N. Guinea Coffee Growers To Seek Tariff Protection

Seek Tariff Protection

By a Staff Reporter

New Guinea coffee planters are planning to seek Tariff Board protection so that the infant New Guinea industry can remain alive.

THERE has been increasing agita tion among the planters for this kind of protection—a protec tion which has stabilised the Papua rubber industry in recent years— but a definite move is now likely following developments at this year’s coffee conference between users and growers, held in Sydney on March 22, The New Guinea growers emerged from the conference with a caning, after having been shown the hard facts of life. It was the old story again of supply and demand.

For the first time since voluntary price agreement started three years ago, the buyers in March refused to take New Guinea’s entire coffee production, and on the lower grades they refused to agree to a price at all. The buyers indicated that they could get cheaper coffee from over seas.

Estimated NG coffee production for 1961 was given at 2,800 tons.

The buyers agreed to accept 2,000 tons of this.

They agreed to pay 4/3 lb for A grade, 4/- for B grade and 3/9 for X grade (which is clean, un graded coffee).

They would not give a price for grades lower than X.

The growers had asked 4/3 for A grade, 4/- for B, and 3/11 for X.

Last year the conference had agreed to take the full estimated production of 1,500 tons (in fact, there were 1,750 tons) at a general minimum price of 4/- lb. Some of the users last year, however, did not honour their promises, although some other users took more than their quota.

Delegates

Representatives who attended the Con ference were; Department of Territories C. R. Lambert, CBE (chairman); W.

Scott; I. Cartledge.

Papua and New Guinea Administration W. L. Conroy, Chief of Division of Extension and Marketing, Department of Agriculture, Port Moresby.

Growers I. F. G. Downs and J. L. Leahy, presi dent and vice-president respectively of the Highland Farmers and Settlers’ Assn., Goroka, NG; R. Gibbes; F. M. Hewitt, MLC; J. M. Ireland: A. S. Norquay, sec retary, National Farmers’ Union of Australia.

Users J. Andronicus, Andronicus Bros. Pty.

Ltd., Sydney: T. F. Bagot and R. Etty, Bushells Pty. Ltd., Sydney: J. Dimattina, Mocopan Pood Processing Co., Melbourne; V. J. Edwards, Robert Timms Pty. Ltd , Melbourne; B. M. Hall, E. W. Bolin Ltd., Adelaide: W. S. Hoy, Hoy’s T. and C.

Products, Sydney; H. H. Leschen, chair man, Australian Tea and Coffee Traders’

Assn.. Melbourne: K. I. McClelland. E.

H. Harris and Co. Pty. Ltd., Sydney; C. C. Matthes, Quist’s Danish Coffee Shop, Melbourne: G. L. Otick, Henry Berry and Co. Ltd., Melbourne; Dr. G. D. Repin, Repin’s Pty. Ltd., Sydney; R. A. Wilson and V. P. Calnan, The Nestle Company (Australia) Ltd., Sydney. (Apologies were received from Griffiths Bros. Ltd., of Melbourne, and P. A.

Southwick & Son Pty. Ltd., Brisbane.) Australian Department of Trade W. B. Keough.

Producers 'Unhappy"

Following the conference, Mr.

Downs said that the New Guinea producers were very “unhappy”.

He said apparently the import of soluble instant coffee was making inroads into the market, to the detriment of New Guinea’s green beans.

Six hundred tons of American in stant coffee had arrived in Aus tralia in cans in the last six months.

Six hundred tons of instant coffee represented 2,400 tons of beans, as the ratio of beans to instant coffee was four to one.

In addition, Brazilian coffee beans had been dumped in Australia at 1/11S a lb, duty paid, he said.

It was quite evident that a number of people now in the coffee trade were not represented at the conference, and these people could make any arrangements they wanted, said Mr. Downs.

“That there are those in the in dustry who are unrepresented at the conference is a fact of growing importance, and it is one of the reasons why this year we have met resistance for the first time,” Mr.

Downs said.

Must All Agree

“Manufacturers can get cheaper coffee from overseas, and I think that the days of voluntary agree ment are over. The time has come for the New Guinea industry to go to the Tariff Board and ask for pro tection.

(Continued on p. 144)

“There is no use some people agreeing and others not. Every body has to be concerned.”

Mr. Downs probably could have stated the growers’ position in much stronger terms than he did.

There are, of course, two sides to the question, but an indication of how the New Guinea growers have been viewing it these last few months is given in an editorial in the Highlands Quarterly Bulletin , which is published by the Highlands Farmers and Settlers’ Association, of which Mr. Downs is president.

The editorial, published before the March conference, pointed out that New Guinea natives had to be given a share in their country’s re sources if they were to “emerge”.

But a common marketing front, involving both European and native growers, was in danger because of the failure of Australian coffee users to purchase New Guinea coffee, the Bulletin said.

Natives Destroying Trees Australians had encouraged the native growers to become producers and had included them in the marketing agreements, yet in recent weeks several discouraged native small holders with unpurchased coffee in Australia, and hundreds more unable to sell locally, had been talking grimly of destroying their coffee trees and going back to sub sistence agriculture.

Some had actually cut down their trees.

The editorial added; "The cause of this dangerous situation rests mainly upon the failure of Australian coffee users to honour their obligations to purchase the 1960 coffee crop by a series of individual agreements made in Canberra in March, 1960.

"Not only have there been a num ber of individual failures to meet the quotas indicated at that time, but users as a whole, contrary to the incorrect report circulated by them, have failed to take up the total tonnage.

“Even had the total tonnage been taken up, we can see no ethical ex cuse for those who have not kept their promises to hide behind the fact that at least one user has pur chased more than he estimated as his needs.

Credit Squeeze

“Agents have reacted to the credit squeeze in the face of large unsold stocks by being unable to make further advances.

“This, in turn, has limited the purchasing power of Australians who normally buy the native parch ment crop.

"And so, at the end of the line, high in the mountains of Gena, above Kerowagi, you have those who have cut down coffee trees wich axes.

“It is as simple as that.

“While some Australians whittle at Australia’s political influence in New Guinea, you have other Aus tralians happy to destroy the economic ties which may soon be the only link between our two countries.

“While Metropolitan powers in Europe and America see to it that the dependent countries of Africa and South America have their traditional markets for coffee main tained, you have a virtual abandon ment of New Guinea coffee by Aus tralians eager to import overseas undergrade junk, without regard for Australia’s foreign exchange.

“The days of effortless exploita tion of tropical crops are gone.

“We are in the midst of cut throat international competition.

Tropical countries which can dump poor quality coffee at under-cost because of government purchase at guaranteed prices are a threat to our future no less than those who buy from them.

"Hostile Situation"

“Australian consumption of the type and class of coffee which we produce in New Guinea is currently more than twice our output.

“The price we ask Australian buyers to pay for this class of coffee is manifestly less than the value put upon it by overseas buyers.

“We face a hostile situation in

Australia unrelated to world prices.

“We, as well as wool growers wheat growers and dairy farmers are producing a product important to the Australian economy.

“The Government has already stated that it regards the primary producers of this Territory as de serving of the same help and assist ance which primary producers on the mainland enjoy.

“Government action is now needed.” (For a survey of the question, see 'Commentary", p. 25.)