Copra Price

When

Milled In Fiji

A LARGE and important proportion of Fiji’s production of copra is with held from direct export and is dealt with by the copra-crushers in Fiji, which now constitute a valuable industry. In stead of sending away all raw copra, the Colony exports an increasing quantity of coconut oil and coconut meal.

This, in turn, created a new problem for the Colony. Most of Fiji’s copra goes overseas to the British Ministry of Food, at a price arranged last year under a nine-years’ guarantee. The issue arose, as to whether the local copra mills should receive copra from the Fiji pool at rates which are less than are paid for the copra that is being shipped abroad.

The argument developed in the Manage ment Committee of the Copra Board be tween Mr. J. M. Hedstrom, representing the direct-shipment interests, and Mr. W.

G. Johnson who, as managing director of W. R. Carpenter and Co. Ltd., represents the copra-milling interests; and the point was referred to the Copra Board.

The Board, on June 28, by 8 votes to one (Mr. Hedstrom) upheld the Manage ment Committee’s decision that the copra mills should get copra at a reduced rate, provided that the price represented the same nett return to growers.

The original decision by the Committee (challenged by Mr. Hedstrom) was that the price paid by crushers should be ad justed, so that copra for local milling should not cost the local crushers more than the equivalent quality of copra, un der equivalent circumstances, would cost United Kingdom crushers: but that, at the same time, the price paid by Fiji crushers must not yield a lesser return to producers than producers would re ceive if their copra were shipped as copra to the Ministry of Food.

The Management Committee decided that when copra was delivered to crushers in Suva direct from local vessels’ slings, £3/11/- a ton should be allowed off the Ministry of Food’s f.o.b. price. This total of £3/11/- was made up of such charges as cartage and labour from wharf to store and store to wharf, weighing in and out, storage and supervision, tipping, re turning empty sacks, interest on Purchase money, insurance, Port and Customs Ser vice Tax, wharfage and shrinkage.

All these charges would be payable by the Board in respect of copra ultimately shipped to the Ministry of Food, as copra —but they were not incurred if such copra was taken by the local crushers im mediately on arrival at Suva.

In the case of copra taken by local crushers from the stores of the Board’s agents, at some time between the copra’s arrival in Suva and the time of an over seas shipment of copra, the rebate to local crushers is £l/15/7 a ton. This represents a sharing of charges between the Board’s agents and the crushers.

Mr. Hedstrom, opposing the new ar rangement, contended that the Board should charge local crushers, for copra sold at any stage, the full f.o.b. price charged to the Ministry of Food, without any rebate, allowance or reduction.