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A Copra Factory

Advocated by Leading Planter of Papua

UP to the moment of this writing, the only practical plans that have been put forward, as a means of assist ing the copra industry in its present parlous condition, are two—one by Mr.

George Murray, M.L.C., Director of Agri culture of New Guinea, and one by Mr.

G. A. Loudon, oresident of the Planters’

Association, of Papua.

Mr. Murray urges the wholesale stor age of good, properly-cured copra, and that special steps be taken by the Ad ministrations concerned to build large, additional stores. Mr. Loudon advocates the use of a copra factory ship, to cruise in the Islands—storage in another form.

Mr. Loudon has kindly supplied us with the following details; — Mr. George Murray wrote me fully about his scheme of copra storage and I countered with a suggestion that a copra factory ship should be commis sioned to cruise in these Islands. I have not heard from him, but I sent a copy of my letter to Mr. James Burns. Mr.

Burns replied at some length, mainly commenting on the high costs of running ships in Australian waters and the high insurance rates, war risks, etc. I then placed my suggestions before the Papuan Government. They replied that the Commonwealth Government appeared to have provided the solution, and thought it better to leave my suggestion in abeyance, for the moment.

The following is a copy of part of a letter I sent on August 6 to the Official

Secretary of the Papuan Government, with some additions I have made; I firmly believe that the copra factory ship is the only method to create cheap production and a market. The milling or copra and treatment of by-products would be carried out at the point of pro duction. The ship would anchor off the estates, the transport from unsuitable beaches or poor anchorages would be carried out by a small vessel, attached to the factory ship. With the exception of supervising Europeans, the whole crew and factory would be run by Papuan or New Guinea labour, so that costs would be kept to a minimum. In support of this, i would mention the various desiccated coconut plants in these islands, staffed entirely by natives, with a European manager only. The treatment of desiccated coconut is far more intri cate than the treatment of a crushing plant for copra.

I suggest the formation of a company to operate on the coasts of Papua, New Guinea and the Solomons, the sub scribers to be:—The British Government (subscribe from Colonial Fund) £100,000; the New Guinea Government (loan from Gold Tax Funds) £100,000; Papuan Gov ernment (borrow) £50,000; Burns, Philp &' Co., Ltd., and W. R. Carpenter & Co., Ltd., each £75,000; and general public and planters £100,000; total, £500,000.

The interest rate on the above funds would be 4J per cent, to 5 per cent, and, after writing off depreciation and re newals, the balance would be paid to the suppliers, according to tonnage delivered and quality of copra. It could also be arranged to pay a bonus to shareholders in the above company. The details of financing are best left to the Govern ments and firms concerned. It is a great opportunity for them to show some sym pathy with the primary producers of

these Islands, who live and work in un healthy, uncivilised conditions with very little profit or chances of saving.

In discussing this matter, a shipping expert mentioned the high rate of in surance and war insurance for such a vessel. As the factory ship would be oper ating only in territorial waters, within the three-miles limit most of the time.

I cannot see that insurance should be excessive. A special rate would be arranged when the vessel was despatched to Australia for overhaul.

With the inclusion of the Solomon Is lands, the factory ship probably would be called unon to mill about 100,000 tons of copra p.a. This would produce:— Coconut oil: 15,000,000 gallons.

Oil cake; 30,000 to 40,000 tons.

Coconut fibre: There would be enough short fibre, long fibre, mattress and spin ning fibre to supply the whole of the re quirements of Australia and N.Z.

Coconut charcoal.

Glycerine: Glycerine is a very neces sary war product. Figures are not avail able as to quantity of glycerine to oil produced.

The production of soap in Australia is more or less under the control of tne Combine, and it would be necessary for the Government to insist on a proportion of coconut oil being used in every pound of soap, which would be all to the ad vantage of the housewives of Australia.

Imports of any form of grease for the manufacture of soap should be prohibited.

After the war England and Europe will absorb more butter than Australia can produce. Markets in the East should also expand both for butter and margarine.

