With Unilever

Copra's Future

More Discussions in London With Unilever

The next steps in the discussions between the South Pacific copra producers and Unilever Limited, regarding the marketing of copra after the British Ministry of Food contract expires eight months hence, will be taken in London in June and July.

Representatives of Unilever then will meet representatives of the planters in the Terri tories of New Guinea, Solomons, Fiji, Western Samoa and Tonga.

The chief oils and fats buyer of Unilever, Mr. J. C. A. Faure, after interviewing the Papua and New Guinea Copra Marketing Board, and Solomon Islands representatives, in Port Moresby early in March (see March PIM ), flew to Fiji; and there, in the week beginning March 14. he had a series of interviews with representatives of the Governments and the coconut planters of Fiji, Tonga and Western Samoa.

Mr. Faure caught the P & O liner Himalaya for South Africa, from Sydney, late in March; and he in tended to fly to London from Africa

after three weeks there.

Mr. Faure was accompanied t o Fiji by Unilever’s Australian rep resentative, M r.

R. D. Rumbold ; and Mr. Rumbold later told PIM that his chief considered hi s visit to the South Pacific had been well worthwhile.

H i s discussions in all the places visited had been purely exploratory,

and no permanent or even pro visional arrangement had been sought in relation to marketing of copra. But a great deal of useful data had been given and received, and an atmosphere had been created in which later discussions might proceed to finality.

After the end of this year, South Pacific copra will have to be sold in the world market, under the usual competitive conditions.

Unilever hopes that it will be a sub stantial buyer of that copra. But it is apparent that, between now and then, conditions affecting assembly for shipment, grading, and trans portation will have to be agreed upon.

AT the present moment, it is ex pected that discussions will be resumed in London, probably late in June, between Unilever’s representatives and representatives of — Papua and New Guinea —The Chairman of the Copra Marketing Board (Mr. I. McDonald).

British Solomon Islands —Mr. E. J.

Thomsett and probably one other.

Fiji —Probably Mr. Martin (Secre tary of the Fiji Planters’ Union) who will be making a private visit to Europe about that time.

Tonga —Probably Prince Tugi, the Premier.

Western Samoa —One represent ative, not yet nominated.

Both Mr. Faure and Mr. Rumbold urged that someone in London should become the recognised rep resentative of the copra-producers in all the Territories named. They pointed out that conditions changed continually regarding stocks of copra on hand; the nature of the market’s demands (especially in re lation to quality and the establish ment of grades); extensions of the market and availability of shipping —and it was most important that the producers should have prompt and reliable advice on these matters,

"Unilever's Willingness

to Co-operate"

CHAIRMAN of the P-NG Copra Marketing Board, Mr. lan MacDonald, visiting Sydney in early April, told PIM that Mr.

Faure had not made any firm offer to buy.

However, he had given a firm indication that Unilever (Raw Materails) Ltd.—the buying organ isation for all Unilever interests— was “extremely interested” in buy ing the total output of all copra producing territories.

The organisation was prepared to negotiate either to buy all P-NG copra or on the basis of the Board’s reserving a certain percentage for selling on the open market.

Evident throughout the talks, said Mr. MacDonald, was Mr. Faure’s willingness to co-operate with the Board in every way possible. The organisation was prepared to negoti ate on almost any reasonable basis.

Members of both the P-NG and BSIP Boards were impressed with Mr. Faure’s wide knowledge of the oil seed market.

Mr. MacDonald said the Board’s policy will be to meet the full re quirements of the Australian market first. After that the surplus would be sold either to Unilever or on the open market.

Which ever it was to be would depend largely on results of dis cussions he is to have in London in May or June.

P-NG copra production for the year ending December 31, 1956, reached about 99,000 tons the highest figure yet achieved. Of this, approximately 29,000 tons were pur chased by Australian crushers, and 18,500 tons by Carpenters’ mills at Rabaul, whose oil output was sold to the UK under the MOF agree ment.

Balance of P-NG copra produc tion (about 50,000 tons) was also shipped to the UK under the Copra Agreement