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pp. 37-39 · Read in the full issue
Process Copra In The Islands
Establish Margarine and Soap Factories Urges Fiji Planter
Letter to tlie Editor
FROM published reports, the recent Copra Conference in Sydney appears to have been concerned mainly with finding a market for copra. That is all very well, but what really is wanted is a price which does in some respect give to copra its true value in relation to the products manufactured from it. Such values could be obtained in the Islands easily enough if mills were erected and the oil processed either into soap or margarine for export.
If we had the necessarv factories in the Islands we could do the one thing that has been a thorn in the side of planters for years—keep the huge profits from margarine and soap in the Pacific.
After this war there will be a world-wide, clamorous demand for all kinds of oils and fats.
I have gone carefully into the position and it seems to me that there is an ab surd difference between what we planters receive for our copra and what the mar garine and soap manufacturers get for their retailed goods. Consider these figures:— Copra is worth in Fiji £3/10 - per ton; 5 tons, therefore, are worth £l7/10 -.
From this copra can be crushed 3 tons of coconut oil (from which can be pro cessed 3 tons of margarine) together with 2 tons of cake residue.
The present price of low grade mar garine in England is sd. a lb., which is equal to £46 13/4 per ton. Three tons of margarine, therefore, would be worth £l4O.
Taking our original 5 tons of copra, this gives us:— 3 tons margarine worth .. £l4O 0 0 2 tons coconut cake at £7/10- per ton £l5 0 0 £155 0 0 Less cost of raw material (5 tons of copra) .. .. £l7 10 0 Difference £137 10 0 Thus we have £137/10/- floating in the air between producer’s price for his raw product (5 tons of copra) and the price paid by the consumer for the lowest valued margarine. In round figures, that gives £27/10 '- a ton out of which to pay all overhead expenses such as manufac turing, packing, marketing, freights, in surances, etc. Surely there is scope here for a higher price to the grower of copra.
Now, take copra at its relative value against eating margarine, for which the standard retail price in England is 9d. a lb. This means £B4 per ton, giving £252 for three tons.
Again taking our basis of 5 tons of copra, this gives us:— 3 tons margarine worth .. £252 0 0 2 tons coconut cake .. .. £l5 0 0 £267 0 0 Less cost of raw material (5 tons of copra) .. . . £l7 10 0 Difference £249 10 0 This equals £49/18/- per ton of manu factured margarine against a raw material cost of £3/10/- per ton. Other costs, of course, must be taken into con sideration: crushing, manufacture, added vitamins, overhead, freights, insurance, and so on. But does it take £49/18/- to manufacture and put in the consumers’ hands one ton of margarine? Far from it. I think; at the most, it would be £2O-£25 pounds per ton inclusive of every charge. That being so, there appears to be a margin of roughly £2O per ton over and above the price paid to the grower of copra.
Whichever way you look at the figures there is no mistaking that 5 tons of copro, ms-kc 3 tons of oil, 3 tons of oil but’ £l7/10/* 18 C ° St of the raw product is but £l7 10 Similarly, in the manufacture of soap (which is worth £25 per ton), there is a good margin between the value of the manufactured article, after all making and marketing costs are deducted, and the amount which copra producers receive.
What’s wrong with a well-advertised good quality coconut oil soap made in the islands and guaranteed to contain nothing else in the way of fats but pure coconut o jj—ft would sell the world over like hot cakes.
Always we hear the same old cry: Look for markets for copra. Why not look to manufacturing products from copra?
T/p pn thp Islands people in work both in
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in profit out of the manufactured articles.
The Unilever combine’s annual profit proves this. „ m I maintain that the Pacific Terri tories should unite and finance a scheme of self-support by handling all products manufactured from copra. They could finance a central crushing mill and manu facturing plant. Copra growers should then be able to get a fair reward for their labour, instead of being bled white by the monopolists.
Even here in Fiji, why can’t we get the CSR Co. to crush copra in its mills during the slack season and manufacture margarine and soap. It seems to be an alert, progressive concern—it took up pineapple canning in Fiji and is making a do of it after quite a number of others had failed. Perhaps the Fiji Government would help financially to put in the necessary plant if it saw that the Colony’s copra growers would be assisted by the plan.
I am, etc..
“Ga Ni Bulu.”
Vanua Levu, Fiji. 22/4/1941.