 A Fair Share Law for Connecticut and Other Northeast Dairy States: A State Level Solution to Retail Milk Price Gouging and the Dairy Farm CrisisRonald Cotterill No 169386, Issue Papers from University of Connecticut, Food Marketing Policy Center Abstract: Price gouging is commonly perceived to be a consumer issue, however it also is a farmer issue. Currently, retail fluid milk prices in New England are as much as a dollar per gallon above supply costs (Cotterill et al. 2002; Mohl 2002). Yes, consumers are paying too much; but farmers are also receiving too little. They are experiencing the lowest milk prices in 25 years. Similar problems have persisted in the Northeast dairy industry for at least a decade. In 1991 the New York State Legislature passed two laws that aim to redress the pricing power imbalance that farmers and consumers face. We will discuss and compare those laws to the law proposed here. In New England, but for the Dairy Compact era (1997-2001), there is little relationship between raw farm level and retail consumer level fluid milk prices (Wang et al. 2001, Cotterill and Franklin 2001, Cotterill et al. 2002). It is especially true that when the raw fluid milk price has dropped, retail prices have not fallen in a commensurate fashion. Keywords: Agricultural and Food Policy; Demand and Price Analysis (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ags:ucofmi:169386 Access Statistics for this paper More papers in Issue Papers from University of Connecticut, Food Marketing Policy Center Contact information at EDIRC. |
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