Pacific planters
pp. 121-122 · Read in the full issue
Copra downturn worries Pacific planters
The copra market is sick. It is causing concern throughout the Pacific, and particularly in the territories where it is the No. 1 industry.
The state of the market stems from the longshoremen’s strike along the west coast of the United States.
Unable to get their copra into the US, unless, with many difficulties, via Vancouver or Mexican ports, some big producers and processors such as the Philippines, are diverting HeJ?nn,S IrOPe ’ 3 8 Facing a buyers’ market, and where orderly marketing or stabilisation schemes do not exist, growers in a number of areas are in a spot. Even where there are boards, prices have been reduced. Outside the Philippines, major copra producers in the Pacific are Papua New Guinea, Fiji and the BSIP.
This is how prices have nosedived: PNG’s tentative rates from September 1, $7 lower, and altogether down $l6 since August; Fiji, $18.75; BSIP, $2O (in two instalments, each of $10); Cook Islands, $10.72 to $10.75 (but still at lucrative levels of $143.83 to $147.48); Western Samoa, $l3 to $l4. Prices in the GEIC and Tonga fell some time ago.
The sharp decline had shock wave effects. Some of the bigger estates in
Fiji have been forced to retrench labour.
One big estate owner said he needed $BO a ton to support the work f orce . Qn top of that he needed another $l3 a ton to get the copra to Suva, an( j then he had to pay $1.50 for the return of copra sacks. jhat did not leave much change out of lo o, and not all producers are getting the top price of $lO2. j late September, the Fiji Govern ment was considering introducing a rowers su *’ s ‘^ y t 0 ass ' st copra gr e * Th. e Prime Minister, Ratu Sir Kamisese Mara, said the government was not enthusiastic about stabihsa ti°n funds. The method had not been a success in the sugar industry. The best way of helping the growers seemed to be a subsidy on the transport of freight to and from the islands. The government was waiting to see future developments, In PNG, the Copra Board is keep ing a close eye on prices. If necessary, it will recommend a payout from stabilisation funds. The board thinks bounty payments should be con sidered if prices remain at an ab normally low level for a period longer than three months, Western Samoa production, ironic
ally, has risen spectacularly. Provided the growers can get rid of their copra they should be no worse off at the lower prices, at least for the time being. Production for 1971 is expected to be 15,000 to 16,000 tons, compared with only 9,000 tons in 1971.
Copra is the main export of the BSIP, and prices are at their lowest level since 1963. The protectorate, in 1970, exported 24,000 tons. Under a development plan, expenditure of $700,000 in subsidies is proposed for the next three years to boost produc tion.
Several years ago a representative of a Sydney copra buyer forecast, when prices were at a very high level, “there will never be cheap copra again”. Such a statement would bring a wry smile to many copra producers today.
Schweppesmanship
in the South Seas
Schweppes (Aust.) Ltd., the big Australian soft drink manufacturer, is extending rapidly in the South Pacific. The link with Innes Tartan (Auckland) through the NZ Schwep pes company in the Lami, Fiji, plant, has been followed with two fran chise arrangements, one in Noumea and the second in Port Moresby.
Schweppes consider there is a growing market for their products in both territories, and beyond. It is now seeking franchise bottlers in the New Hebrides, the BSIP and towns in New Guinea.
According to Mr. Graham Smith, Schweppes’ franchise manager, New Caledonia has the biggest market for canned drinks in relation to the size of population that he has seen.
Speaking about Port Moresby, he says consumption there is “tremen dous”. The Papuans are extremely quality conscious. It is remarkable now to see Papuans specifying the brand they want, whereas two years ago they asked for “lolly water”.
The franchise in Noumea is held by Grande Brasserie Caledonienne. which brews beer and makes soft drinks. In Port Moresby a relatively new company, Sparkola Bottling Co., of which Mr. Les. Hui is the pro prietor, makes Schweppes’ drinks.
According to Mr. Smith it will be many years before Noumea gets a canning line—because the popula tion is not big enough. Port Moresby, on the other hand, could have a canning line, owned by a consortium of companies, in about 18 months.
Burns Philp is likely to be one of the companies in this consortium.