§ Mr. C. Smithasked the Minister of Food what information is in the possession of his Ministry with regard to flour Milling costs; whether he will state the average cost of milling a sack of flour during the latest convenient period; how that cost is divided betweén production costs, sales costs and distributing costs: and whether he has any information about the average rate of profit per sack of flour milled.
§ Mr. StracheyThe latest convenient period in respect of which this information can be given is the year ended 31st August, 1943. Even in respect of that year returns have not yet been received from certain millers but the figures given represent some 85 per cent. of the industry. Subject to this qualification, the average cost of milling, selling and delivering a sack of 280 lb. of flour in this year was 8s. 1d., divided as follows:
Direct Production Costs excluding Wheat and Intake Costs 3s. 10d. Selling Costs, including Travellers' Salaries Discounts, Bad Debts, and advertising 1s. 1d. Delivery Costs 1s. 9d. Administrative Costs 1s. 5d. Total Average Cost 8s. 1d. The above figures are subject to the fol-following further qualifications:
(a) They are the average costs of some 200 mills of varying sizes and functions and there are considerable variations between individual costs.
(b) It is not possible to separate the costs of flour from the costs of wheat-feed and the figures given above represent the costs of the joint operation.
The average rate of profit per sack of flour milled is 2s. 4½d. This profit varies from miller to miller according to their varying prewar profit standards.