Business and Development

Experts Say Coconuts Can Be

Milked For Another $100 Mil

The coconut industry, with outlets eight of the world’s major mar jts, could earn at least SUSIOO illion a year more by 1980. This pire, based on 1971 prices, is what Lperts came up with in a United ations survey made at the request r the governments of 10 countries eluding Papua New Guinea, Fiji, onga, the GEIC, the Solomons, Western Samoa and the Philippines.

Coconut oil consumption could be creased by up to 250,000 tons— )out 40 per cent —for edible use by >BO, and by about 130,000 tons (a larter) for inedible use. Desiccated )conut use could rise by about a ird (35,000 tons), and copra cake id meal consumption by more than K),000 tons, if supplies were avail )le. The prospects for shell char mi were less clear, with growth rgely dependent on Japan to offset jssible losses elsewhere.

To realise opportunities, the edible le of the market would depend on >sitive action by the producers to welop their markets. On the in- Lible side, virtually all the growth as “natural”, inherent in the ex acted development of the “end-uses” arket.

Strictly on the marketing side of >conut selling—which was in the mds of individual countries and oducing enterprises—some specific eas of possible action were clear: • Concluding long-term supply with major importers to otect the market and ensure buyers : supplies at relatively stable prices; • The development of the market r the methyl esters of coconut oil, be sold to fatty alcohol acid and kylolamide producers (or direct to itergent companies) instead of ude oil; • The development (as by Monte :gro in the Philippines) of carbon :tivation on a contract basis for irbon activators in the importing amtries. (This is only a possibility; >conut-activated carbon is not arketable on its own to end-users.) The prospects for sales of fatty

acids, fatty alcohols and glycerine to the eight countries surveyed appeared to be virtually nil. In the case of the acids and alcohols, that was because there was almost no market in bulk products to end-users, while processors were not interested in buying semi-finished material in that form.

The survey, dealing with market development and strategy, said an opportunity clearly existed to stimulate consumption in the eight markets of edible coconut oil and copra cake by joint promotional activity within the framework of the Asian Coconut Community. • An attempt had to be made to stabilise prices, which could include collection and dissemination of better information on supply conditions, long-term contracts with key buyers, and by producer country governments adopting clear, consistent policies on export supplies; • As in the long-term increased

supplies would be required, new plantings should start immediately as a guarantee to buyers of continued supply. In the short-term, supply conditions could be improved by better handling in the producing countries; • Effective grading standards and better quality control would consider ably increase buyers’ confidence and the return to the producers; • Continued development of new coconut products was essential to the strength of the market. Producing countries should concentrate on new uses, either entirely new as in the case of coconut protein products, or new to export trade, as in the case of coconut milk or water products.

A coconut promotion board could be established by the Asian Coconut Community to control, co-ordinate and direct promotional and market development programmes. In selected end-user markets, local bodies should be established, in co-ordination with

>cal users, to plan and execute larket development programmes, hose local bodies should appoint rofessional advisers to carry out the etailed work of public relations, ivertising and market research.

The activities of the coconut pro lotion board could be financed by a ivy on coconut exports by members f the Asian Coconut Community, hat would be about half of one sr cent of the fob value provided utline programmes suggested in the irvey were adopted in full.

The promotional budgets suggested >talled less than SUSI million in the rst year, rising to about SUS 3 lillion in the fifth year. In addition > the specific promotional budgets, dministrative and other expenses ere likely to be about $U5750,000.

Without that expenditure the poten al growth might be about SUS3O lillion, compared with the SUSIOO lillion envisaged. Even then the rospects for SUS3O million growth ould be uncertain.

down

m Fiji money

The Fiji Government has clamped own on the movement of money out f Fiji in an effort to conserve bout $2 million in overseas funds, he controls are aimed at cutting the nnual amount spent by Fiji people n overseas trips, education, invest lent, gifts and allowances from $8 lillion to S 6 million. These are the lain measures: • A resident migrating to another ountry may take no more than 30,000 on departure. The remainder lay be withdrawn in the next three ears after departure; • A limit of 52,000 for an over ;as holiday, but the amount may be ccumulated for two years; • Limit of $3OO on cash gifts previously $500); • Remittances to overseas de endants now $l,OOO a year (pre iously $2,000), but $2,000 may be Dent in cases of special need; • Overseas education allowances emain at $4,000, but more support ig documents will be needed; • Purchase of shares in foreign ompanies banned; • A resident may not invest in a ouse overseas, unless he plans to ve in it permanently.

