SECTIONAL TRANSACTIONS— M. 441 



properly organised schemes of rural education, such as those suggested by 

 the Agricultural Education Society last year. If it were found possible 

 to arrange them, organised refresher courses, dealing mainly with modern 

 developments, for established dairy farmers would be of great value. 



Discussion of preceding papers (12.0). 



Afternoon. 



Excursion to Messrs. H. Silcock and Sons' Thornton Hall Farm, 

 Thornton-le-Fylde. 



Friday, September 11. 



Discussion on Economic problems of milk production (10.0). 



Mr. C. Law. — Milk production costs on a Lancashire farm. 



Taking as a basis the cost accounts on the writer's own farm, this paper 

 discusses under various headings the principal factors affecting the costs 

 of milk production in East Lancashire. After indicating some of the more 

 important changes that have recently taken place in the methods of milk 

 production, the writer describes his own farm and district, and how the 

 milk is disposed of, and proceeds to discuss the principal costings items 

 under the following headings : rents, changes in proximity values ; labour, 

 machinery employed, family labour, extra labour involved in the production 

 of accredited milk ; feeding costs, recent changes in feeding methods, 

 possibilities of reducing costs by grassland improvement, use of dried grass, 

 etc. ; depreciation, losses due to disease and the part played by feeding 

 and management in disease resistance ; receipts from sales of milk, and 

 discussion of the effect of the operation of the Milk Marketing Scheme. 



Mr. J. L. Davies. — Production of milk for the market (10.20). 



Prof. A. W. Ashby. — Some variations in conditions and cost of milk 

 production (10.40). 



Three factors mainly determine the general level of costs of producing 

 milk : (a) seasonality of supply ; (b) proportion of total food requirements 

 that may be supplied by grass in the form of either pasture or hay ; and 

 (c) the standard of hygienic quality required. But costs of production 

 cannot be separated from methods and conditions of trading in milk, and 

 it appears that the dominant factor in the determination of cost per gallon 

 has been the price realisable by sales from individual farms or from groups 

 of farms in given localities. Prices and costs are both set according to 

 conditions of supply and the most important factor is the ability to obtain 

 from the consumer or user the price necessary to cover the required con- 

 ditions of supply. While there is a temptation to say that prices follow 

 costs, it appears, on the whole, that original causation lies in the markets 

 rather than in the field of production. Farmers have fairly close control of 

 costs of production of milk, and although in this case it may be easier to 

 move upwards than downwards, important adjustments of costs to prices 

 can be made. With farm costs averaging 9 \d. per gallon over the country, 

 individual farms may show variations between 6d. and i8rf. or more 



Q 



