Desiccated coconut

Title

Desiccated coconut

Creator

Hick, Howard R.

Language

English

Source

The American Chamber of Commerce Journal Volume XXV (Issue No.10) October 1949

Year

1949

Rights

In Copyright - Educational Use Permitted

Fulltext

450 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1949 Effects of European Currency Devaluation ON September 19, the British pound was devalued by 30-1/2% from $4.03 to $2.80, and sterling area countries immediately devalued their cur rencies correspondingly. The question at once arose as to how this might affect Philippines copra and oil which are sold in competition with sterling producers. The immediate effect was of course psychologically bearish, and prices started to decline. The decline was short-lived, however, and prices began to stabilize themselves at not very much be'.ow pre devaluation levels. But this is not a long-range an swer, and it will take time to determine the real end-result. A few points stand out. First, sterling area pro ducers can undersell Philippine producers in both American and European markets. But in the Ameri can market they must hurdle the extra processing tax of 2 cents per pound,—about $25 per short ton of co pra. If they want dollars badly enough to pass up more profitable European markets, they will do this, but $25 a ton is a weighty deterrent. Secondly, Europe is still very short of fats and oils, and prospective world supplies of copra and co conut oil this year are somewhat disappointing. It is unlikely therefore that there will be any great pres sure of copra on the market. Consequently, Europe will probably be able to take care of outside copra, which because of devaluation has a preference in sterl ing markets, leaving American buyers still chiefly de pendent on the Philippines. American markets are depressed due to large crops surplusses and threats of industrial unrest. Prices cannot therefore be expected to advance much except for distressed buyers. But in the United States, the laws of supply and demand will ultimately govern, and for minimum requirements prices must follow availability of copra. What this will mean for the Philippines must depend during the coming months on available supplies. Whether European buyers will still look at Philippine copra is problematical, but not impossible, although obviously they will draw on sup plies from sterling areas as far as they can. Were it not for ECA dollars when earmarked for purchases from the United States or the Philippines, in which European purchases have largely been made in recent months, Philippine copra would find it hard indeed to supply the European market. Certainly, there is nothing bullish for copra and coconut oil in devaluation; on the contrary, it is on the whole bearish. Prices should tend to be lower than they otherwise would. In another year, and with increasing world production of fats and oils, it may become a serious factor. But statements to the effect that Philippine copra and coconut oil face immediate ruin from devaluation appear, to say the least, pre mature. Desiccated Coconut Howard R. Hick President and General Manager Peter Paul Philippine Corporation THIS report covers the period from August 15 to September 15, 1949. Generally the industry continued at slightly reduced capacity, with the Blue Bar Company remaining shut down in Luzon. Peacock’ s6The Store of Quality 600 DASMAIIISAS TEL. 2-79-78 & 2-79-79 October, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 451 The copra market eased off after remaining quite steady during the first part of the period, and toward the close of the period copra and nut prices became bearish. We can look for a considerable fall in price due to the pound sterling drop as well as the drop in shipping rates for the coming period. It is too early to say what the drop in copra ship ping rates will do to desiccated coconut factories as far as purchasing nuts is concerned, but already indi cations are that around the coastal areas the middle men are absorbing a large part of the differential and that the freight drop has not been of much assistance to desiccators. Although it is too early to give a de finite opinion, events to date have only proved how definitely the desiccators are tied to copra events and prices. Labor-management problems remained at a min imum during the period. Standard Coconut Corpora tion had a flare-up of labor difficulties which to the date of this report have not been settled. The issue has become largely an inter-union squable with the company caught in the middle. We officially welcome into the ranks of the desic cated producers, Red V’s new factory in Oroquieta, which we hear is a fine factory, well planned, and making use of all labor-saving devices possible. This marks a post-war effort to establish multi-plant opera tions, as did Blue Bar before the war. The shipping statistics for the month of August are as follows: Shippers Pounds Franklin Raker Co................................. 3,941,560 Blue Bar Coconut Company ............. 218,070 Peter Paul Philippine Corporation ... 1,014,000 Red V Coconut Product, Ltd................. 2,325,600 Sun-Ripe Coconut Products, Inc.......... 291,000 Standard Coconut Corporation .......... 506,300 Cooperative Coconut Products ............ 599,700 Tabacalera ............................. 575,000 Coconut Products, Inc........................... 186,210 Luzon Desiccated Coconut Corp .......... 237,370 9,904,810 Sugar By S. Jamieson Alternate Secretary-Treasurer Philippine Sugar Association THIS review covers the period from September 1 to September 28, 1949. New York Market. — September opened with sales of Cuban, Puerto Rican, and Philippine sugar at 5.95^ for September/October shipment. There after sellers held out for 6C, at which price a fairly large quantity of sugar, mostly Hawaiian, was on of fer; but buyers showed little interest, apparently hop ing that, -to ease the supply situation, Washington would increase the United States consumption quota. This hope was realized on September 13, though not before buyers had paid 6 c* for 10,000 tons of Cubas for October shipment, by the announcement made by the U. S. Secretary of Agriculture that the 1949 United States consumption quota would be increased by 250,000 short tons, making the total quota 7,500,000 short tons. Of this increase, Cuba was allotted 246,600 tons, making her total United States allot ment 2,888,735 short tons. This had no noticeable effect, however, on sellers’ idea of price, and buyers finally gave up their idea of getting prompt arrivals below 6tf and purchased about 30,000 tons at that Valuable References For Your Business Library EXPORTERS’ DIGEST (Monthly Magazine) 1 yr. . . P12.00 2 yrs. . 20.00 Thomas Register, 1949 Ed......... 4 vols. P 40.00 Radio Amateur’s Handbook, 1949 .......... 5.75 Encyclopaedia Britannica ........ 24 vols. 550.00 Executive’s Desk Book—Pelo (Ed.) .... 16.50 Practical Business Administration 12 vols. 109.60 Modern Shop Practice ................. 9 ’’ 69.60 Automobile Engineering ............. 4 ” 54.60 Applied Electricity ....................... 8 ” 76.60 Many of our friends have already selected from our large collec tion of lovely PHILIPPINE VIEW CHRISTMAS CARDS. Now is the time to choose while the stock is complete, and there is plenty of time to yet your name print ed or engraved and your cvclopcs ad dressed. We have a new supply of Stamp Collectors Universal Stamp Album ........................... 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pages

450-451

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