asked the Minister for Agriculture if in fixing the minimum price to producers for milk he accepted the recommendations of the District Milk Boards of Dublin and Cork, and, if not, whether he will state (a) why those recommendations were not accepted; (b) why the price fixed for the month of April was substantially below the winter price; and (c) if he will explain the making of five variations in the price during the year.
Ceisteanna—Questions. Oral Answers. - Price of Milk.
The recommendations of the Dublin and Cork Milk Boards regarding minimum prices to producers for milk in 1948-49 were not, in my opinion, justified by a corresponding increase in production costs, and I did not, therefore, accept them. I consider that the prices which I have fixed allow a reasonable margin of profit to those producers who employ efficient methods of production. The price fixed for the month of April lies between the winter and the summer price and takes account of the fact that normally at some stage of the month costs of production are lowered in consequence of the cows being put out on grass. The prices have been fixed at different levels for different months in order to give an average price to the producer who contracts to supply milk all the year round. In varying the price from month to month the aim is to bring the summer price somewhat lower and the winter price somewhat higher than it might ordinarily be, so that the producer who maintains his supply throughout the year will receive a reasonable return for his labour. On the other hand, the producer who concentrates on summer milk production only will not find the business so remunerative.
Is the Minister aware that there is general dissatisfaction amongst the producers in regard to the prices fixed? Is he also aware that, while producers do not object to a variation in the winter and the summer, they think that five variations only make for confusion? They are of the opinion that the number of variations should be reduced. There is a strong feeling amongst producers that April is the most expensive month in which to produce, or it is at least as expensive as any of the winter months.
The Deputy will bear in mind that the price variations and their number are justified by my desire to favour the man who remains in milk production all the year round and, if the case can be made to me that that number of variations does not so favour him, I shall very gladly consider altering the number of categories of months in respect of which price alterations take place. In regard to the view that the milk producers are alleged to hold, that the production of milk at present prices is uneconomic, whenever I have discussed that with them, the milk producers have carefully avoided the topic of calves and, as all their cows have calves like other cows, I think it is relevant to the discussion as to the price obtainable for calves now as compared with the price obtainable for calves 12 months ago.