MR. GROUNDS' VIEWS.

Auckland Star, Volume LVI, Issue 290, 8 December 1925, Page 6

MR. GROUNDS' VIEWS.

(By Telegraph.—Press Association.) ; WELLINGTON, this day/ '" Mr. W. Grounds, chairman of ' tha Dairy Control Board, considers that the seamen's strike was the cause of tit sudden drop in the price of butter from 200/ to 184/. Although control does not come into force until next August, thai board had made arrangements for a regular service, which would have equal, ised the supply. The strike denuded th» market, and prices soared-to 236/, wliil» produce was piling up here. Now thert is a glut, which is repsonsible for the fall. Australia was in the same posi« tion. Their butter was all reaching * Home at the same time. He did not sco " that anything could be done to remedy it. Another factor was the diminished purchasing power of English customers. A fall in prices after Christmas wa* always expected, but this year th§ .slump was much earlier. The board's, policy was to prevent this eort of thing; by regulating supplies and preventing disastrous fluctuations. Mr. Grounds added: "We have had a bad season. Supplier are below the average, and, with this early fall, farmers are hit both ways; Unless.there is an unusually good autumn, both farmers and country will suffer considerably." I " ■ ' ' ■' , ■