New MOF Copra Price Means

Million Pounds for S. Pacific

AFTER strong representations had been made to the British Ministry of Food and certain high personages of the British Government, by representatives of the Governments of Australia, New Zealand, Fiji and the British Wes tern Pacific Islands, it was an nounced on February 20 that the copra prices which had ruled i- Fapua-New Guinea, Solomon Is lands, Gilbert and Ellice Islands, Fiji, Tonga, Western Samoa and the Cook Islands, in 1952 would be the official MOF price for 1953.

As explained in the PIM in recent months, the British MOF planned to reduce the 1952 price for 1953 by 10 per cent, (the full amount allowed under the 9-years con tract). But the South Pacific Governments challenged the data upon which the MOF officials tried to act, and eventually the latter’s plan was set aside.

The world price was down below ;he MOF price during the middle nonths of 1952; but the world igure was back, and well above the MOF price, at the end of the year, ind in January and February.

The London quotation for Straits *;MS on February 20 was £B6 Stg. if, European ports, which is about :7 higher than the £65 Stg. fob, >aid for S. Pacific Copra.

The retention of the 1952 price in 953 will be worth the better part if £1,000,000 Australian to the South ’acific British and Commonwealth territories. But, if the copra mar et’s tendency in the future is own ward, it will mean much more han that. The price for any ene ear cannot fall more than 10 per ent. of the price in the preceding ear.

The announcements in the vari us centres have been as follows:

Pafua-New Guinea—To Be

55 Stg per ton, fob, Port Moresby— hich gives the producers the same rice as in 1952. It was pointed out tncially that a reduction of 10 per mt. in price, on an estimated pro uction of 85,000 tons, would have ust nt a IOSS in 1953 ° f £6B °’ ooo FIJI—MOF price to be £65 tg. per ton, fob. Prices to pro acers, at Suva and Levuka: Plan- Ltmn grade, £656/5/6 Fijian; FMS le ! ser Sidings, from >6/15/- down to £62/15/-.

W. SAMOA—MOF price, £65 Stg 5r ton, fob. Rates to producers, the ime as 1952.

SOLOMONS—The previous an ouncement of a 10 per cent, cut is ithdrawn, and prices now based i the 1952 MOF rate of £65 Stg !r ton , fob. Present rates to pro

ducers are to be Honiara, £62/3/4 Aust.; Tulagi and Yandina, £63/3/4 Gizo, £62/18/4. Various adjustments in handling, etc., have brought about a reduction of 11/8 per ton <pn the 1952 price; and a further ad justment is forecast owing to MOF insistence on FMS instead of smoke-dried.

P-NG Copra on Free

Market

VfTHEN it was found recently that ?▼ 5,500 tons of Papua-New Guinea copra was not wanted by the British Ministry of Food, under its contract, the P-NG Copra Marketing Board sold it to Sweden at £74 Stg. per ton f.o.b. (about equal to the current European price of £B6 c.i.f.), As the MOF contract price is £65 Stg, per ton f.0.b., this means an improved return on the 5,500 tons of no less than £60,000 Aust.

It is a good illustration for South Pacific planters of the difference

between the MOF price (guaranteed for nine years) and the world price, subject to constant fluctua tion. For the greater part of the period since the introduction of the MOF contract, the world price has been at least that much better than the MOF price.

Stabilisation Fund

IT was announced during the month that the New Guinea Planters Association now is in structing counsel regarding steps to be taken to compel the Austra lian Government to distribute, to copra producers, the Stabilisation Fund, built up over the past six years by compulsory deductions from amounts due to producers, and believed now to be over £1,500,000.