COLONIAL SUGAR.

Northern Advocate, 17 June 1920, Page 4

COLONIAL SUGAR.

MYSTERIOUSLY IN CREASED

CONSUMPTION

INEXPLICABLE WORLD'S PRICE

The half-yearly meeting of shareholders of the Colonial Sugar Refining Company was held recently, Mr. H. C. Kater, chairman oi' directors, presiding. The chairman, in moving the adoption of the report and bai-ance-sheet, said:—

My remarks to you to-day should Ibegin with a reference to our inability to cope with the extraordinary demand for sugar during the past six months, to meet which we were in a difficult position, because the stocks usually accumulated in the winter had been delivered during the shipping strike, and two of the refiners did short work'to the extent of 6000 tons for want of coal. Nevertheless, we delivered 143,400 tons of refined sugar—more by 2000 tons than we ever disposed of before in the same period—besides the 25,700 tons of raw sugar mentioned in the report. We are still unaware what has become of all we have sold. Apparent-

ly every other person complains of short supplies; has the neighbour in each case" twice as much in his storeroom as is needed for his ordinary

consumption? A certain quantity was used in making jam for export which we cannot estimate; in other respects it seems open to doubt whether there has been any change in the habits of the people that would result in the daily use of a largely increased quantity of sugar.

Then, as to the advance in price, I can only, state that we had no voice, nor did we make a suggestion, as to raising the rates to be paid, to the sugar mills for the ensuing three i6ro_»s. About the selling quotations we had been asked to give our opinion, and had done so by pointing out the price the consumer should pay if the Government is to carry on the business without loss. You will probably have noticed that we askect for a small advance— 2/6 per ton— on what is called the refiner's margin, for which we receive under the present agreement 20/ per ton. As this is all we have to cover depreciation and interest on the capital employed in the refining plant and working stocks other than sugar (together .albout £1,500,000) and to finance from purchase to realisation the raw sugar supplies needed for the twelve months, expected to cost at least £8,000,000, it is evident that no charge of profiteering can be laid at our doors.

A MYSTERY.

Tihe course of the world's price of sugar is to us inexplicable. This is at present about that ruling when I addressed you last October, and we cannot understand how such a price ican be maintained, nor how Europe can continue to import under these conditions. What we can do, however, is to order our own affairs so .that a reversion, either immediate or delayed, to pre-war figures shall not find us unprepared.

In Queensland the year has been a trying one in regard to weather; still iwe had average crops at four of the mills. Though heavy rains, have lately fallen in the north the usual wet season has, to a great extent, failed ■us this year, and we expect rather less cane in 1920 than we had in 19,19, but the increase in the price of sugar may induce growers to add to the area under crop, though this can hardly have much effect on the production before 1922. In any case, the Cane Prices Act must be a serious hindrance to any such movement. As evidence of the willingness of our canegrowers to sell their crops ou the basis of contracts rather than have the matter determined by the Cane Prices Board, I can state that arrangements have been made at all our .mills c or the acquisition of the crop of 1920 by the company through an intermediary, as has been done during the last two years. Moreover, many of the farmers have expressed a desire to make an agreement to cover the two following years, • during which the .Commonwealth has undertaken to buy the sugar produced. The New South Wales north coast has been more favoured in weather conditions since last November, and the crops are now doing fairly well. Much of the young icane planted in .the past spring failed through the drought, and this failure cannot be made good till Sept&mbov; when there will probably be an increase in the area, and a larger crop will be looked .or two years hence.