Dairying Costs

Hawke's Bay Herald-Tribune, Issue 201, 10 September 1937, Page 6

Dairying Costs

-Press Association. i

MINISTER'S FIGURES Factors Considered In Fixing Guarantee HOW PRICE WAS ASSESSED

(By Teleeraph-

"WELLINGTON, Last Night. j i Figures xelating to working and' jmamtenanca costs .on wliich tlie' 'Government based i'ts decision regard:ing the fixation of guaranteed prices f or •dairy exports during the current season ■wars released to-day by Hon. W. Nasb. It was made clear by tha Minister that jthe figures provided a basis for the. jdeclaion for which tbe Government litself accepted entire responsibility. A detailed examination of working (and maintenance on. dairy farms, jnubmitted to jfch» Government, placed jtbe total experts from tbese sources at 5.069d per lb butter-fat for butter and 4.927d per lb butter-fat for eheese. It was also stated that in xespect of •farms supplying cheese factories, .14d per lb butter-fat had been added to the itotal working and maintenance costs, this being the assessed farm portion xelating to costs of milk delivery .to faetory. The figure was not shown elseWhere in the returns. This allocation makes costs for butter and cheese practically identical, j ' The allocation of working and mainJenance expenses has been assessed by 'the Government under the following jnain headings:— Butter. Cheese.

. d. d. iMain working expenses 2.917 2.873 Total depreciation „ .965 .838 gundry overhead expenses . . . . .910 .943 Cow and pig-food expenses .. .277 .273 Totals >>5 5.069 4.927 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. Detailed figures submitted to the Government were arranged in the form of costs a lb butter-fat, representing tho mean smoothed data for the three fat groups — 100-1251b, 125-1501b, and 150- * 1751b of butter-fat to the acre. 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), .228d and .172L Grass and other aeeds; .132d and J52d. Ferliliser and lime, 1.107d and 1.171d. Feneing repairs and renewals, ,223d and .202d. Water supply (repairs and maintenance), .069d and .066d. Drainage (repairs and maintenance), •040d and .038(1. Noxious weeds control, .025d and .061d. Eabbit control (poieon and boa^l xates), .003d and .002d. Casual labour, .094d and .071d. Cow covers used (repairs and replaceBients), .044d and .04d. Yeterinary expenses, cows and pigs •nly, .0.64d and .061d. Implements, etc., repairs and spare parts, .109d and .106d. Horse expenses, .052d and .106d. Tractor and trnck expenses, .079d and .046. Farm building expenses, .129d and •123 d. Milking plant repairs, .124d and J06d. ' Milking, shed power and heating, J26'd and '.293d. Milking* shed materials used, .069d ud .065d. ; Depreciation costs. — Iinplements, etc., I ,267d and .257d; farm buildings, .183d and .167d; milking plant, .247d and •197d; horse, .129d and ,146d; tractor and truck, .339d and .071d. fiundry overhead expenses. — In&urance (labour, fire, etc., excluding house) ,059d and ,061d; telephone, .069d and J07d; rural delivery, .QOSd and .007d; , aubscription to farmers' organisations, ; .02d for both butter and cheese; j accounting expenses, .OlGd for both ! butter and chese; -truck and car regis--tration and driver's licence, .051d anu .061d; car expenses (for farm use onlv, .188d and .177d; other sundries, ,03d for both butter and chcese. Herd-tcsting and calf marking, .073d and „C61d. Rates, .37Gd and .42-ld. Land tax, .041d and ,G16d.

Cow and pig food, etc., purchased, .277d and .273d. The Minister pointed out that ihe figures quoted above were Ihe result of a thorough and painstaking research. Farmers studying thcm would be able to appreciate the manner in which all possible factors' were taken into consideration in considering the' prices t>. be fixed.