The Northeast Dairy Policy and Prices Summit Meeting

Our recent meeting provided a factual basis for analysis of alternative milk policies. We analyzed the cost of production on farms, in processing, and in retailing. We collected and analyzed prices at the retail, wholesale, and farm level. This exercise gave us a rare glimpse into the distribution of the price paid by consumers among retailers, processors, and farmers. No one at the conference disputed this factual analysis and the conclusions that the farmer’s price is too low in relation to costs, that the retailers net profit margins are excessive, and that consumers, if anything, pay too much for milk in New England. Moreover no one disputed the conclusion that the New York price gouge law contributes to lower retail milk prices when raw milk prices are low. Most conference participants, however, rejected the New York price gouge law as a policy option for New England because they had a strong desire to increase farm prices. The New York law does little for farmers.