asked the Minister for Agriculture whether he is aware that arising out of an announcement made last year to the effect that the price of milk supplied to creameries was to be 1/2 per gallon for the summer and 1/6 for winter, without any percentage for butter fat being mentioned, grave dissatisfaction was caused amongst creamery suppliers, who expected that price to be paid for all milk supplied, when one creamery in Cavan paid suppliers on a butter-fat basis and had differences ranging from 10.5d. per gallon to 16.4d. per gallon in the same month; furthermore, whether in the circumstances he will make an announcement clarifying the position.
Ceisteanna—Questions. Oral Answers. - Milk Prices.
The announcement made in April, 1947, guaranteed average prices of 1/2 per gallon during the months May to October and 1/4—not 1/6—per gallon during the months November to April in respect of milk supplied to creameries. In calculating the production allowance payable to creameries regard is had to the wholesale price of butter and the average fat content of the milk supplied to all creameries, which determines the number of gallons required to produce a cwt. of butter. The differences in milk prices to which the Deputy refers are probably due to the fat content of the milk supplied being much higher in some cases than in others. It would not be feasible to pay a uniform price for milk irrespective of the fat content. It is, therefore, dependent: (1) on the butter-fat content of the suppliers' milk; (2) the efficiency of the creamery management, and (3) the dimension of the milk supplied to the creamery what price will be payable to each individual supplier for his milk.
Mr. O'Reilly
Will the Minister make it clear that it is on the butter-fat content rather than on the price per gallon of milk that suppliers are to be paid?
I should be glad if the Deputy would discuss it with me afterwards. I have spent the greater part of this morning trying to devise a form of words which would make it even approximately clear and that is the best I have been able to hit on so far.