Posted by John in La on February 09, 2014 at 05:46:47 from (96.33.136.54):
In Reply to: Dairy farmers posted by greg oliver on February 09, 2014 at 04:22:49:
First off you can not compare the price of milk in the store and the price of milk paid to farmers because they are dogs of a different color.
This is because the price dairy farmers are paid for their milk is effectively set by the federal government. Historically, the government has set the farm-level price of milk at or near the cost of production, as a means of encouraging efficiency in the production of milk. With corn; land; fuel; ect prices were they are $23 milk is cheap.
On the other hand bottling plants and stores can charge what the want since the milk commission retail price controls went out the window years ago. I can remember reading a few years ago about some northeast states (Conn; NH; Mass) wanting to bring back retail price controls not to raise the price of milk but rather to try and stop price gouging.
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