Dairy

A.C. = w₀L_hS_f Labour ✦112 Shadow wage w₀ ✦16 an hour × L_h 3 hours per tonne × skill factor S_f 2.34 S_f for industry: training ✦45,000 against ✦45,000, queue 20 hours against 48 + Σ q_iP_irλ_i Materials ✦18.1 Maize: 100 kg × $100/t × r 1.5 × border 1.21 × λ 1.00 = ✦18.2 + (D + M_o)α_e Capital ✦131 Depreciation and maintenance ✦90 per tonne × financing 1.45 × waste factor α_e 1.00 Financing is interest at 6% on equipment's average value over a 15-year life. α_e is 1.00 when maintenance hours and defects are on target. + Ep_e Energy ✦10 E 200 kWh per tonne × p_e ✦0.05 per kWh = ✦271

A.V. = rP*_world Accounted value ✦1,084 per tonne World price $750 per tonne less freight and insurance 3.67% = P* $722 × r 1.5 crowns per US dollar Export parity: the price at the Commonwealth border for a good it sells abroad. Observed abroad, not calculated: a wasteful producer raises only its own cost. = ✦1,084

Revenue = A.V. × Q Accounted revenue ✦1.84 bn p.a. Domestic: 1.55 million t × ✦1,084 = ✦1.68 bn Exports: 154,600 t × ✦1,084 = ✦168 m = ✦1.84 bn

Surplus = (A.V. − A.C.) × Q − levies Accounted surplus ✦1.36 bn p.a. Revenue ✦1.84 bn − cost ✦271 × 1.7 million t = ✦1.38 bn Export charges ✦25.1 m: 15% of export revenue (federal levy and permit fee) Distributed 40% to reinvestment, 20% to the municipal aggregate and 40% swept to the Treasury. = ✦1.36 bn