GUARANTEED PRICES

Wanganui Chronicle, Volume 80, Issue 215, 10 September 1937, Page 8

GUARANTEED PRICES

HOW THEY WERE FIXED FIGURES USED AS BASIS WORKING AND MAINTENANCE COSTS [ Ter Press Association. J WELLINGTON, Sept. 9. Figures relating to the 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 the Hon. W. Nash. It was made clear by the Minister that the figures provided a vasis for the decision for which the Government itself accepted entire responsibility. A detailed examination of the working and maintenance costs on dairy farms submitted to the Government placed the total expenses from these sources at 5.069 d per lb. of butterfat for butter and 4.927 d per lb of butterfat for cheese. It was also stated that in respect of farms supplying cheese factories .14d per lb. of butterfat had been added to the total working and maintenance costs, this being the assessed farm portion relating to costs of milk delivery to the factory, a figure not shown elsewhere in 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 heading," said Mr. Nash. Main Working Expenses: Butter, 2.917 d; cheese, 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. The detailed figures submitted to the Government were arranged in the form of costs, a lb. of butterfat representing the mean smoothed data for three fat groups—loo-1251b., 1251501 b., and 150-1751 b. of butterfat to the acre. Specific allocations taken by the Government under the main 1 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 linje, 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 .061 d. 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, implements, etc., .267 d 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 fl Sundry overhead expenses, insurance (labour, fire, etc., excluding house), .059 d and .061 d. Telephone, .069 d and .07d. Rural delivery, .008 d and .007 d. Subscription to farmers’ organisations, .02d for both butter and cheese. Accounting expenses, .016 d for both butter and cheese. 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, .014 d and .016 d. Cow and pig food, etc. purchased, .277 d and .273 d. The Minister pointed out that the figures quoted above were the result lof a thorough painstaking research. Farmers studying them would be able to appreciate the manner in which all possible factors were taken in consideration in considering the prices to be fixed.