THE DAIRY INDUSTRY.

Kaikoura Star, Volume LIV, Issue 51, 2 July 1934, Page 2

THE DAIRY INDUSTRY.

(To the Editor). Sir, —I shall endeavour to show why butter-fat at 78/-'per cwt. docs not pay the New Zealand farmer. A herd of •10 cows giving the average production for New Zealand of 1801bs of butterfat at B|d would give a gross return of £247 10/. Pigs would return, say, £35, making the gross retain for the farm £282 10/. To rent a farm capable of doing 40 cows well would cost, say, £6O per annum, and this with ordinary rates, river rates, etc., would be increased by at least another £2O. Even with machines one assistant would be required, assessing his wages at £1 and keep 10/, for nine months, would bring this item to £5B 10/. Occasionally cows dio or go wrong and have to be replaced. Cull cows are worth about £1 each. In a herd of 40 cows £2O per annum would not be out of the way to allow for replacements. Petrol, oil and spare parts, etc., say £B. Wintering- 40 cows out for eight weeks at 2/ per head, £32. Top-dressing, four tons of Super at £5 7/6, £2l 10/. Sundry expenses such as hay-making, seed, upkeep of buildings, fences, harness and implements, £3O. Interest on purchase price ox herd, and plant, £4OO at 5 per cent., £2O. Thus we have receipts from butter-fat and pigs—£2B2 10/. Expenditure—rent £6O, rates £2O, interest £2O, wages £5B 10/, replacements £2O, petrol and oil £B, wintering-out £32, top-dressing £2l 10/, sundries £3O; a total of £270. Balance for farmer to feed and clothe himself and family, £l2 10/; ni if the farmer owned the farm and Lad it with stock and plant all clear of debt, his labour and capital would stilt be bringing in less than £lOO a year.—l am, etc.