Aug 30, 2004
Consumers are being gouged with very high milk price in some places, inching up on four dollars a gallon.
The milk industry and the grocery stores tell us it's a matter of supply and demand. Well, the supply was fine until the demand for more profits took over.
The National Milk Producers' Federation, representing those 60,000 producers who supply the majority of the nation's milk, has since last October deliberately decreased the amount of milk going onto the market, in order to drive prices up. The Federation's program targeted a reduction of 4.6 billion pounds in the milk supply.
Going for their own cut of the action, groceries pushed their prices up on top of the producers' hikes. In New York State, for example, the Attorney General's office found that 30% of stores were charging more than 200% mark-up over the price that they paid to milk producers.
It's only "supply and demand" because the supply is manipulated, and the demand is for workers to hand over their wallets.