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Pricing and Policy Problems in the Northeast Fluid Milk Industry

Published online by Cambridge University Press:  15 September 2016

Ronald W. Cotterill
Ronald W. Cotterill*
Affiliation:
Department of Agricultural and Resource Economics
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Abstract

This article documents the need for reform of milk pricing in the Northeast. The New York price gouging law can be recast as a fair share law. This new milk policy “kills two birds with one stone.” It corrects regional inequities in raw milk pricing by reforming the pricing of milk at retail by limiting and redistributing excessive retail margins to farmers and consumers. The fair share policy relieves allocative price inefficiency, improves the performance of the federal milk market order pool, and improves the general performance of the Northeast dairy farming and fluid milk industries.

Keywords

market powerbargainingover-order premiumsfair share pricing
Type
Invited Papers
Information
Agricultural and Resource Economics Review , Volume 35 , Issue 2 , October 2006 , pp. 239 - 250
Copyright
Copyright © 2006 Northeastern Agricultural and Resource Economics Association 

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