State stops sale of cheap milk


#1

Land of the free…

For Lafayette stockbroker Kenneth Daigle, buying a gallon of milk is no longer the bargain it used to be on Tuesdays at Fresh Market.

The upscale supermarket chain yanked milk from its $2.99 once-a-week promotion after a state auditor objected to the low price. A gallon of whole milk was priced at $5.69 Thursday at the Fresh Market in Perkins Rowe.

State stops sale of cheap milk | News | The Advocate — Baton Rouge, LA


#2

“Loss Leaders” have been a sales tactic since the second human made selling things to others a significant part of how they made their living. It takes an ignorant government bureaucrat to think they can stamp out such an ancient sales tactic.

On a quasi-related note, I think milk subsidies, like other farm subsidies, should phased out over 3-5 years.

“My name is PeteS in CA, and I am a Half-bertarian. …”


#3

Well, as much as we get right down here, every once and a while something has to get jacked up.


#4

The upscale supermarket chain yanked milk from its $2.99 once-a-week promotion after a state auditor objected to the low price.

“Dear state auditor: Please remind me how the price that I charge for the selling of MY merchandise in MY store is any of YOUR expletive deleted business.”


#5

A little info on dairy subsidies, the future of them, and may be of interest to you:

Since the Great Depression, the federal government has meddled with the market for milk in the name of “helping dairy farmers,” ranging from outright taxes to incentives for slaughtering cows. In 2002, Congress embarked on a manipulative system whereby the government artificially inflates milk prices by purchasing and warehousing items such as cheese and butter. It also concocted the Milk Income Loss Contract program, which pays dairy farmers directly every time the price of milk falls below what the government believes the market will bear in Boston, Massachusetts (!). According to the Congressional Research Service, in 2009 the federal government spent more than $1.3 billion to support the industry through the MILC program and other dairy support programs.

This year, lawmakers admitted that the complex web of direct payments and pricing cartels for dairy ought to be ended. But in true Washington fashion, they’re proposing to replace it all with something that’s little better — the Dairy Market Stabilization Program. Proponents of this scheme, which allows the feds to buy up “surplus” products, offer subsidized margin insurance against price drops and penalize participating farmers for overproducing, claim that this time, they’ve hit upon the right formula. Unfortunately, the mix is still toxic.

snip

Of equal concern to our two organizations is DMSP’s effect on taxpayers, which is why we created a website at Save Your Milk Money to alert citizens to the scheme. For example, higher dairy prices will put increased pressure on federal nutrition programs such as food stamps (already at record-high participation levels) and federally subsidized school meals programs, which in 2011 cost taxpayers $13.2 billion.

Read more: Opinion: Dairy market stabilization plan is bad formula - Tom Schatz and Pete Sepp - POLITICO.com


#6

Kinda like China charging less for steel than it costs them to make. No problem with that…right Allentown?? :smiley:


#7

[quote=“PeteS_in_CA, post:2, topic:37982”]

“My name is PeteS in CA, and I am a Half-bertarian. …”
[/quote]:coffee_spray:


#8

And the cost of union labor had absolutely nothing to play into the equation did it?


#9

Union wages makes OUR steel more expensive “all other things being equal” and OUR competitiveness is OUR issue which WE can remedy if WE so choose. . BUT that is not the question here. The question is IF China is selling steel below ITS actual cost of production in order to corner the market and destroy our domestic market in order to gain a monopoly…should WE do anything about it…Or should we let them just charge and do what they want as you suggest with the grocery store milk?

Even better…let’s suppose that they also add a tariff to our subsidized agricultural goods when we try to export them so we don’t undercut their farmers with our cheap foodstuffs. Still all fair??


#10

[quote=“Cam, post:9, topic:37982”]
Union wages makes OUR steel more expensive “all other things being equal” and OUR competitiveness is OUR issue which WE can remedy if WE so choose. . BUT that is not the question here. The question is IF China is selling steel below ITS actual cost of production in order to corner the market and destroy our domestic market in order to gain a monopoly…should WE do anything about it…Or should we let them just charge and do what they want as you suggest with the grocery store milk?

