State Milk Regulation: Extent, Economic Effects, and Legal Status

摘要

State resale price regulation, the dominant form of State milk regulation over the years, may raise marketing costs and margins, but does not appear to stabilize retail milk prices. The effectiveness and impact of all types of State milk regulation are highly variable among States and depend largely on the degree of enforcement involved, an aspect of regulation difficult to document and quantify. While the stated legislative objectives of much State regulation have been to ensure an adequate supply of wholesome milk at reasonable prices and to promote stability, the practical result appears to have been to raise income of in-State dairy interests at the expense of milk consumers and out-of-State milk producers and processors.