DAIRY PRODUCE

Evening Post, Volume CXXIV, Issue 62, 10 September 1937, Page 11

DAIRY PRODUCE

GUARANTEED PRICES

ASSESSMENT BASIS

DETAILS RELEASED

Details of the working and maintenance costs taken into consideration by the Government in assessing its guaranteed prices for butter and cheese were given by the Minister of Marketing (the Hon. W. Nash) last night. The Minister said that the figures provided a basis for .a decision for which the Government accepted the 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 5.069 d per lb butterfat for butter and 4.927 d per lb butterfat for cheese, he said. It was also, stated that in ■ respect of farms supplying cheese factories .14d per lb butterfat had been added to the total working and maintenance costs, this being the assessed farm portion relating to the costs of milk delivery to the factory, a figure not shown elsewhere in the returns. This allocation makes the costs for butter and cheese practically identical. The allocation of working and maintenance expenses has been assessed by the Government under the following main headings:— Butter. Cheese. Main working expenses 2.917 d 2.573 d Total depreciation 9God > .S3Sd Sundry overhead expenses . .910 d .943 d Cow and pig food expenses .277 d .273 d Totals .- 5.069 d 4.927 d It is pointed out that \he addition of the extra .14d per lb in respect of butterfat for cheese production makes the respective allowances approximately equal. SPECIFIC ALLOCATIONS. The detailed figures submitted to the Government'were arranged in the form of costs a pound butterfat, representing the mean smoothed data for three fat groups—loo-1251b; 125-1501b. and 150----1751b of butterfat to the acre. The specific allocations taken by the Government under the main headings mentioned above are as follows, costs for butter and cheese being given in that order:—Main working expenses: Cultivating and harvesting (special costs), .228d'and .172 d; grass and other seeds, ,132 d and .152 d; fertiliser and lime, 1.107 d and 1.171 d; fencing repairs and renewals, .223 d and .202 d; water supply (repairs and maintenance), .069 d and .066 d; drainage (repairs and maintenance), .040 d and .038 d; noxious weeds control, .025 d and .061 d; rabbit control (poison and board rates), .003 d and .002 d; casual labour, .094 d and .071 d; cow covers used (repairs and replacements). .044 d and .04d; veterinary expenses, cows and pigs only, .064 d and .061 d; implements, etc., repairs and spare parts, .109 d and .106 d; horse expenses,' .052 d and .106 d; tractor and .truck expenses, .079 d and .04d; farm building expenses, .129 d and ,121 d; milking plant repairs,' .124 d and .106 d; milking shed power and heating, ,326 d and .293 d; milking shed* materials used, .069 d and .065 d. DEPRECIATION AND OVERHEAD. Depreciation Costs.—lmplements, etc., .267 d and .257 d; farm' buildings, .183 d and .167 d; milking plant, .247 d and .197 d; horse, .129 d and .146 d; tractor and truck, .139 d and .071 d. Sundry (overhead'expenses).—Insurance (labour, ■ fire,1 : etc., excluding house), .059 d and ;061d; telephone. .069 d and .07d; rural delivery, ,008 d and .'oo7d; subscription to farmers' organisations, .02d for both butter and cheese; accounting expenses, .016 d for both butter and' cheese; truck and car registration and driver's licence, .051 d and .061 d; car expenses (for farm use only), .188 d and .177 d;. other sundries. .03d for both butter, and cheese;' herdtesting and calf-marking, .079 d and .061 d; rates, .376 d and ,424 d;. land tax, .014 d and .016 d. Cow and pig food, etc., purchased, .277 d and .273 d. . The Minister pointed out that the figures quoted above were the result of 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.