Archives-August 1930

Pacific Trade Prospects

Fiji-Samoa-Tonga

A strong spirit of optimism

Written for The Pacific Islands

Monthly by Sir Maynard Hedstrom

I can speak, on trade developments and prospects, only of the three groups of which I am personally interested - Fiji, Samoa, and Tonga. Business in Fiji is depressed by the very low price of our primary products; but there are other factors which give hope for the future.

Though our sugar is selling at, or below cost of production, the Colonial Sugar Refining Company Ltd continues its policy of expansion and consolidation, and continues to expend money in improvements which are intended to effect permanent reduction in the cost of production. The policy of establishing peasant farmers as growers of sugar is working out very successfully, so that when the pendulum swings and world production and consumption becomes more balanced.

the Colonial Sugar Refining Co. Ltd. Will be in an excellent position to take advantage of the improvement in market conditions. The copra producer, also, is having a rather “thin time” and, in the case of the small man, the selling price is almost below the cost of production. On the other hand, the output of the Colony is steadily increasing - partly owing to the successful work of the entomologists of the Coconut Committee. Producers will have to study economy during the present period of depressed prices and, when the market recovers, they will benefit substantially by the increased production per acre.

Owing to floods, last December, banana

shipments have been greatly reduced; but that is a temporary condition, and shipments will be back to normal about the end of the year.

Buffer and Pineapples Our little dairy factories are fully supplying local requirements, and we are exporting regularly to Honolulu and Canada.

The shareholders in the two small pineapple factories have confidence in the ultimate success of that industry. Probably, by January next, the Hawaiian Pineapple Company Ltd will have come to a decision as to whether they will commence operations on a commercial scale on the land over which they hold options. They have studied the proposition very carefully and, if they decide to establish themselves ion Fiji, there can be little doubt that the venture will be successful.

Our aim here is to get greater variety in our products, so that we may not be entirely dependent upon one or two lines, but build our prosperity on a broader basis. ■