2013년 11월 29일 금요일

About '2 milk'|Wet n Wild 2% Milk and Little Surprises







About '2 milk'|Wet n Wild 2% Milk and Little Surprises








Economists               predict               milk               prices               could               increase               by               as               much               as               $.30               a               gallon.

Some               say               its               supply               and               demand,               coupled               with               higher               feed               prices.

Others               say               it               is               government               manipulation               of               the               milk               business.

I               first               learned               that               the               federal               government               controls               milk               prices               when               I               owned               a               convenience               store.

I               aggresively               protested               the               rise               of               retail               milk               prices               two               years               ago               that               sent               my               customers               to               big               discount               stores               for               relief.

Ignorantly               accusing               our               milk               distributor               of               price               gouging,               I               was               astonished               to               learn               from               our               supplier               that               raw               milk               prices               are               controlled               by               the               federal               government,               and               that               program               ultimately               leads               to               the               retail               price               of               milk.

Political               activists,               watchdog               groups,               and               one               small               Arizona               dairy               farmer               have               set               out               to               change               the               socialist               scheme               of               government               in               milk.
               Most               U.S.

dairy               farmers               operate               under               a               1930's               federal               program               that               was               designed               to               give               small               dairies               a               sure               market               for               their               milk               and               give               consumers               equitable               retail               prices               across               the               nation.

Farmers               who               participate               in               regional               pools               operated               by               federal               or               state               governments,               deliver               raw               milk               to               cooperatives               or               food               processors.

The               farmers               get               a               guaranteed               price               for               the               raw               milk               whether               it               ends               up               in               a               jug,               in               cheese,               in               butter,               or               in               ice               cream.

Dairy               farmers               can               opt               to               do               business               outside               of               the               pool,               but               it               is               risky               because               it               might               end               up               with               more               milk               than               it               can               sell.

As               one               small               Arizona               dairy               farmer               learned,               the               risk               of               not               participating               can               also               lead               to               a               losing               fight               with               big               business.
               HOW               DOES               IT               WORK?
               The               government               created               the               Federal               Milk               Marketing               Order               system.

Federal               milk               order               market               administrators               from               the               U.S.Department               of               Agriculture               (USDA)               collect               retail               price               information               from               selected               cities.

The               data               is               used               to               answer               questions               from               Congress               and               others               regarding               retail               milk               prices.

Data               computed               for               the               Consumer               Price               Index               is               also               used               by               regulators.

The               differential               pricing               by               regions               and               the               price               "classing"               of               milk               (fluid,               cheese,               butter,               ice               cream,               etc.),               although               helpful               in               the               1930's,               is               now               hurting               farmers               and               consumers.

A               study               done               by               the               USDA               acknowledged               that               "dairy               programs               raise               the               retail               price               of               milk."               According               to               Citizens               Against               Government               Waste,               a               watchdog               group,               it               is               estimated               that               these               programs               cost               U.S.

consumers               at               least               $1.5               billion               a               year.

"Rather               than               allowing               commerce               between               dairy               farmers               and               dairy               manufacturers               to               flow               freely,               the               milk               marketing               orders               devise               and               administer               a               raft               of               intricate               regulations               to               govern               the               overall               price               of               milk.

The               regulations               undermine               the               most               basic               free               market               concept               of               negotiating               contractual               agreements               between               buyers               and               sellers,"               says               Tom               Schatz,               President               of               Citizens               Against               Government               Waste.
               WILL               IT               CHANGE?
               In               early               2006,               private               dairy               companies               and               cooperatives               petitioned               the               USDA               to               consider               adjustments               in               the               calculatons               for               "make               allowances",               which               relate               to               the               cost               of               turning               raw               milk               into               finished               product.

In               January,               2006,               the               USDA               conducted               four               days               of               hearings,               where               most               of               the               evidence               suggested               that               the               current               formulas               are               outdated.

In               June,               2006,               the               USDA               said               it               was               putting               off               a               decision               to               make               adjustments               -               a               decision               that               would               likely               cost               manufacturers               as               much               as               $26               million               per               month.

The               USDA               planned               to               reconvene               in               September               of               2006               (obviously               to               wait               for               the               congressional               elections),               thereby               delaying               any               implementation               of               new               allowances               until               well               into               2007.

Schatz               declares               this               is               just               another               demonstration               of               why               "the               federal               government               should               have               no               role               in               the               production,               dissemination,               or               manufacture               of               milk               or               dairy               products               in               this               country."
               ONE               ARIZONA               DAIRY               FARMER               FILES               FEDERAL               LAWSUIT
               Hein               Hettinga,               who               owns               a               small               Arizona               dairy               farm,               took               on               big               business               and               lost.

Hettinga               was               competing               for               retail               sales               against               Arizona's               largest               milk               company,               Shamrock               Foods.

Hettinga               chose               not               to               participate               in               the               federal               government               program               and               the               United               Dairymen               of               Arizona               (UDA)               complained               that               he               was               affecting               the               USDA               price-setting               formula               causing               lower               returns               for               other               dairies.

The               UDA               cooperative               handles               85%               of               the               state's               milk.

Powerful               lobbyists               paid               off               some               politicians               to               have               a               law               passed,               which               in               effect,               required               Hettinga's               Sarah               Farms               to               participate               in               the               program.

He               now               has               to               pay               his               competitors               $400,000               a               year               to               stay               in               business               -               a               sum               that               cripples               his               operation.

According               to               some               activists               who               claim               sarcastically,               this               is               why               we               need               socialism               -               to               keep               big               companies               big               and               keep               the               little               guy               down.

Hettinga               has               filed               a               federal               lawsuit,               alleging               that               the               so-called               Milk               Regulatory               Equity               Act               of               2005               is               unconstitutional.
               As               I               write               this,               still               in               disbelief               two               years               after               learning               the               government               controls               milk,               I               stand               up               and               salute               the               little               guy               in               America.

I               support               all               the               moms               and               pops               struggling               to               just               have               a               small,               happy               life               against               the               most               giant               of               odds.

Hettinga               should               command               all               of               our               respect               for               his               comment               to               The               Washington               Post               last               year,               "I               still               think               this               is               a               great               country.

In               Mexico,               they               would               have               just               shot               me."
               So,               when               you               go               into               the               store               this               summer               and               see               milk               prices               up               by               as               much               as               $.30               a               gallon,               and               cheese               and               ice               cream               prices               up               also               -               please               don't               blame               the               store               owner,               or               the               dairy               distributor,               or               even               higher               gas               prices               and               feed               prices.

Just               call               your               congressperson               and               demand               that               government               get               out               of               the               milk               business.






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