MILK, LAND, AND LABOUR.

Evening Post, Volume LXXI, Issue 145, 20 June 1906, Page 2

MILK, LAND, AND LABOUR.

THE FARMERS' PROBLEM OF HIGH PRICES. AN INTERESTING PAPER. {From Our Special Reporter.) PALMERSTON, This Day. Mr. J. C. C, Gebbje, of Te Roti (laranaki), read a paper on the very interesting subject, "Cost of Milk Production as Affected by Land Values and Labour," at to-day's sitting of the Dairy Conference. The subject, sajd Mr. Gebbie, -was one that was not, in his -opinion, taken seriously enough into account when considering New Zealand's position as a competitor inthe Home market; and as other countries were trying hard to equa" us in the quality of our butter and cheese, it required more attention to the producing end to successfully combat competition. "We may take it for granted," said tlm speaker, "that in the manufacturing part pf the busjneps pur yarious factory staffs have arrived at us near perfection as can reasonably be expected; therefore, any material improvement, either in quality or m more economical production, must, in the future, emanate from the dairyman himself. Going into the land question, Mr. fJebbie said they could safely assume that land valued at £25. per acre should be capable of grazing one cow to two acres, with tb,e aseistapce of extra winter feed 5 apd that \h» average cost of a herd of dairy cowa would be. about £6 10s per head. On this basis, the position presents itself something l(ke thfe:— s pfcu cent, on the capital value of such land is 25s per acre in the shape of rent, to which must be added rates, taxes, and in; surances, amounting to quite 2s 6d per acre, so that allowing two acres to the cow, we have a primary cost^of grazing alone, of £2 15s per head. Interest on capital invested in cows (£6 10s per head) at 6 per cent. 3s 7s 9d; depreciation of the dairy herd may at tho least be put dowp at 10 per cent, equalling 13s per head. The cost of wintering cowe, either by growing winter feed or by grazing out, may be estimated at another 5s per head} so thaf, we have ai; absolute charge to the owner of a dairy herd of £4 0s 93 or, say, £4 per head, without allowing anytbjng at all for labour. 4s to the labour aspect, the wage for a man capable qf milking twenty cows at a, milking would not be less than 20s per week, with board added (say another 8s) or a total of £72 per year, which gave an average cost per cow of £3 12s for labour alqne. Adding to the cost ot jubour the cost of keeping the cow, the farmer had to obtain a return of £7 123 per year before a cow was profitable under present condjtiops ; and this was necessary for the worst cow in the fched v, make herself payable. It must pot be thought that if a herd were, on these conditions, to average £7 12s per head, that all were payable, for if none of them did better than that many cows would have been milked at an actual loss. - The speaker did not think he could be accused of over-estimating the cost of production, in fact, it appeared to him that he had considerably under-estimated it 5 but, taking his figures, as 4 standard, it must appeal to all that, as a whole, dairy farmers were engaged in a work that was' not as profitable as it should be to that all concerned would be justly paid. In some cases it^piight be that land was too dear tv give profitable returns and allow a reasonable wage to be paid for mijking; in others, it might be that wages wertt too high, apd in others again, that the losses each year in the herd might be. abnormally high Land values had no tendency to come down, neither had the price of labour ; so^ logically, there wns only one tnjng for farmers to dp, '(and that was to get Inore put of our 'land through our cows." 1 The way to do this was shortly summed' up :' "Better feed and better cows." Assum. ing tlwt, as a whole, farmers adopt thft latter system^ and that at the end of the seaspn they dispose of their inferior slock, they were faced with this question:' 'Wher^re we to procure better?" Good pews. would not be peered for sale, for, once- their capabilities were known, they wpuld readily, assume a greater importance in their owners' eyes. It might be Urged that each, dairyman should keep the heifer calves from his best cows, but there were many difficulties in the way of doing this. Land at 25s rental was too deo.y to rear calves on, at present values, all events, and as the dairyman' could not mahnge to keep hje own calves, he became careless Jn the use of *g6od bulls, ; and as uot only one dairyman, but practically ill, were in the same position, they were faced in the near future with an increased difficulty in the way of improvement under this scheme, ConphiAipg, Mr. Gebbio said;— «'Our present methods, as practised, are leading us afray from improvement instead of to it. Experience should tteaoh us when is the most prpfltable time to occupy as the milkipg season, also what aie the cheapest and bpsf feeds to grow ip our ewp. districts, .but the advisablenesa of selling cbws below the standard at 6toro prices apd purchasing at dairy prices, something probably np better than irhat has just been discarded", is a matter which must be left to each man's judgment. With high land values, dear labour, and a deteriorating sbandan* of dairy stock, we are brought face to face with a danger that is threatening the very existence of oi)r industry,"