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Dáil Éireann debate -
Wednesday, 9 Dec 1942

Vol. 89 No. 1

Ceisteanna—Questions. Oral Answers. - Flour Production.

asked the Minister for Supplies if he will state, with reference to the present cereal year, (a) the average estimated cost of grist per barrel to the miller; (b) the average net production of flour from 1 cwt. of grist; (c) the average estimated cost of manufacturing 20 stones of flour; (d) the price fixed by the Minister for 20 stones of flour; (e) the subsidy paid to the miller on each sack of flour manufactured.

The average cost of the grist to the miller depends on a number of factors which vary from time to time, for example, the percentage of Irish wheat used, and the cost of the imported wheat, which cannot be measured in advance, as well as the amount of subsidy payable. For these reasons it is not possible to state the average cost of the grist over the present cereal year. On the basis of the present user of, and the prices paid by the millers for, both wheats the average net cost of grist per barrel to them is 47/8.

The average net production of flour from 1 cwt. of grist varies according to the flour extraction; 1 cwt. of the present quality flour is produced from 1 cwt. of grist. The average cost of conversion is 7/1, to which must be added certain selling expenses averaging 4/- per sack. I must stress that these are average costs over a period for the industry as a whole and do not necessarily represent actual costs in any mill. Furthermore, these costs vary from time to time due to a number of factors, including, for instance, fluctuation in production. The cost of the wheat to the millers added to these costs is, therefore, 58/9 per 20 stones.

The present controlled price for 20 sts. of flour in the case of mills situated within a radius of five miles from the principal post office in the cities of Dublin, Cork, Limerick and Waterford, is 60/- (f.o.r.). In the case of any other mill it is 60/- (f.o.r.) plus an additional charge not exceeding 2/- according to the distance from the nearest main port.

Subsidy is not paid direct to millers but an adjustment is made in the prices of imported wheat allocated to them so as to maintain the average grist cost at such a level as will enable flour to be sold at the controlled price. Grain Importers (Éire) Limited, who import the wheat, are recouped from the subsidy in respect of the losses incurred by them in selling the imported wheat below cost.

Will the Minister say whether the percentage of imported wheat used for grist is evenly distributed over the country? Is every miller getting the same percentage?

That is so. That may not always have been so nor may it, in the future, always be so. The percentage may change according to the nature of the flour produced in the mill. There have been occasions upon which a higher percentage of imported wheat was given to mills producing bakers' flour as distinct from those producing only shop flour. But there is an even distribution as between millers producing the same type of flour.

Would I be right in saying that in some districts there could be 10 per cent. more foreign wheat in the grist than in others?

It would not be possible for me to answer that question without notice. Each miller gets the grist at the same price.

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