Depreciation <>! Mat-blurry ami 



This has-been charged ill. tlio rate of ID per rent. per annum. 'Die value of Hutter and 

 Cheese-making utensils has been excluded for this purpose. 



Maintenance of Herds. 



This is a net figure of increase or decrease after taking into account the opening and 

 closing Valuation, Purchases, Sides, Transfers, Heaths, iv.c., 38 shown in Tables B, C, and P, 

 in the Appendix. 



Other Dairy Stock. 



The cost of foods was ascertained separately, hut it was not considered practicable to 

 keep a separate account of the other items of cost. All the transactions relative to Other 

 Pain 7 Stock have accordingly been included in the costs. 



Credit for Manurial Values of Food. 



The manuriul values of all foods, Homegrown and Purchased, have been calculated for 

 England and Wales on the basis of Messrs. Voelcker and Hall's Tables, revised to T.VJO 

 and for Scotland on the basis of the Tables of the Committee appointed under the Hoard of 

 Agriculture for Scotland in 1917, 40 per cent, being added to these figures in order to bring 

 (hem up to date. 



The manurial values'of the large dumber of proprietary foods, not included in these two 

 Tables of Manurial Values, have been calculated according to the chemical contents, on the 

 best information that was available for this purpose. 



The manurial values so obtained have been regarded as gross manurial values, and from 

 this figure a deduction of a certain percentage has been made where necessary for each farm. 

 according to the conditions under which the manure was kept, as reported by the Costings 

 Officers. This deduction left a net manurial value, which is the figure that has been credited 

 in the Cost Statement. 



These gross Manurial Values for (treat Britain amount to L'--">. l s ~> '-'s. Ud. equal to 3'61 

 pence per gallon. The net Manurial Values are 16,787 17s. 9d. equal to 2'38 pence per 

 gallon. 



In the majority of farms the deduction in respect of storage conditions was at the rate 

 of 50 per cent., the average deduction from the gross Manurial Value being about 33 J per cent. 



In respect of straw used for litter, an additional credit has been given at the rate of 

 7s. per ton in respect of its mechanical value. 



Horse Labour. 



Horse Labour carting foods has been charged to foods at a uniform rate of ( .)d. per hour. 



Mtmagmnt and Interest on Capital. 



In arriving at theeost of production nothing has been included in respect of Interest on 

 Capital, while in the great majority of cases no management was paid for, Managers' salaries 

 to the extent of 409 2s. 9d. only having been included. In considering the margin of profit 

 which should be allowed, these two items should be taken into consideration. 



V. EESULTS OF THE INVESTIGATION. 

 COSTS. 



For the purpose of considering the general results of this investigation, it is important 

 that the statement of methods adopted, which have been previously given, should be read 

 with care, and continually borne in mind. For instance, although the cost of labour for 

 Great Britain is 4'51d. per gallon, the labour represented by this charge was not all directly 

 expended upon the dairy cows on the farms. A part of this charge for labour was incurred in 

 respect of the " Other Pairy Stock," but because the accounts have not distinguished between 

 the labour given to dairy cows (in milk and dry) and Other Dairy Stock, the cost is given as 

 one item. 



In the course of future investigations, this may prove to be an important matter, for 

 during this period there is a net charge on the cost of milk, arising from the difference between 

 the cost of food of Other Pairy Stock, and the appreciation of such slock, amounting (with 

 the Home-grown Foods charged at Market Prices) to 11,628, or l'65d. per gallon, and had 

 the cost of labour expended on the Other Pairy Stock been charged directly to these, the total 

 net cost would have been higher, although the total costs would have remained the same 



In arriving at these costs, the Homegrown Foods are charged at the- following average 

 Market Prices, less cost of marketing : 



Per ton. 

 s. d. 



Hay 14 6 5 



Straw 6 13 9 



Boots 252 



