ARRIVING AT GUARANTEED PRICE.

Horowhenua Chronicle, 10 September 1937, Page 7

ARRIVING AT GUARANTEED PRICE.

MINISTER RELEASES FIGURES

THAT WERE TAKEN INTO CONSIDERATION

(By Telegraph—Press Association.) Bast Night. Figures relating to working and maintenance costs on which the Government based its decision regarding the fixation of guaranteed prices for dairy exports during the current season were released to-day by Hon. W. Nash. It was made clear by the Minister that the figures provided a basis for the decision for which the Government itself accepted entire responsibility. A 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 butter-fat for butter and 4.927 d per lb outter-fat for cheese. It was also stated - that in respect of farms supplying cheese factories, .I4d per lb 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 factory. The figure was not shown elsewhere in the returns! This allocation makes 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, d. d. Main working expenses 2.917 2.878 Total depreciation . . .905 *B3B Sundry overhead expenses 910 .943 Cow and pig-food expenses 277 .273 Totals 5.069 4.927 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. Detailed figures submitted to the Government were arranged in the form of costs a lb butter-fat, representing the mean smoothed data for the three fat groups—loo-1251b, 125-1501 b, and 1501751 b of butter-fat to the'acre. 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), ,228 d 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 .OOld. 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 costs.—lmplements, etc., ’.267d 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.—lnsurance (labour, fire, etc., excluding house) .059 d and .061 d; telephone, .069 d and .07d; rural delivery, .OOSd and .007 d; subscription to farmers’ organisations, .02d for both butter and cheese; accounting expenses, .ol6d for both butter and chese; . 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. Herd-testing and calf-marking, .079 d and .061 d. Rates, .376 d and .424 d. Land tax, .041 d and .016 d. Cow and pig food, ,etc., purchased, .277 d and .273 d. The Minister pointed out that the figures quotgd above were the result 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.