Milk Pricing Problems and Solutions: An Essay on the Need for New State Level Milk Price Regulation in the Northeast, with Special Attention to Connecticut Substitute Bill No. 5642

Before one can talk about solutions to the “milk pricing problem” one needs to identify its many dimensions and then target solutions to specific aspects of the problem. Is the problem one of supply outpacing demand on the national level? Is it the importation of milk components and products from other countries? Is it the importation of dairy replacement heifers from Canada? For the Northeast is it the loss of the class 1 fluid differential relative to the upper Midwest in the federal milk market orders? Does pooling of milk from distant producers on the Northeast market order lower Northeast farm –gate prices? Does depooling in other market orders, when manufacturing milk prices rapidly increase, disadvantage the Northeast? Is the problem an increasing imbalance of power between Northeast dairy farmers who bargain via their cooperatives with processors and retailers in milk marketing channels? Specifically, is it an increase in market pricing power by retailers that results in higher consumer prices and lower price premiums for farmers?

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 Record created 2017-04-01, last modified 2018-01-22

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