Spending on overseas business trips dll not be curtailed, but will come nder tighter official scrutiny.

The Finance Minister, Mr Charles tinson, said there had been a worry ig fall in foreign reserves and a rise i import costs. It was not a very appy situation for a developing ountry.

Islands agree

on Air Pacific

Civil aviation ministers and repre sentatives from 11 countries including Fiji have agreed that additional capi tal should be made available to Air Pacific to ensure “a firm base for continuing and viable operations to provide reliable services”. The agree ment came at a four-day meeting which ended in Suva on August 22.

Most ministers gave assurances that the necessary money would be forth coming. They also considered pro posals for restructuring the airline to increase the degree of ownership by Island governments, including Fiji, said a joint communique.

The meeting decided a consultative body should be set up to achieve broad policies on regional co-opera tion in civil aviation in the best interests of the island nations; explore practical ways and means of co operation between Island airlines operating in the region and consider means of restructuring air services either in single airline concept or to allow for the varying interests of the Island nations.

After the meeting Fiji’s Minister for Communications, Works and Tourism, Ratu Sir Penaia Ganilau, who was chairman, said the future of Air Pacific “had been discussed at some length”. A “satisfactory solu

tion” on the airline’s future seemed imminent.

Ratu Sir Penaia said the composi tion of the consultative body pro posed at the meeting would probably be decided at another high-level meet ing outside Fiji before the end of this year.

Delegates included President Ham mer Deßoburt, of Nauru and Prime j Minister Fiame Mataafa of Western Samoa and aviation ministers from!

Tonga, New Zealand and PNG with ; other ministers and delegates repre senting Australia, Britain, the Cookl Islands, BSIP, the GEIC and Mrl Mahe Tupouniua, Director of SPEC.!

At the Nukualofa meeting the pre-j vious week (see p 73) Island leaders! agreed on a long-term aim of having! a single Pacific airline instead of separate carriers based in Fiji, Tonga,!

Western Samoa and Nauru.

Fishing rights hold

up Fiji projects

A number of development projects along various coastlines in Fiji are held up while the legal position over customary Fijian fishing rights is examined. Developers want to extend a number of beach sites by reclama-j tion. However, this involves destroy ing mangrove swamps, reefs and; beaches from which Fijians living nearby have gathered seafood.

Several years ago a company which destroyed a mangrove area through reclamation agreed to pay thousands] of dollars compensation to the Fijians affected. This inspired other Fijians to seek compensation for projects elsewhere. There are now doubts about the legality of their claims, but the Lands Department is holding up the issue of foreshore leases.

A 'doctor' for Fiji

firm's parent

Construction activities in Fiji of Mainline Fiji Ltd will not be affected by the decision announced on August 19 to appoint a receiver for the parent company, the big Australian construe-j tion group, Mainline Corp Ltd.

A spokesman for the Fiji company made this clear in an announcement a few days after the Australian group had said it had requested its principle creditor, the ANZ Banking Group Ltd, to appoint Mr J. H.

Jamison as receiver and manager.

More tourists

tor Norfolk

Tourism continues to be the main stay of the Norfolk Island economy and the number of tourists continues to rise each year. In the year ended June 30, 1974, there were 14,708

iitors, compared with 12,476 in •73, and 11,054 in 1972.

The Administrator, Air-Commo >re E. T. Pickerd, addressing the st meeting of the seventh Island Duncil, said that in the current year, e bicentenary year, there was a •ong indication that the current ve\ of tourists would, at least, be aintained.

