asked the Minister for Agriculture if he will state with reference to the White Paper on Guaranteed Market and Prices for Dairy Produce (a) the reference in the Irish Trade Journal from which the prices of concentrates and hay quoted in paragraph 18 are taken; (b) whether the price of hay quoted in the same paragraph is taken as half the price of meadow hay or of first or second crop hay; (c) whether the calculated cost of 5.12d. per gallon for feeding is to be taken as the basis on which present prices are fixed and on which, in the five years' plan, future adjustments, if any, will be calculated, and (d) if he will give some examples of price adjustment to illustrate how the scheme will operate.
Ceisteanna—Questions. Oral Answers. - Prices for Dairy Produce.
The following are the particulars asked for:—
(a) In the Irish Trade Journal the average quarterly retail prices of feeding stuffs in towns and the average quarterly prices of hay at fairs and markets are given. The prices quoted in paragraph 18 of the White Paper on Guaranteed Market and Prices for Dairy Produce represent in the case of crushed oats and meat meal the average of the prices in the Trade Journal for the four quarters ended September and December, 1944, and March and June, 1945, and in the case of hay half the average of the prices given for the same four quarters.
(b) In calculating the average price for hay the prices of meadow hay and first year's and second year's crop were all taken into account.
(c) and (d) 5.12d. is the portion of the milk price allowed for roots, hay, crushed oats and meat meal and only that portion of the milk price will be affected after 31st March, 1947, by the future cost of the items mentioned or of cheaper substitutes if available in quantity. For example, if the yearly average of the prices of hay at fairs and markets as published in the Irish Trade Journal rises or falls by 20/- per ton half the increase or decrease will be reckoned since, for the reasons stated in the White Paper, only half the cost is taken into account in making up the basic price for milk. This would mean an increase or decrease of 6d. per cwt. on the ration of 33 cwt. or 16/6 in all equivalent to .38d. per gallon of milk.
Will the Minister say what is the minimum increase or decrease that will be taken into account?
.1 of a penny.
Will the Minister carry out the experiment of feeding a cow for the winter on the basis of that White Paper and see what kind of an animal she will turn out in the spring and how many gallons of milk she will give in the following year?
asked the Minister for Agriculture if he will state, with reference to the price of 5.12d. per gallon for feeding stuffs set out in paragraph 18 of the White Paper on Guaranteed Market and Prices of Dairy Produce, whether he has arrived at the conclusion that the balance of 5.47d. per gallon of the average guaranteed price of 10.59d. is sufficient to cover cost of grass, labour, delivery, depreciation of stock, etc., and leave a reasonable margin of profit for the producer; and, if so, if he will set out the calculations on which the decision was based.
In the White Paper referred to it is stated that the average milk price made available to creameries during the current financial year will be taken as the basic price to be guaranteed for the next five years, subject to variations in accordance with changes in costs of milk production. Since the main item likely to show any considerable change during the coming years is food other than grass, the White Paper indicates how much is included in respect of that item in the present milk price. It is not correct to assume, as the Deputy does, that the balance of 5.47d. per gallon, arrived at by deducting the amount included for feeding stuffs (5.12d.) from the creamery milk price of 10.59d. per gallon, represents the amount available for the other items of cost specified in the question. There are obvious credit items which he has apparently overlooked, and if these are taken into consideration it will be seen that the balance is appreciably greater than that stated by the Deputy. For his information I propose to circulate with the Official Report a statement of the items making up the cost of milk production in creamery districts.
The statement is as follows:—
COST OF PRODUCING MILK IN CREAMERY DISTRICTS DURING 1945 BASED ON ESTIMATED COST OF KEEPING A 525 GALLON COW.
|
£ |
s. |
d. |
£ |
s. |
d. |
||
|
1. |
Grazing(allowing 2 acres per cow): |
||||||
|
Rent and rates |
1 |
10 |
0 |
||||
|
Interest on capital value of land |
2 |
10 |
0 |
||||
|
Upkeep of fences, drains, gates, maintenance of fertility, etc. |
1 |
0 |
0 |
||||
|
5 |
0 |
0 |
|||||
|
2. |
Foods other than Grass: |
||||||
|
Roots valued at |
1 |
0 |
0 |
||||
|
Hay, 33 cwt. at 4/11 |
8 |
2 |
3 |
||||
|
Concentrates, 1½ cwt. crushed oats at £1 |
1 |
10 |
0 |
||||
|
1/2 cwt. meat meal at £1 4s.od. |
0 |
12 |
0 |
||||
|
11 |
4 |
3 |
|||||
|
3. |
Labour |
4 |
0 |
0 |
|||
|
4. |
Miscellaneous: |
||||||
|
Interest on capital value of stock |
1 |
0 |
0 |
||||
|
Upkeep of buildings and equipment and depreciation |
0 |
17 |
6 |
||||
|
Herd replacement and depreciation |
2 |
0 |
0 |
||||
|
Other items, e.g., veterinary expenses, transport of milk |
1 |
2 |
0 |
||||
|
4 |
19 |
6 |
|||||
|
5. |
Management and Profit |
3 |
0 |
0 |
|||
|
28 |
3 |
9 |
|||||
|
6. |
Less—Value of Calf |
1 |
10 |
0 |
|||
|
Value of Skim Milk (420 gallons at 2d.) |
3 |
10 |
0 |
||||
|
5 |
0 |
0 |
|||||
|
£23 |
3 |
9 |