Copra Planters
p. 13 · Read in the full issue
Restless
That British Contract Price
A CERTAIN amount of dissatisfaction with the British Ministry of Food contract —under which most of the South Pacific copra is now sold to Britain at a price equivalent to about £4B Sterling per ton—is becoming manifest through out the South Pacific Territories.
The focal point of dissatisfaction is the price. This was fixed about the end of 1948. Then, it was a reasonably good price—not the top of the market, but acceptable, because it had behind it a nine years’ guarantee.
But, in 1949, the British Socialist Gov ernment de-valued the £ Sterling in re lation to gold and the United States Dol lar, by about 30 per cent. —and this, of course, threw the copra price completely out of gear, in relation to world values.
Copra is a commodity in demand in Dol lar as well as in Sterling areas.
The effect of this is seen to-day in the fact that, while Britain is paying £4B Sterling for copra, Dollar buyers are offer ing over 180 Dollars per long ton—which is equal to over £6O Sterling, and £BO Australian.
South Pacific copra growers, who were happy enough about the British contract prior to the devaluation, are now in clined to argue that they have been tricked.
Ceylon—an important producer of high quality copra—broke away from the British contract at the end of 1949. and now is selling in the free market. It was reported in the “Crown Colonist” of April that the British Territory of Seychelles Islands, also has broken away from the British contract as from January, 1950, and is selling its copra to Denmark at £B5 per ton, GIF, as against the 1949 price of £52/10/-, FOB.
An important statement, relating to the Australian-New Guinea copra market, was made by the Australian Minister for Territories in his review of Papua-New Guinea affairs, published elsewhere in this issue. • New Guinea producers will not be happy about that statement. Already there is current a report that the so called contract with the British Ministry of Pood should be produced for investiga tion by representatives of the planters.