Consumer Groups Urge Rejection of Dairy Legislation

November 17, 1999 

Consumers Union and the Consumer Federation of America want Congress to reject any attempts to pass legislation that could enhance dairy producer incomes in many areas of the country and establish dairy compacts throughout the South and New England. The groups call such efforts "anti-consumer, special interest legislation."

Higher milk prices to farmers under both the milk-pricing scheme and through dairy compacts "are passed on to milk purchasers at the retail level," the group say. "Both plans will hit low-income consumers the hardest and will decrease milk consumption at a time when experts are urging Americans to consume more calcium."

There are reports that Congress will pass legislation to extend the Northeast Dairy Compact two more years and a milk-pricing option that is more favorable to many producers than the option included in USDA's final rule on milk marketing order reform. Whether authorization for a southern dairy compact will be included wasn't clear.

The consumer groups say the northeast compact cost New England consumers about $65 million in the first two years of operation and extension will be particularly harmful to consumers.