RUSSIAN BUTTER

Evening Post, Volume CXII, Issue 8, 9 July 1931, Page 9

RUSSIAN BUTTER

MORE ALLEGATIONS

UNFAIRNESS OF TRADE

(From "The Post's" Representative:) LONDON, loth May.

While Bussian butter is being dumped in this country to tho injury of the Dominions, it is alleged by the "Morning Post" that large quantities of British margarine aro being imported by the Soviet Government to feed the Kussian people. This is proved by figures obtained from the Statistical Department of the Customs Service.

It is expected (says the' "Morning Post") that the first shipload of 15,000 barrels of Bussian butter, which arrived on Monday, will bo sold at between 6s and Ss a, box less than tho finest Empiro 'butter, in of the fact that in Moscow as much as 25s a pound is paid for Bussian butter.

Tho present Soviet campaign of butter dumping follows a period during which the Knssian output of butter dwindled until it reached negligible proportions. The figures relating, to British exports of margarine to Russia show that these exports have been carefully prepared iv advance. It_ is believed, indeed,. that they are being facilitated to a largo extent by tho Government export credit scheme. The monthly returns of the Board of Trade show that up till August last year tho total monthly exports to all countries amounted to between 2000 and 3000 cwt. Last September, however, the total rose abruptly from 2722cwt for the previous month to 12,860ewt —the monthly totals for September, 192S and 1929, having been 2539cwt and 2355cwt respectively.

Since September the total exports have increased steadily, and iv April —tho last recorded month —they exceeded 50,000ewt. It is freely stated on the butter market, that a largo part of these exports of British margarine to,Bussia aro being dispatched by tho co-opera-tive movement.

"Without the supplies obtained from this country," said a prominent merchant, "the Soviets would bo unable to dump their butter iiK Great Britain. Tho butter production of Russia is actually decreasing, and there is a serious shortage in the country. British margarine is being sold in Eussia at from 5s to 10s a pound, and is being used instead of their own butter, in order that tho latter may be exported. If these: margarine exports wero stopped, it would be an impossibility for Bussia to dump butter here."

It is generally believed on the butter market that the British shipments of margarine to Eussia are boing financed by the Government longterm credit schemes, by which guarantees up to 75 per cont. may to obtained. Considerable indignation _is ■felt at the provision of such facilities, since they give to tho Soviets the advantage of obtaining margarine on easy terms, while easli is paid by ua for Bussian butter.