TRADE IN PACIFIC ISLANDS

Hokitika Guardian, 5 January 1931, Page 7

TRADE IN PACIFIC ISLANDS

FACING A CRISIS. BANANASTO THE RESCUE

WELLINGTON, December 31. From the boom prices of £SO a toil for copra down to present London quotations of £l2 to £ls is a long drop, and the South Pacific islands in which New Zealand is so much interested are facing a serious economic crisis. Life for the natives of Fiji, Tonga and Samoa is so simple a problem in respect to housing and food that there will never be starvation or unemployment, but the lack of a sustained national income is embarrassing to the various governments, some of which rely on an export tax from the copra, and are finding it difficult to balance their budgets. Fiji and Tonga anticipate a call on their modest reserves this year, while New Zealand will continue to be the benevolent relative to Samoa, doubtless to the tune of the usual £70.000 per annum. A low price for copra discourages native production, for the work of preparing a ton is by no means light, while £25 in London means less than £lO on the beach. There is a general adaptation to the changed conditions, and the main result is likely to be seek ill n tremendously increased banana supply for New Zealand. Fiji, Samoa and Tonga are all looking to this market for help in times of economic stress, There is a well-established business in bananas from Fiji, and a growing trade in pineapples. What Fiji desires is to see the pine-apple canning industry well established, and there is no doubt that success in the factory will lead to almost unlimited development, as the demand already visible for canned fruit is more than existing plants—operating and planned—could meet. It is stated that the Fiji fruit is superior in flavour to that of Singapore, and it will no doubt be welcomed in New Zealand. TONGA’S NEW VENTURE.

Depending almost entirely on its copra production, the little island kingdom of Tonga feels the depression more severly than its neighbours with varied production. The Government has for some time stimulated its people to plant bananas. The handicap has been lack of direct shipment to the market. The best existing steamer service involves a long trip towards the Equator for a call at Samoa, tiien the return journey via Suva, which makes conditions impossible for the Tongan fruit. However, the Government has a promise of direct steamer services to New Zealand when the monthly banana production reaches six thousand cases, and this is likely to be achieved at an early date. Thus another competitor for New Zealand business soon will enter the lists against Rnratonga, Samoa and Fiji. SAMOA’S VARIED RESOURCES. Of all the South Pacific countries, Western Samoa appears best equipped to meet the changed economic conditions. The adaptation process is rapidly proceeding. On the vast Reparations Estates, rubber—quite unprofitable and likely to be so for years —is being drastically cut out, and where the land is suitable for cocoa, this valuable tree is being planted. The area available for successful cocoa growing is somewhat limited, as elevated land is needed. Most of the best cocoa lands are included in the Reparations Estates, where 1200 acres are being cultivated, and more is being planted under the direction of an experienced European manager, formerly engaged on Malayan plantations. Cocoa from these estates brings a price on the London market close to that of the highest quality product in the world, that of Java. It has to be prepared with skill, for the beans, •following extraction from tlie pods, must be fermented prior to mechanical washing and grading in three qualities. New Zealand manufacturers of cocoa and confectionery have found out the value of the Samoan product, and they use large quantities. Shipments to New York fetched the top prices at recent sales. When production is fully organised the estates will market 31)0 tons of cocoa beans annually, and at the current low quotation of £55 to £6O per ton, there is a profit in the business though a higher price is being paid for labour in Samoa than in other producing countries. Copra production continues, despite the low price, and as a good side-line, cattle are run in the plantations, keep ing down the weeds. The carrying capacity of cocoanut plantations for cattle is actually in excess of that of Taranaki land, though iijs fattening capacity is lower. Good stock is being constantly imported to improve the herds.

A minimum price of os per case is guaranteed the Samoans for Tjanans, and the Administration is extending its scope in this respect. The inucncritieised export tax of 2s 6d per case on bananas is part of an effort to encourage producers in the more remote sections of the islands to ship regularly, as they will get their minimum of os per case regardless of the cost of transport.