Even better…let’s suppose that they also add a tariff to our subsidized agricultural goods when we try to export them so we don’t undercut their farmers with our cheap foodstuffs. Still all fair??
[/quote]So you’re good with bureaucrats setting the price for milk? Really? And you’re using a protectionist argument regarding steel, never mind its detriment to China’s economy, to support it?


#11

We have so many problems and this is what we focus on now? A gallon of milk in a store. Our government is awesome.

As for the steel thing, what do you propose Cammy?


#12

Every bit of government intrusion, no matter how small, should be a HUGE concern to all of us. After milk, what’s next? The multi-billionaire liberal dimbocrap mayor of NYC is a prime example of a bureaucrat putting his nose up someone else’s business. Bloomberg is worth over $23 billion dollars. Where is the outrage over his wealth??? Why is HE not sharing in HIS wealth??? He’s too busy dictating what size soft drink New Yorkers are allowed and hiding baby formula from new mothers in hospitals in order to “encourage” breast feeding. These are not small matter. They chisel away at our rights as citizens.


#13

I think BoP was saying the same kind of thing.


#14

All subsidies came about as vote buying or kick back for campaign contributions, in either case it’s bribery under another name.

Long ago politicians built loop-holes for themselves to legally accept bribes. As long as they jump through the right hoops, they get away with it, but ruffle the wrong feathers and miss one hoop, and look out, they’ll turn on one of their own like a pack of wild hyenas to make an example for the public to see how ethical they are. The hypocrissy is so disgusting! Every damn one of them should be hung by the neck slowly until dead, including the Chief Executive Officer!!!

And they want to take our guns? They should be terrified of us!

And Moderators, please don’t censor me, this is really how I feel and I demand my 1st Amendment Rights.


#15

Natstew, the 1st Amendment doesn’t apply to discussion boards. :howler:

Other than that, I fully agree with your statement.


#16

Yeah, I knew that already, just threw it in for effect.
Thanks


#17

Bureaucrats don’t set the price for milk. They simply say you can’t sell it below cost. (I DO NOT agree with the 6% profit margin.)
YES…I SUPPORT putting punative tarriffs on countries which try to destroy our industries and jobs though subsidized industries selling below cost. Yes I support removing countries from our “most favored nation” trade status when they put up barriers to OUR products…(sold at or above actual cost).
I support FAIR FREE TRADE…not free trade. One of my points of departure with utopian libertarian views.


#18

See above Bully! :smiley:


#19

That’s utter BS! They most certainly DO! They set the price for what dairy farmers may MAKE, and they set the price for what tradesmen purchasing the milk may charge. If that’s not “setting the price for milk”, I don’t know what is.
Add to that, that the gov’t stores OVERsupply of milk products to purposely cause phoney shortages, and what else would you call than the “government setting prices?”

They simply say you can’t sell it below cost. (I DO NOT agree with the 6% profit margin.)

And that’s not setting prices. <-if the sarcasm isn’t obvious, it ought to be.->

YES…I SUPPORT putting punative tarriffs on countries which try to destroy our industries and jobs though subsidized industries selling below cost. Yes I support removing countries from our “most favored nation” trade status when they put up barriers to OUR products…(sold at or above actual cost).
I support FAIR FREE TRADE…not free trade. One of my points of departure with utopian libertarian views.

This is anything BUT "FAIR free trade."
Dairy farmers are going BROKE due to government subsidizing. And the (don’t go into shock here) the UNINTENDED CONSEQUENCE is poor dairy farmers with people who don’t know they’re paying actually paying $8/gallon via taxes, but the dairy farmers never see it!


#20

I am referring to the LOCAL law not permitting sale of milk (and I assume other goods) below cost. That is done so that big chains can’t come in and squeeze out the little guys with below cost pricing subsidized by their out of state operations…then raise prices once they’ve done so…and move on to the next victims. I have NO problem with the little guys getting beaten by the big guys on a head to head basis. Indeed…I would expect the COST of milk to the big guys would be less so they SHOULD be able to beat the little guys price without violating the law.

I am against agricultural subsidies of all kinds and would kill them all so we are in agreement on that.