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Dairy Facts 2016
 
 

Consumers Fear Supply Controls Could Raise Dairy Product Prices

Oct 19, 2011

The Consumer Federation of America, representing more than 300 non-profit consumer organizations, sent a letter on Monday to congressional agriculture leaders and members of the Joint Committee on Deficit Reduction, urging them to avoid any options that would increase milk costs for consumers. CFA voiced concerns about the effects of the Dairy Market Stabilization Program included in Representative Collin Peterson's (D-MN) legislation, H.R. 3062, which would mandate federal milk-supply control.

“The Dairy Market Stabilization Program, included in H.R. 3062, is specifically designed to increase milk prices,” CFA said in the letter. “This means that consumers would pay higher prices for milk and milk products than they otherwise would.”

CFA also said that any increase in milk costs would hit low-income consumers the hardest, because they would be forced to spend a higher percentage of income on food. The additional costs could strain the federal budget as well with increases to the costs of the Supplemental Nutrition Assistance Program (SNAP), the National School Lunch Program and the Special Supplemental Nutrition Program for Women, Infants and Children (WIC).

CFA expressed additional concern that supply-control programs could have a negative impact on consumer nutrition. Referencing studies showing that that milk consumption declines as prices rise, CFA added, “Federal nutrition guidelines encourage increased calcium consumption and milk is a primary way that consumers obtain calcium in their diets.”

The consumer groups join IDFA and other organizations in their call for omitting government-mandated supply-control programs from the budget package proposals. See "Ag Leaders Propose Budget Cuts; IDFA Says Omit Supply Control."

For more information, contact Ruth Saunders, IDFA vice president of policy and legislative affairs, at rsaunders@idfa.org.

 

 

 
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