12 



Foods. 



The cost of foods is the largest item of cost particularly in the winter time when it is from 

 80 to 90 per cent, of the nett cost. 



The price at which home grown foods are charged in the cost accounts is one of the deter- 

 mining factors. If home-grown foods are charged at cost of production the bare (and lowest) 

 cost of milk is arrived at. If these be charged at market prices, then the cost may include an 

 alement of profit 



Herd Transactions. 



In an investigation of this character where the cost of home-bred cows is not known and 

 valuations are therefore necessary it is difficult to prevent the cost results from being affected to 

 some extent by variations in the market prices, of cows and other dairy stock, as the mind of the 

 valuer is bound to be affected to some extent by the prevailing prices. The Committee have so 

 jar as possible arranged for as conservative a valuation as possible in all cases. 



The average rates per head for cows were as shown by the valuations as follows : 



The above increase was however more than offset by the increased cost of the cows purchased 

 and transferred in to replace cows sold, dead, and transferred out, the nett charge to milk pro- 

 duction for the total year being - 06d. per gallon for Great Britain. Scotland shows a charge of 

 l'72d. as against a credit for England and Wales of "93d. , and when comparing the results of the 

 two countries for any period, the fact that these figures are affected by the valuations should be 

 borne in mind. 



Conditions. 



Local conditions should also be borne in mind when considering the results. It will be 

 noticed that in some districts the winter cost of production was above the average while the 

 summer cost was correspondingly lower, the cost for the whole year being normal. To some 

 extent this may have been due to the variations in the valuations at the close of the winter period, 

 but the special local conditions are the predominating factors. 



The Agricultural Costings Committee desires to again express its thanks for assistance in 

 carrying out the investigation to the co-operating farmers on whose farms the necessary cost 

 records were kept, to the National Farmers' Union, Dairy Farmers' Associations, Agricultural 

 Colleges, Live Stock Commissioners, County Agricultural Organisers, and others; to the Beading 

 University College ; and also to the Institute of Agricultural Economics at Oxford for assistance 

 throughout the investigation and in reporting on the results. 



22nd March, 1921. 



TABLE A. 



SUMMAKY. OF COSTS. 



Summer Period. 



(1st May, 1920, to 30th September, 1920.) 

 (1st May, 1920, to 31st October, 1920.; 



England and Wales. 

 Scotland. 



