical in the Islands. With plants run on a co-opera tive basis at, say. Port Moresby, Rabaul, Tulagi, Suva, the financial condition of planters would be more stable.

Might the suggestion go out to copra plantation-owners that they should combine, and set up a committee to in vestigate financial aspects, cost of crush ing plants, etc., so that full details might be placed before them. The fate of their industry may depend on the results.

Editorial Note

OUR contributor puts forward an in teresting plan, but is guilty of wishful thinking. Does he suppose that the idea of crushing copra in the Islands has not been carefully examined many times, in past years? The system has advantages—but not so many as to justify a sweeping reorganisation of the industry.

Five tons of first-class copra is now worth £66/10/- sterling, in London. That copra, crushed, would produce three tons of oil, worth £66/7/6, sterling, in Lon don. There is no difference, therefore, in the value of the main product. Crush ing in the Islands would have the fol lowing advantages:— 1. The value of the coconut-cake (not much, after the cost of shipment to market is deducted). 2. Lower cost of freight (three tons instead of five) from the Islands to London. This would be partly offset by the costlier method of shipment. Copra, in bags, is easily handled and can be shipped in anything that floats. Coco

nut oil would have to have special pro vision made for it, in ships and appli ances. ' 3. The saving in bags. But, even then, it would be necessary to provide bags, for carriage from the plantation to the crushing plant.

But the war is creating a freight situation of great difficulty, and it now may be found that, in order to save shipping space, crushing of copra in the Islands is practicable and desirable.