Up— And Up!

Cocoa Prices Still Rising

IT was reported in New York early in June that there was unlikely to be any early increase in the production of cocoa in West Africa, even though the disease which has caused recent damage may be over come.

The reason given was that the W Africa cocoa cartel had pre vented native growers from deriving any benefit from the big price in creases in recent times. Growers 'vere receiving only seven cents per pound, a price that gave them no incentive to increase production.

Other points from the New York report: Brazil, which usually produced about 17 per cent, of the world’s cocoa (West Africa normally pro duced half) has a good crop com ng on, but this is unlikely to affect the price or the acute shortage.

Consumer resistance to the high prices is not very evident in the -need States or Europe. US sales dropped only 3 per cent, in the first quarter of 1954 compared with last year and in Europe they have actually increased.

However, there is considerable research going on in the States to produce a cheap cocoa substitute

and some success has been achieved.

Samoan Price Drops

After it had reached the record price of £5OO Samoan (equivalent to Stg.) per ton FOB Apia for first grade late May—at which figure a small parcel was sold to New Zealand buyers—the Samoan cocoa

market receded and quotations at mid-June were at £460-£470 Samoan per ton.

Although fair quantities are still being harvested, the current crop is far below expectations because of adverse weather conditions early m the year. (Next Page)

New Guinea At £590!

Overseas buying, mostly Con tinental with perhaps a little English, has sent the price of New Guinea cocoa up again. The price quoted in Sydney on July 2 was EAS9O per ton, another £3O rise in a, month.

Local chocolate manufacturers were not competing in the market at this price. Quantities available ivere not big, but they were snapped ip for overseas buyers who are no longer able to get immediate de liveries of African beans, the crops :rom there all having been sold late May.

Some New Guinea planters are oelieved to be sending their beans direct to the Continent from Rabaul.

The price being quoted overseas for African beans, forward delivery ,n January-March, 1955, is £475 Stg.

Der ton. It therefore appears that :here will not be any fall in the price of NG beans for some time.

One big Sydney importer received bis biggest single consignment of Slew Guinea cocoa early in July— L5O bags. It was all from the Gazelle Peninsula.