THE GUARANTEED PRICE

Te Awamutu Courier, Volume 53, Issue 3792, 7 August 1936, Page 7

THE GUARANTEED PRICE

EFFECT OF THE GUARANTEE. “During last May I had the opportunity ot meeting the majority of our suppliers and at thar time I gave them full details as to what would happen as far as the guaranteed price was concerned," said Mr E. Runnerstrum, governing director of the Waikato Valley Dairy Co.. Ltd., in stating his opinion of the guaranteed price. There was only one man in this country to pay the cost of the present Government’s policy—namely the producer. Hence while his gross receipts might appear larger his net income would be less. In May, Mr kunnerstrum continued, he had given farmers figures so that they could size up the position. Taking 100 lbs of butter fat with an over-run ot 21.5 as the basis for the average factory in the Waikato, the expenses would amount to 2.25 d including cream cartage and the estimated rise in costs of approximately id. The amount of first grade butterfat received was estimated at 30 per cent. The amount received per lb of butter fat would amount to < 15.20876 d and, less expenses ot 2.25 d, would mean a factory pay out of 12.95876 d. The average pay out would amount to, say, 13d, less an estimated increase in costs, farm labour, etc. ot 2d, leaving an estimated net return to the farmer of lid. The estimated net return to (he farmer for the 1935-36 season, concluded Mr Runnerstrum, was 12.50 d, and for the 1936-37 season lid, this representing an estimated loss to the farmer under the guaranteed, price of 1.50(1.