Future Of Copra Industry

Representatives of all South Pacific Territories Attend Conference in Sydney

of the most interesting developments in the history of south Pacific administration took place in December when, at the invitation of the Australian Government, delegates from all the British and French Territories south of the Equator assembled in Sydney to consider the position of the South Pacific copra industry and to decide whether it was possible and practicable to take united action in relation to same.

THE full list of the members of the conference will be found on the front cover of this issue, under the group photograph.

The conference, under the chairman ship of Hon. T. J. Collins, Australian Minister for External Territories, com menced its sittings in the Commonwealth offices, Sydney, on December 19; and, although Christmas holidays caused dis location. the members stuck at it during the remainder of the month, and the conference finally did not break up till January 9.

This is the first time in the history of South Pacific administration that the representatives of all these territories have met in this way. Such a confer ence had been urged on many occasions, as a means of exchanging experiences between administrations whose problems and general conditions are almost iden tical: but although some of the western administrations had come together once or twice, and there had been more than one conference of Polynesian admini

strators, a meeting of all administra tions, British and French, had never before been regarded as possible.

It was a very serious matter —namely the effect of the war upon the: copra industry—which brought them all to gether on this occasion; and, if it has initiated a series of such conferences and opened the way to a discussion of many Pacific problems in common, the copra collapse will not have been an undiluted tragedy.

MR. Collins, the Australian Minister who had just taken charge of the Department, and Mr. J. R. Halligan, the Departmental head, were responsible for the organisation of the conference.

The original suggestion came from Sir Harry Luke, Governor of Fiji. Mr. Collins liked the idea, and asked for the co operation of New Zealand and the French colonies, which was gladly given.

The conference discussed many aspects of the copra industry, and a large num ber of alternative plans for assisting the

industry, temporarily and permanently; and it listened with close attention to the views of numerous witnesses who came before it.

Each delegate came armed with statis tics relating to his own territory and to the position in general; and, when all of these were pooled, it was apparent that the general situation was approxi mately as follows: — EXCEPT for the copra which Britain could consume, the European mar ket for copra was practically cut out, which meant that only the British market was available for tne huge pro duction of Ceylon, India, Burma, Indo china, Malaya, Dutch East Indies, East Ainca and Pacific Islands.

It was apparent that, owing to the need for conserving shipping, Britain would prefer to take the copra nearest at hand rather than south Pacific copra, which is most distant from the European market.

Therefore, pending the restoration of normal conditions, it became necessary to regard south Pacific copra production as being practically cut off from its normal marxet. Unless new markets could be found for this copra, or new uses for coconut oil developed, there were avail able only two alternatives —namely, store the copra, or cease production.

Various plans for pooling and storing the copra were considered; but, before committing itself to these, the conference very carefully examined (a) the adjust ment of existing copra markets to south Pacific production, (b) the possibility of new markets, (c) the development of new uses for copra.

An examination of available data indicated that there would be a market for a certain amount of Pacific Islands copra in Britain; that there also was a market for a definite quantity in Mexico; that large crushing mills which are being erected in Canada by interests associated with Messrs. W. R. Carpenter & Co. Ltd. probably will provide a new and unexpectedly large market for a large quantity of Pacific Islands copra; and that a few thousand tons per annum of copra (probably Samoan) will be dis posed of in New Zealand and Australia as fodder for stock, especially pigs.

It was understod that, during the pro gress of the conference, important com munications passed between the Austra lian Government and the British Gov ernment on the subject of providing a market for south Pacific copra.

The matters discussed at length included, of course, the system of keep ing a skeletonised copra industry to gether by making sustenance allow ances to planters of sufficient volume to permit them to remain on their planta tions.

Position Of Papua

rE new Administrator of Papua, Hon.

H. L. Murray, was welcomed to the conference some days after it started. When responding, and express ing his eagerness to assist the copra industry in any way possible, he ex plained the position of Papua.

The Territory of Papua was by no means a giant among the copra producers of the Pacific, but the industry was of much more importance to Papua than the quantity of copra exported might suggest. For the four years, just before the war, their average export of copra was just over 11,000 tons annually. Their best year was 1936-37, when we exported over 13,500 tons. The price then was good, and there was increased native production.

In the year ended June 30, 1939, copra made only 14 per cent, in value of the total Papuan produce exported. But this percentage did not mean that the economic stability of Papua was dependent only to that extent on copra. A great proportion of Papua’s settled European

population had been dependent on copra, and many thousands of natives were partially dependent on it. Further, the proceeds of the copra industry were spent wholly in the Territory.

“The copra industry has its place in our native policy,” continued Mr. Murray. “We have for many years induced natives to plant coconuts individually, and to make coconut plantations collectively. By this means they have been able, either directly or indirectly, to pay their taxes, and to gratify their simple needs. The shrinkage of the native Taxes Fund (which is expended solely in matters directly and exclusively benefitting the natives) is embarrassing us in continuing our medical, - educational and other services to natives; while

the fact that the Government appears to have misled them about the return they would derive from their industry has produced some be wilderment which might easily undermine their confidence in us to some degree.

“But that is only one aspect of the matter.

We have much in mind the position of our European producers generally, and of our 40 or 50 individual European producers, and their families in particular. Their position is much worse than that of the natives because, in the case of the Europeans, there is no equivalent to the normal village life, which provides a native with his hut, his garden land, his hunt ing, fishing, etc., which at least enable him to live without hardship.

