GUARANTEED PRICES

Manawatu Standard, Volume LVII, Issue 241, 10 September 1937, Page 2

GUARANTEED PRICES

GOVERNMENT’S DECISION. THE BASIS EXPLAINED. WELLINGTON, Sept. 10. Figures relating to working and maintenance costs on which the Government ha 6 based its decision regarding the fixation of guaranteed prices for dairy exports during the current season were released yesterday by the Minister of Marketing, Hon. W. Nash. It was made clear by the Minister that the figures provided a basis lor a decision for which the Government itself accepted entire responsibility.

The detailed examination of working and maintenance costs on dairyfarms, 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. 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;

Buffer. Cheese. Main working expenses 2.917 d 2.873 d Total depreciation 965 d ,838 d 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 the addition of the extra .14d per lb. in respect of butterfat for cheese production makes the respective allowances approximately equal. DETAILED FIGURES.

The detailed figures submitted to the Government were arranged in the form of costs a lb butterfat, representing the mean smoothed data for three fat groups—loo-12511), 125-1501 b and 150-1751 b 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), ,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(1; wnter 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 hoard rates), ,003 d and ,002 d; casual labour, ,094 d and .071(1; cow covers used (repairs and replacements), ,044 d arid .04(1; 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(1; milking plant repairs, .124 d and .106<1; milking shed power and heating. .326 d and ,293 d: milking shed materials used, ,069 d and .065(1.

Depreciation costs: Implements, etc.. ,267 d and .2576: farm buildings, ,183 d nnd .167(1; milking plant. ,247 d and .197 d ; horse, . 1 °9d and .146(1; tractor and truck, .139(1 and ,071 d. OVERHEAD EXPENSES.

Sundry overhead expenses: Insurance (labour, fire, etc., excluding house), ,059 d nnd ,061 d; telephone, ,069 d and .07(1; rural delivery, .008 d and .007 d ; subscription to farmers’ organisations, .02d for both butter and cheese; truck and car registration and driver’s licence, .Oold nnd .061(1; car expenses (for farm use only), .l_Bßd and .177 d; other sundries, .03d Tor both butter nnd cheese: herd-testing and calf-marking, ,079 d and .061 d; rates, ,376 d and .424(1; land tax, .014 d and .016 d.

Cow and pig food, etc., purchased ,277 d and .273k1.

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 con sideration in considering the prices to be fixed.

DISSATISFACTION EXPRESSED.

FARMERS’ UNION EXECUTIVE.

Dissatisfaction with the new season’s guaranteed prices for butter and cheese, insofar as they relate to increased costs of production, was expressed by the Dominion executive of the New Zealand Farmers’ Union, sitting at Wellington yesterday. It is the intention of the executive to meet the Minister of Marketing, Hon. W. Nash, to-day, and place its views before him.