DAIRY FARM COSTS

Nelson Evening Mail, Volume LXXI, 11 September 1937, Page 15

DAIRY FARM COSTS

FIXING GUARANTEED PRICES FIGURES ADOPTED BY GOVERNMENT The figures dealing with working and maintenance costs on which the Government has based its decision for the fixation of guaranteed prices for dairy exports during the current season were released by the Minister for Marketing (the Hon. W. Nash). It was made clear by the Minister that the figures provided the basis for a decision for which the Government itself accepted 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 5.0569 d per lb of butter-fat for butter, and 4.927 d per lb of butter-fat for cheese. It was also stated that in respect of farms supplying cheese factories .14d per lb of butter-fat had been added to the total working and maintenance costs, this being the assessed farm portion relating to costs of milk deliver yto the factory, a figure not shown elsewhere in the returns. This allocation makes costs for butter and cheese practically identical. MAIN HEADINGS The allocation of working and maintenance expenses has been assessed by the Government under the following main headings:— Butler. Cheese. Per lb. Per lb. d. d.

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. The detailed figures submitted to the Government were arranged in the form of costs per lb of butter-fat, representing means smoothed data for three fat groups—loo to 1251 b, 125 to 1501 b, and 150 to 1751 b of butter-fat to the acre. SPECIFIC COSTS The specific allocations taken by the Government under the main headings mentioned above are as follows: Butter. Cheese. Per lb. Perlb. d. d.

The Minister pointed out that the figures as quoted above were the result of a thorough and painstaking research. Farmers studying them would be able to apprec’ .te the manner in which all possible factors were taken into consideration in considering the prices to be fixed.

Main working expenses 2.917 2.873 Total depreciation .9G5 .838 Sundry overhead expenses .910 .943 Cow and pig food expenses .277 .273 Totals 5.0G9 4.927

Main working expensesCultivating and harvesting (special costs) Grass and other .228 .172 seeds .132 .152 Fertiliser and lime Fencing repairs and 1.107 1.171 renewals Water supply (repairs and main.223 .202 tenance) Drainage (repairs .069 .066 and maintenance) Noxious weeds con.040 .038 trol .025 .061 Rabbit control (poison and board rates) .008 .002 Casual labour Cow covers (repairs) .094 .071 and replacements) Veterinary expenses— .044 .04 Cows and pigs only .064 .061 Implements, etc., (repairs and spare > parts) .109 .106 Horse expenses Tractor and truck ex.052 .106 penses Farm building ex.052 .106 penses .129 .121 Milking plant repairs Milking shed power .124 .106 and heating Milking shed materials .326 .293 used Depreciation costs, im.069 .065 plements, etc .267 .257 Farm buildings .183 .167 Milking plant .247 .197 Horse .129 .146 Tractor and truck .... Sundry overhead expenses, insurance, labour, fire, etc., .139 .071 excluding house .... .059 .061 Telephone .069 .07 '’'iural delivery Suoscription to farm.008 .007 ers’ organisations .02 .02 Accounting expenses Track and car registration and driver’s .016 .016 licence ir expenses (for farm .051 .061 use only) .188 .177 Other sundries Herd testing and calf .03 .03 marking .079 .061 Rates .376 .424 Land tax Cow and pig food, etc., .014 .016 purchased .277 .273