“The Government revenues have also suffered

severely, owing to the absence of any returns from our own coconut plantations, the loss caused by the paying off and return to their villages of between 3.000 and 4,000 native labourers from the plantations, and many other direct and indirect losses caused by the present position.”

Copra Generalisations

MR. R. W. ROBSON, editor of the “Pacific Islands Monthly”, was courteously invited by the chair man to address the conference. He sub mitted the following notes: — It would be impertinence on my part to attempt to instruct this conference in matters relating to the copra industry—most of the members know more about it than I do. But there are certain broad generalisations based on the present extraordinary position which I am glad to be able to place before the delegates for their consideration.

History Of Copra Industry

First—a brief survey of the copra industry gives the following facts: — (a) There have oeen extraordinary fluctuations in copra prices during past two decades, which clearly are the result, apart from tne law of supply and demand, of the manipulations of the world copra markets by an all-powerful international combine, and of the steady introduction into a field, hitherto held almost entirely by coconut oil of other oils, hitherto debarred by their character, but now admitted be cause tney have been treated by new and increasingly efficient processes of de odorisation and purification, etc. tb) There was, prior to the war, increasing recognition of the fact that the copra market is controlled largely by forces superior to the law of supply and demand —so that individual planters have not felt the same sense of security and, to an in creasing degree, they have been seeking alternative crops, as an insurance against the inevitable lean periods. (C) This industry, formerly based on private enterprise by individual planters, has been invaded by large trading corporations, who have to an increasing degree taken over old plantations, or established new plan tations —so that, year by year, the copra owned or immediately controlled by the big firms has become a larger proportion of the total output of the South Pacific.

These circumstances had created difficult con ditions for the South Pacific copra industry long before the outbreak of the present war.

Should Industry Be Saved?

The present war introduces a new set of difficulties, without apparently solving any of those which previously existed. The whole of the European market, except that of Britain, has disappeared; and even if it were re-opened to-morrow, there is insufficient tonnage available at a moderate rate to permit South Pacific copra to be sold profitably in Europe. That, I under stand, is the problem with which this con ference is immediately faced.

Therefore, it boils down to this: In view of the difficulties which confronted the industry prior to September, 1939, plus the acute troubles created by the war, is it worth-while to attempt to save the copra industry?

Without going into it at length, I express the opinion, which is the opinion of most competent students of the industry, that the post-war world will require a very large and possibly increasing quantity of coconut oil, but with the provisos that it is unlikely that the price will ever be sensationally high, as it was after the 1914-18 war, and that some attempt must be made to control the Unilever combine.

The Pacific Administrations cannot afford to let the industry die if there is any prospect of the reasonably profitable sale of its product after the war. Some territories, to an increasing ex tent, have established industries alternative to copra; but there are other territories —and, more particularly, important sections of the terri tories which have alternative industries —which are wholly dependent upon copra. The dis appearance of the copra industry from the South Seas, wiping out a vast organisation of little traders and shipowners, would create a depression that would last for decades.

Suggested Alterations

If the interests concerned are to turn to the question of how to keep the industry in being, I submit that the alternatives are:—

(Continued on Page 53)

(a) Subsidies to growers, without any attempt to collect the coconuts for commercial use, until there is a market clearly available; tb) A system of pooling copra, and storing it, in the hope that a market may eventually open somewhere, growers to be financed on a basis of contributions to the pool— as in the Dutch East Indies; (c) A system of establishing crushing mills in central places in the groups, or possibly using a mill-ship; (d) A search for new markets—North America, for example—(U.S.A., Mexico, Japan); (e) The possible development of new indus tries, based on South Pacific coconut production—i.e., the Carpenter plan of establishing large crushing mills in Canada, contiguous to the North American market.

In considering these alternatives it is neces sary to remember that nowadays, in the majority of Territories, copra production can be divided sharply into three classes—namely, the copra produced by the native landowners, the copra produced by individual and independent Euro pean planters, and the copra produced by th® large corporations, to which reference has al ready been made. Each of these classes of copra production represents in itself a problem for the individual administration—and, in that regard, I respectfully suggest there is the most urgent need for consultation among the dif ferent administrations.

Attitude Of Big Corporations

I am not aware of the attitude of the big South Seas trading and planting corporations towards this conference. But their interests in the various Territories are so great, and so delicately balanced, that I should not be sur prised if they display a certain amount of sensitiveness and suspicion, and what mav appear to be an unwillingness to co-operate Perhaps delegates will permit me to say that this situation requires tactful handling. I think that the problems with which you are faced cannot be solved without the goodwill and co-operation of these great corporations—while. *t th® same time. I imagine that delegates, at this stage, are unwilling to compromise them s® I ves in any way with nurely commercial con siderations. I believe, however, that the big cornorations are nuite sincerelv anxious to co onerate—and, if I were handling this delicate situation. I should make a straight apneal to their patriotism. The heads of all the big corporations are not unconscious of the fact that, in their vast developmental operations they have performed important Imperial service in the South Pacific.

Finally, and most important of all I would urge upon this conference that it recognises that herein may lie the beginning of a per manent organisation that will control or in nuence administration and development in tb p South Pacific in the futnr®. The presence here of the representatives of Free France is highly significant. J