Butter in Australia is expensive, and often beyond the means of the working classes. It has been proved that margar ine, produced from vegetable oils is equal

to butter in vitamins, and further, that it is more easily digested.

Prior to the war, increasing quantities of coconut oil were being used all over Europe for cooking purposes. Large mills had been erected, and the shortage of olive oil was made good with substitutes, such as coconut oil. If every housewife in Australia and New Zealand consumed two gallons per annum our troubles would soon be over; and this could be brought about by an advertising campaign.

I am given to understand that coconut

oil can be used as a fuel in diesel engines, and it is said to give 75 per cent, effi ciency, against 100 per cent, for pure diesel oil. Nothing is said as to its effi ciency, when mixed with diesel oil. At present, every effort is being made in Australia to replace oil fuel with char coal. Diesel stationary engines and farm tractors could probably use coconut oil.

At the moment I am paying 1/6 per gallon for diesolene. One ton of copra produces 150 gallons of coconut oil, equal to £ll/5/- per ton, if valued on basis of diesolene. This same ton of copra will

also produce by-products—copra cake and glycerine.

The use of coconut oil as lubricating oil is a matter for experiment by the chemist.

Castor oil is supposed to be one of the finest lubricants. Why not coconut oil?

Enormous savings can be made by the use of the factory ship. By these savings, a very low-priced cattle-cake and sheep-nuts can be produced for the Aus tralian farmer and sheep man. Unlike the farmer in Europe they know little of the benefits of feeding cattle-cake in time ol drought and shortage of fodder. We would have surplus supplies of Queensland molasses and cotton-seed to make the copra cake more attractive for sheep.

Charcoal from coconut shell can be used for gas masks and other war re quirements, as it is the purest form of charcoal. It can also be burned in pro ducer gas plants, and in plants attached to motor cars. It would make a cheap form of transport for the coconut planter.

In summing up, let us see what savings could be made in handling and transport of 100,000 tons of copra, if a copra fac tory ship was anchored alongside plan tations situated on an average, say, 100 to 150 miles from an Islands shipping centre, such as Port Moresby, Samarai, Rabaul or Kavieng.

I am basing these calculations on actual transactions prior to the war, in June, 1939, when hot-air copra was selling in London at £ll/7/6 per ton; — Copra Production Costs Cost of manufacture and bags 5 0 0 Loading 2 6 Coastal freight 1 5 0 Insurance 1 8 Wharfage 10 Freight to Europe and selling costs 3 0 3 Total cost 9 10 5 Gross Realisation 11 7 6 Profit per ton 1 17 1 Profit per acre at I cwt. p.a. 18 61 Equal to profit of 4.6 per cent., with out allowing for depreciation or amorti sation, on a capital value of £2O per acre.

Copra Factory Ship Savings Handling from beach—no saving as copra would have to be de livered to factory ship ..

Bags—l,4oo,ooo @ Bd. each .. 49,583 Coastal freight—loo,ooo tons @£l 100,000 Wharfage at shipping centres — @l/- 5,000 Coastal insurance—@ 15/- .. .. 8,531 London shipping and selling costs, £3/0/3 p.t 301,250 £464.364 This is equal to a saving of £4/12/10 per ton.

The suggestion of a copra factory ship, of course, will bring a good deal of criticism, but I consider the costs would be very much cheaper than a factory whaling ship for the following reasons:— 1. The whaling factory ship, with its attendant chasers, is operating perhaps 15,000 miles from its European base. 2. It travels with attendant chasers to the whaling grounds empty, and returns only with a full load, if in luck. 3. It is quite speculative, with no guar anteed turnover. 4. The risk of loss of ships operating in Arctic seas, is considerable. 5. Only highly-paid Europeans are em ployed. 6. The price of whale oil fluctuates just as much as copra.

A great deal more could be written on this subject, but I will leave it to those more qualified than I am to judge if it could be made a financial success.