Price Of Copra—And Of

Other Commodities

Letter to the Editor IT is reported in the September “PIM,” just to hand here, that the market price of Philippines copra has fallen sharply and that this in turn may pull down the copra price in sterling countries —which was phenomenally high, anyway.

Elsewhere, one reaTis, “Plea for Lower Prices I do feel that it would be better for all if the copra price came down to £2O-£3O per ton. Certain countries seem to want high prices, but I think, from the point of view of Europe, it is better to have a reasonable level of prices, not too high.

If we here examine the position, we can but come to the conclusion that prices are too high but not the copra price.

In this group (French Oceania) copra is 6,500 francs (£4OA) a ton; and coconut oil, from the local mill, is 40 francs a litre that is equal to 40,000 francs (£2SOA) a ton. As it requires roughly two tons of copra (13,000 francs) for one ton of oil, there is a difference between the price in copra and the price in oil of 27,000 francs, besides one ton of oil cake. Evidently, it is not the copra price that is too high, but the profit.

Let us examine another case. In an advertisement in a Wellington newspaper (New Zealand), coconut is quoted at 1/1 per pound, which .equals £244 per ton, for what on the plantation costs £4O per ton.

Now reverse the process, and examine the cost of imported goods. Butter is 4/- per pound, or £244 per ton. A bushel of wheat costs 180 francs (£l/2/6); a pair of dungaree shorts, 150 francs (nearly £1), one pound of raisins 20 francs (2/6), a yard of unbleached calico. 5/-. These prices are a reflection of the prices of coconut, which is coloured by what the consumer pays (£244 per ton for desic cated coconut, and £250 per ton for oil).

Truly, prices are too high but not

the farmer’s produce, at the production end. This is “free enterprise” with a vengeance!

I am> e tc.,

R. S.

judatea. 1/11/47.