LOSSES ON COFFEE

Dominion, Volume 31, Issue 104, 27 January 1938, Page 12

LOSSES ON COFFEE

Threat To Plantation A. suggestion that the properties of the East African Coffee Plantation, Limited, in Kenya, might be employed for more profitable purposes than coffeegrowing was made by shareholders,at the annual meeting of the company recently. It was stated that expenses of £lB,OOO en 1325 acres under cultivation were excessive, and it was resolved that the directors should make inquiries on the value of the property. It was stated on behalf of ibe board that a grant to grow tea had alreadybeen applied for in the event of the company ultimately deciding on that course. Tlie acting-chairman, Mr. J. C, Pratt, explained that the weak state of the coffee market was mainly responsible for the unsatisfactory position. The average price realised hud shown n considerable improvement compared witli the previous year, but was nevertheless lower than in the worst years of the depression, he said. "Opening sales of this year's coffee,” Mr. Pratt continued, “were at further improved prices, but something in the nature of a bombshell was dropped into tlie market about two months ugo when Brazil announced a reduction of 75 per cent, in the export tax on coffee. This export tax has for many years provided the funds for destroying her crop surpluses. The announced intention is Hint restriction of production will cease."