An Act Concerning the Fair Pricing of Milk

Ronald Cotterill (), Adam Rabinowitz and Li Tian
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Li Tian: University of Connecticut

No 39, Issue Papers from University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy

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).

Keywords: milk; dairy; pricing; price collar; Connecticut (search for similar items in EconPapers)
Pages: 89 pages
Date: 2003-05
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