Copra
pp. 6-7 · Read in the full issue
Short Supplies High and Higher Prices
BECAUSE the only copra available to the Allied nations in the Pacific are the limited amounts which come from Fiji, New Hebrides, New Cale donia, Tonga, Samoa, Cook Islands and French Oceania, there has been keen bidding for the available supplies.
Fiji is the chief producer, nowadays, and the price officially fixed in Suva, as reported last month, is £lB (Fijian) per ton, f.o.b. Suva. But as high as £24/10/- (Australian) per ton has been paid for copra in Sydney, and one hears whispers of a “black market” where the rates are still higher. £lB (Fijian) is, of course, equal to £2O/5/- (Australian).
These high prices will greatly stimu late production in all the South Pacific territories, which are free of the enemy, and it is possible that the total output may soon spring to surprising propor tions. But there is one fatal handicap upon this otherwise lucrative trade—lack of shipping.
Shipping was short before December 7, and now there are fewer ships than ever.
The destruction of American shipping by enemy submarines off the Atlantic coast during the past three months has been very serious—it is one of the ugliest angles of the war situation—and every available ship in the Pacific has been needed for the carriage of troops and war materials.
It is an uncertain outlook. A mag nificent price is available. But the un fortunate men with plantations in New Guinea, Solomons, etc., cannot take advantage of it; and if the output of the unoccupied territories increases too rapidly it is possible that the Govern ments will have trouble with shipping space. But if the shipping position im proves, South Seas copra-growers may be in for a good time.
Present indications are that the Japs will be driven out of New Guinea and the Solomons much sooner than from the East Indies and Philippines. It is just possible that our people will get back to their coconut plantations, in the former territories, in time to get some benefit from the high copra rates, before East Indies and Philippines begin to pour out their huge normal supplies.
Position In Fiji
THERE has been a good deal of mur muring in Fiji because the coconut planters are finding that they are not getting anything like the £lB per ton which was officially announced some weeks ago. Some planters resent the fact that copra is now being put into two grades, so that the planter is re ceiving £l5/15/- for “Merchantable” and £l4/15/- for “Plantation Grade”. As two thirds of the copra goes “Plantation”, and the planter has to pay his own freight from his port to Suva, the price on plantation works out at a little better than £l3 per ton.
Such a price, equal to £l4/10/- (Aus tralian) on the plantation, looks like filthy luxury to the poor, homeless planters of New Guinea, Solomons and Papua; but some of the Fijian planters have been expressing disappointment, and a particularly loud protest from Mr.
Percy McConnell, the doughty fighter of Mount Vernon Estate, brought a semi official reply, which was published in the Fiji “Times”. It was as follows, and explains a good deal:— “When the Governor made his an nouncement he said the Ministry of Food
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would purchase copra at £lB per ton f.o.b. The significance of the term f.o.b. has been overlooked by many. Its local application is free on board the ex port vessel at a Fiji port, so it must be obvious to anyone that costs of handling, storage, shrinkage, insurance, bags, etc., must be deducted from this figure in order to arrive at the price which is paid for the copra as it arrives on Suva or Levuka wharf from the inter-island vessel.
“(b) Your correspondent makes an allowance for freight and bags for any one shipment of 25/- a ton. We figure Taveuni to Suva charges as follows; — Freight on gross weights .. 019 3 Marine and war risk insur ance on £l5 value .. .. 0 7 II Wastage on sacks, presum ing they are used three times .. .. .. 0 8 0 Total . . fl 14 41 which the planter has to deduct from the price he receives for his copra in Suva or Levuka in order to determine what he receives for it on his plantation beach.
“(c) The following may make the situation clearer to your correspondent.
The price paid f.o.b. the export vessel is £lB. The price paid to the planter is £l5/15/- and £l4/15/-. Assuming there are two tons Merchantable for every one ton of Plantation Grade, the average price becomes £l5/1/8. Subtract this from £lB and it leaves £2/18/4. This is made up by expenses such as payment to agents, shrinkage whilst in store awaiting overseas shipment, fire and war insurance, interest on the amount paid to the planter which is not recovered from the Ministry of Food until shipment is made, wastage on sacks used for ex porting the copra, and the remainder of some few shillings which goes to an Equalisation Pool. The planter receives for his copra £l5/15/- or £l4/15/-, accord ing to quality, and from this he must deduct his own shipping expenses, £l/14/4! referred to in (b).
“(d) Your correspondent contends that there is no need for a differential for quality. This is a matter on which opinions differ. It is probable that the differential of £1 at present offered is insufficient to induce the production of better copra. The widening of this dif ferential to £2 might possibly achieve the result provided it is established that this is desirable.”