DAIRY FARM COSTS

Press, Volume LXXIII, Issue 22194, 10 September 1937, Page 14

DAIRY FARM COSTS

FIXING GUARANTEED PRICES FIGURES ADOPTED BY GOVERNMENT WORKING AND MAINTENANCE EXPENDITURE (From Our Parliamentary Reporter.] WELLINGTON, September 9. The figures dealing with working and maintenance costs on which thk Government has based its decision for the fixation of guaranteed prices for dairy exports during the current season were released to-day by the Minister for Marketing (the Hon. W. Nash). It was made clear by the Minister that the figures provided the basis for a decision for which the Government itself accepted entire responsibility. The detailed examination of working and maintenance costs on dairy farms submitted to the Government placed the total expenses from these sources at 5.0G9d per lb of butter-fat for butter, and 4.927 d per lb of butter-fat for cheese. It was also stated that in respect of farms supplying cheese factories .14d per lb of butter-fat had been added to the total working and maintenance costs, this being the assessed farm portion relating to costs of milk delivery to the factory, a figure not shown elsewhere in the returns. This allocation makes costs for butter and cheese practically identical. Main Headings The allocation of working and maintenance expenses has been assessed by the Government under the following main heading.:- Butter . cheese. Per lb. Per lb. d. d. Main working expenses 2.917 2.873 Total depreciation .. .Jos .bjo SUnd pS s e s OV " hC "' .910 .943 Cow and pig food ex- - :: sS <S It is pointed out that the addition of the extra ,14d per lb in respect of butter-fat for cheese production makes the respective allowances approximately equal. The detailed figures submitted to the Government were arranged in the form of costs per lb of butter-fat, representing mean smoothed data for three fat groups—loo to 1251b, 125 to 1501b, and 150 to 1751b of butter-fat to the acre. Specific Costs

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The specific allocations taken by the Government under the mam headines mentioned above are as follows: — Butter. Cheese. Per lb. Per lb. d. d. Main working expenses— Cultivating and harvesting (special .228 .172 costs) Grass and other .132 .152 seeds Fertiliser and lime 1.107 1.171 Fencing repairs and .223 .202 renewals Water supply (repairs and main.069 M6 tenance) Drainage (repairs .040 .038 and maintenance) Noxious weeds con.061 trol .025 Rabbit control (poison and board .003 .002 rates) Casual labour .094 .071 Cow covers (repairs .044 .04 and replacements) Veterinary expenses— .064 .061 Cows and pigs only Implements, etc, (repairs and spare .109 .052 .106 .106 parts) Horse expenses Tractor and truck ex.079 .04 penses Farm building ex.121 ,106 penses Milking plant repairs .129 .124 Milking shed power .326 .293 and heating Milking shed materials .069 .065 used .. Depreciation costs, im.267 .257 plements, etc. Farm buildings .183 .167 Milking, plant .247 .197 Horse .129 .146 Tractor and truck .. .139 .071 Sundry overhead expenses, insurance, labour, fire, etc., ex.061 cluding house .059 Telephone .069 .07 Rural delivery .008 .007 Subscription to farm4 .02 ers’ organisations .. .02 Accounting expenses .016 .016 Truck and car registration and driver's .061 licence .051 Car expenses (for farm .188 .177 use only) .. Other sundries .03 .03 Herd testing and calf .079 .061 marking Rates .376 .424 Land tax .014 .016 Cow and pig food, etc.. .277 .273 purchased The Minister pointed out that the figures as quoted above were the resuit of a thorough and painstaking research. Farmers studying them would be able to appreciate the manner In which all possible factors were taken into consideration in considering the prices to be fixed.