AUSTRALIAN SUGAR

Evening Post, Volume CIX, Issue 120, 25 May 1925, Page 3

AUSTRALIAN SUGAR

OVER-PRODUCTION

DISPOSING OF THE SUEPLUS.

The chairman of the Colonial Sugar Eefining Co., Ltd. (Mr. E. W. Knox) told the half-yearly meeting of shareholders in Sydney early this month, reports the "Daily Telegraph," that the continuing increase in the area under cane in Queensland and New- South Wales would be manifested in a crop vastly in excess of Australian consumption. The position had been faced, however, and a sale had been effected of most of the surplus sugar. The promise of a higher preferential duty by Britain was a welcome "grant in aid" for this transaction. ,

As to the future, it had not yet been possible to see how a diminution of the area under cane could be brought about, with fairness to all concerned, but the separation now being made of the cano destined to supply .Australian wants from that used to produce sugar for export, -was a step in the right direction. In Fiji, more sugar was made than was expected. For the coming season, the crop prospects in that colony wore good, the rainfall having been sufficient and well distributed, 'taking all the company's mills together, a little more sugar was made than the company had yet obtained in any one year, the total being 189,000 tons. It seemed possible that this year the production might be more than 210,000 tons, the proportion from Fiji exceeding the quantity needed for the supply of New Zealand. Accordingly, the company had sold the surplus to Canada, at the market value, on the date of delivery. The company had undertaken, as usual, to finance the 1925 crop for Australia, and, in addition, 'to pay for the sugar to be exported, being recouped for the latter as this arrived in England. "I wish it were possible," Mr. Knos continued, "to say that all labour conditions were satisfactory. This is the case as regards the' men we employ in the Australian mills, many of whom are returned soldiers, but the same cannot be said of the port labour, and the cost of shipping the sugar is exceedingly high, the unions having little control over the members doing this work. For the cane cutting in Queensland, the growers are employing Italians to a great extent, and it seems probable that the supply of cutters, who are engaged by the farmers, will be ample this season. Those from North Italy-are good workers, and well conducted. Wo have not been concerned in any way in the introduction of the immigrants ' from Southern Europe, whose arrival has given rise to protests from the Queensland trade unions."

The bonus which was declared, Mr. Knox said, was largely due to improved conditions in Fiji. "If you tell us," ho added, "what will be tho value of our next season's production in that colony, and answer other similar questions relating to the work of our factories, wo could say whether the payment of the bonus will continue, but all"that can now be stated is that it is hoped this will be the case. To me, it seems that one should have the faith that removes mountains to believe that the high values of the main articles of production throughout the world will be maintained. It can be admitted that there is a general demand for better conditions of lifer-food and clothes iucluded; tho question is, how is the increased cost to be provided with a disordered trade, and without an adequate working capital? Till this question is answered, prudent people will kgep eu tho safe side of foil bedjtfc'l