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Abstract

The proposed Connecticut milk pricing law for milk establishes two price collars. The general concept is as follows. Wholesale fluid milk prices will be limited to no more than 140% of the raw fluid price, and retail prices will be limited to no more than 140% of the wholesale price. These 140% rates are not price ceilings. They are price collars. The proposed law does not dictate what wholesale and retail prices shall be, it only requires that the relationship between raw fluid prices, paid by processors, wholesale prices and retail prices honor the price collars(Cotterill and Rabinowitz, December, 2002).

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