He told the council that the import 11 for 1973-74 was expected to be ore than $5 million. As the island ,d to rely increasingly on imports, was only natural that both the pub and private sectors had felt and fleeted the impact of price rises and Blation.

In 1973-74, revenue was expected exceed $1 million—final figures ;re not yet available. All the main urces of revenue, except company ;s, were above estimate. The main eeipts were: Customs, $313,000; imps, $169,600; company fees, 44,500; liquor profit, $121,000. The jmmonwealth Government grant is $120,000.

Expenditure for 1973-74 was esti ated at $829,700. There was some mmitted, but unspent, money from 73-74, which would need to be re ted for 1974-75. There were in sases in some of the major items expenditure, in particular educa »n, health and social welfare, areas lere there was little local control.

Air-Commodore Pickerd said that r 1974-75, revenue was estimated be $950,600, and expenditure 62,400.

iore in Pacific

ay packets

Pay packets became heavier in yeral parts of the Pacific in July d August. In Western Samoa, the vernment ordered a minimum rate $1.50 a day for all wage earners tside the public service.

Men working on the new Suva idi road in Fiji won a rise of 20c hour to 72c. But fellow workers iployed by other Fiji construction mpanies were on strike for higher y.

In Papua New Guinea, the salaries all national public servants receiv -1 not more than $7,015 a year, ;re lifted by $225 a year, subject variation when the Consumer Price dex figures for the June quarter e published. The Public Service >sociation has agreed that no hir er salary increases based on the st of living will apply before July 1975.

The minimum urban wage in ipua New Guinea was raised to $l5 week, and a hike in the rural wage is been granted. (See p 94.)

An Arabian

nights' dream?

King Taufa’ahau Tupou returned to Tonga in July from Saudi Arabia talking in terms of a million dollar project—carrying cement from Taiwan and South Korea to Saudi Arabia. Saudi Arabia imports two thirds of her cement from those countries.

He said Saudi Arabia had asked the Pacific Navigation Co, of Tonga, to submit estimates for the service and to say how regularly it could operate. Two-thirds of Saudi Arabia’s cement requirements could run into hundreds of thousands of tons. With an agreed rate of $lO to $l5 a ton, a million dollar project could result.

When all expenses were deducted the profit should be considerable.

The king said the present indica tions were that the activities of the Pacific Navigation Co would increase to a stage where opening of an office in London would be warranted.

The prime reason for his visit to Saudi Arabia was to ensure that Tonga would not be affected by any sudden oil shortage, by making ar rangements for larger Tongan ships in the class of bulk carriers to be refuelled in Arab ports. Negotiations, however, were not yet complete, as Tonga had not confirmed the size and type of bulk carrier it would use.

When it acquired its first carrier Tonga would make definite submis sions.

Saudi Arabia knew very little about Tonga. When it was known there that he was to make a visit, the Saudi Arabia authorities asked about Tonga at the office of the British High Commissioner, and read all that was possible. But they were mystified about Tonga’s wish to make contact, and also about what Tonga might need.

They thought that Tonga might be after a $lOO million grant, and were very surprised when the king told them that what he wanted was a

simple business negotiation for help,

or an assurance, over a continuous oil supply. He believed it was the first time Saudi Arabia had negoti ations with a small country like Tonga.

The king said it was hoped, while the Suez Canal was being cleared, to acquire the ships Tonga needed.

Once the canal was opened, Tonga would be able to go ahead and meet its obligations with its fleet. If plans for a bulk ore carrier and the car riage of cement to Saudi Arabia came to fruition it would mean that the centre of gravity for the activities of

the Tongan fleet had been transferred from the Pacific to the Indian and Atlantic Oceans.

Now Fiji has

a Woolworths store

The Carpenter group in Fiji engaged in a public relations exercise when it asked Mrs Grace Deoki to open its Woolworths store in Suva in July. Mrs Deoki, president of the Fiji National Council of Women, re ceived a table of groceries from the managing director of Carpenters Fiji Ltd, Mr Lyle Cupit, which, she said, she would hand over to the St Chris topher’s Home for Children.

