Copra Prices Will

And What of Interchangeability?

Level Out

• Although few of the experts have committed themselves as yet, there are indications that the price of copra, which has been main ned at boom level for the best part of 12 months, will adjust itself the next six.

THE world oil and fat supply position was admirably summed up by Mr. J. C. A. Faure, of Unilever, in his address to the conss of the International Associa tion of Seed Crushers, held in nnes, France in early June, when he said that he foresaw a period “adequate but not excessive supplies”.

According to Mr. Faure’s forecast 1959, total world export of all ble oils and fats will be close the record 7½ million metric tons 1957 —and 350,000 tons more than 1958.

However, although overall ex-

ports will be up, demand from stern Europe will also be in ised considerably so that supply demand will just about balance, ut from the copra producers’ point of view, here are several other factors to be taken into consideration: The 350,000 tons increase over 5 exports is all in alternative —soya, cottonseed, groundnut, eed, tallow and lard; and it is scted that 1959 will end showing coconut oil exports to have been 000 tons less than for the same period in 1958; and that whale oil be 10,000 tons down, Nonetheless, the copra boom prices have continued long enough to ullate consumers to make the change to alternative oils and what Faure had to say on this socalled “interchangeability” is in

sting:

always takes time for a substitute to establish itself. Manufacturers are loath to change formulas and if a commodity is likely to be in short supply for only limited period, they would rather follow market than change formulae. When shortage threatens to be of long dura tion, a change in formulae becomes un able. s old English proverb “Necessity is the mother of invention” has certainly into its own, and as a result of the shortage the readiness to interchange >rt notice has been greatly stimulated. fact should ultimately result in ier markets and eliminate some fluctuations. It should help com ics in excessive supply and ease the pressure on those in short supply. ring June there was a consider able adjustment in local prices paid Pacific producing centres. Dur ing that month, the price in Suva lAD grade fell from £F82/7/6

on June 1 to £F76/2/6 on the last day of the month.

In Papua-New Guinea, the price planters will ultimately get from the Copra Marketing Board is based on the London average for Philipies copra in June - which was £Stg.91/2/6—a fall of £Stg.8/15/from the May average. Meantime, the tentative price in P-NG remains the same: £A55 per ton delivered to Board's warehouses.

During June, however, a price adjustment of £20 per ton was made to planters in respect of their de liveries to the Board during January- March this year. It is anticipated

that a similar adjustment will be made in respect of April-June deliveries, payments being made by August 15.

It is expected that adjustment will be made also to the price paid in BSIP, which last month was at a peak of £A80 per ton.

Another factor enters Papua- New Guinea copra production from July 1. It seems likely now that income tax will be introduced from that date (in spite of the best efforts of the Taxpayers’ Association to de lay matters), and at the same time, the collection of export duty on copra will cease.