asked the Minister for Agriculture if he is aware that the price paid by creameries, the property of the Dairy Disposals Board, for milk delivered by the producer was less than one penny per gallon for the month of March over that for the previous month of February, while at the same time, the supplier was charged 4d. extra on each lb. of butter purchased on and after the 1st March, 1953; and, if so, whether he will state where such profits go when not handed back to the producer by way of an increase in the price of milk.
Ceisteanna—Questions. Oral Answers. - Price of Milk.
Mr. Walsh
It would be invidious to compare the price paid for milk by any creamery in any two individual months and particularly so in the case of February, 1953, where for approximately half of the month little if any milk was supplied by producers to creameries. Milk prices at any creamery may vary from month to month depending on a variety of factors including the average fat content of the milk supply generally, overhead and other expenses for the month, adjustment for either profits or losses incurred in previous months, etc. If, therefore, the Deputy wishes to examine critically the milk prices paid by any particular creamery, it would be unfair to that creamery to apply the examination to a period of less than a complete season.
Could the Minister explain why the Dairy Disposals Board creameries in question paid a lower price than other creameries during the particular month mentioned in the question?
Mr. Walsh
I have no evidence that the Dairy Disposals Board creameries paid a lesser price than othercreameries. The price paid in the month of March for milk supplied in February is dependent on many factors—overhead expenses and the quantity of milk supplied to the creamery. All these factors must be taken into consideration before the price is fixed for the milk delivered in the creameries in the month of February.
Am I to take it then that the operation of the Dairy Disposals Board creameries during the month of February was much heavier than in other creameries, resulting in the fact that they had to lower the price in order to meet the overheads the Minister referred to?
Mr. Walsh
The evidence is that many creameries in the country paid a lesser price for March milk than for February milk, due to the fact that their overhead expenses were higher proportionately than they were in February. It is because of the higher costs for the manufacture of butter, for instance, that the lower price is paid.
There is no fixed price for milk.