The official opening was several months after the store opened its doors for business on December 1, 1973. It is a wholly-owned Carpenter operation with no connections with Woolworths chain stores in the USA, Australia or New Zealand, although it operates on similar lines. The US and the Australia-New Zealand Wool worths are also independent of each other.

Carpenters registered the name Fiji Woolworths in 1963. Mr Cupit said the group was considering opening more Woolworths stores in other

Princess Pilolevu, the only daughter of King Taufa'ahau Tupou, of Tonga, who will play a full and active role in the Tongan tourist industry as education and training officer of the Tonga Visitors' Bureau. One of her first tasks is to help a group from the United Nations, visiting Tonga in September, to run a three months hotel and travel agency training course. Legislation to create a tourist board to regulate, maintain and control the tourist industry in Tonga has been prepared. Under the legislation the board will control licensing of agents, hotels and tourist enterprises. The legislation is aimed at giving local people the chance to take part in all tourist enterprises and

developments.

parts of the country. The stores cater for middle to low income earners and specialise in quick, large-scale sales of goods householders need for every day use. Mr Cupit expects sales in the first year to realise more than $3 million.

Nauru enriching

its riches

The Nauru Phosphate Corporation is installing a calcination plant de signed to produce the highest quality phosphate in the world. It is being erected on the southern side of the drying plant. Calcination reduces the excess carbonate and organic matter in phosphate, which can then be con verted into clear phosphoric acid.

This premium grade phosphate is used to produce a number of in dustrial products and complex ferti lisers.

The plant was designed by West’s (A’asia) Ltd after tests on a scaled down pilot plant in Australia. A sub sidiary company, West’s Nauru Ltd, is erecting the plant. West’s Nauru has sub-contracted the steel erection work to Steel Mains Pty Ltd, which is also erecting a new one million gallon fresh water storage tank near the NPC Staff Club.

Killing the goose?

The Fiji tourist industry has been told to pull up its socks, or face hard times. Advocates for promotion of the industry throughout the 1950 s

told of the benefits Fiji would gain from the tourist industry. No doubt there have been many financial bene fits, but at a cost, Mr Raj Singh, from the Fiji Minis try of Tourism, told a recent meeting of the Fiji Visitors’ Bureau board that letters of complaint from visitors already filled two files, and a third file had been started. The FVB man ager for western Fiji, Mr Radike j Qereqeretabua, in his monthly report to the board, also listed a number of complaints.

He said three Nadi duty-free dealers did no good to the name of their town or to Fiji by their activi-j ties. These included brandishing wea-J pons and swearing at visitors.

Planters will feel

the squeeze

Lean times are ahead, say Papua; New Guinea’s planters and farmers as they contemplate future profits whittled down by the latest award of an $8 a week minimum wage for rural workers.

It was the second attempt by Min ister for National Development, Mr Gavera Rea, to create a new basic; figure for the rural workers. His first; wages board recommended a $6.40 minimum, a 50c rise on the previous] rate, but that wasn’t enough. He appointed a second board and its recommendation of a basic $8 has dismayed the primary producers.

Some planters are talking of fall ing sales, of unemployment and even plantations closing down. But they have failed to frighten the workers, who, according to one representa tive, would be happy to take over any plantation which closed.

Biggest wages bills will have to be footed by expatriate planters but some point out “localisation” is fast approaching and indigenous planta tion owners will find themselves saddled with a wages burden. The people of four villages in the Madang district now own Militat plantation which was recently handed over to them by the government under a scheme for “rural people to secure a more equitable share of wealth”.

But world prices for copra and cocoa are likely to remain high, the optimists say. There’s not the same hope for the tea, coffee and rubber planters.

Some planters, with fingers crossed, are hoping the industrial registrar will disallow the award, as he can do if he feels it is not in the national in terest. If he doesn’t, they say, primary food prices will shoot up.

Meanwhile, a minimum wages board is considering a new basic wage for urbanites.