BUTTER MARKETS

Hawke's Bay Tribune, Volume XXIV, Issue 119, 4 May 1934, Page 10

BUTTER MARKETS

Soviet Price-Cutting Writing to the editor of the London “Morning Post,” the Duchess of Atholl refers to “tjie influence that butter from the Soviet Union has hud in dragging down prices on this market, since the Five Year Plan began to get under way.” She continues: “In 1928, the year at the end of which the Plan started, Soviet butter came here at the same average price as Australian, i.e., 157 a. a cwt. The average price of New Zealand butter in the same year was 16*». In 1929, Soviet butter was practically the same —1565. the cwt., and New Zealand and Australian rose in price. “But in 1930 Russian butter slumped to 1215., and dragged down New Zealand and Australian butter to 137 a. and 1265. respectively. “The fall ha« been continuous ever since, as the following figures show, and Russian butter, it will be noticed, uas always been far below all others in price. Average price per cwt. in shillings and decimals thereof:

“When we remember that the Soviet Union, although not our largest supplier, still exports butter to us in considerable quantities (she was fourth on the list in 1931 and 1933, and fifth in 1932), the influence of this continuous and deliberate price-cutting on our market appears obvious. It is equally obvious that heavy loss has been caused not only to British but to Dominion farmers as a result. “And, though Russia sends us no cheese, may it not be that the price of Dominion cheese has been affected by the lowered price of butter? “It is to be hoped that dairy farmers will endeavour to safeguard their position by asking the Government .to prohibit the importation of Russian butter under the powers reserved under Article 2 of the new’ Russian Trad* Agreement. This unfortunately requires not less than throe months’ notice to be given before any actual action can be taken, but at least it should be tried, to see if it can give some security from price-cutting, which is devastating alike to British and Dominion farmers. “Only if it gives this security against dumping not only of butter, but of oats and barley, will the agricultural community, at least, be able to share the belief which the Minister of Agriculture is reported to have expressed, that the agreement is “advantageous” to this country.”

Jan <1 t Feb Country. 1931 1932 1983 1934 Soviet Union 97 76.8 60.6 40 New Zealand 111 101.8 81.2 68.» Australia 107 95.7 77.1 65 Denmark 120 103.9 84.9 74.8