Wow selling milk too cheap

[RPMDAD]

La. Govt. at its finest. With all the prblems in that state they go after cheap milk seller.


Louisiana stops sale of cheap milk at market

A Louisiana supermarket was forced to yank its low-cost milk special after state auditors objected to the price.

Fresh Markets in Perkins Rowe was selling milk for $2.99 a gallon as part of a weekly promotion deal, but Louisiana requires that retailer markups be at least 6 percent above invoice and shipping costs, The Advocate reports.

Read more: Louisiana stops sale of cheap milk at market | Fox News

 

[LostNFound]

Its against the law in most if not all states to sell milk below cost. Kinda like gas. Not a popular fact but a fact none the less.

 

[vraiblonde]

Why is it against the law to sell milk below cost?

EDIT: found it!
Milk Licensing & Regulation

Unfair Milk Sales Practices Act.

This is a strong candidate for "The Dumbest Thing I've Ever Heard".

 

[RPMDAD]

Its against the law in most if not all states to sell milk below cost. Kinda like gas. Not a popular fact but a fact none the less.

Wow, i never knew that.

 

[red_explorer]

Its against the law in most if not all states to sell milk below cost. Kinda like gas. Not a popular fact but a fact none the less.

Whats even sicker....Conventional dairy farmers only get $18 per hundred weight for that milk... Organic get $36. But...a gallon of milk weights 8.5 lbs. 100/8.5 = 11.5 gallons. If a gallon of milk is selling for $4 each.... (not sure because I havent bought whole gallons in a while) thats $44 plus. And the farmer who has done all the work, gets $18. Un Freaking Believable.

 

[somdfunguy]

I pay $2.87 a gallon for milk

 

[tommyjo]

Why is it against the law to sell milk below cost?

EDIT: found it!
Milk Licensing & Regulation

Unfair Milk Sales Practices Act.

This is a strong candidate for "The Dumbest Thing I've Ever Heard".

I thought you ran a business? You don't understand unfair practices?

If a competitor is bigger than you or similar size but with a larger cash reserve...all they have to do is sell below cost and absorb the losses until they put you out of business. The more competitors they force out of business, the more they control the market, the more thay can force prices up.

Geesh...

BTW...this is no different than US govt filing complaints against chinese steel industry for dumping steel on the US market at prices below cost.

 

[tommyjo]

Whats even sicker....Conventional dairy farmers only get $18 per hundred weight for that milk... Organic get $36. But...a gallon of milk weights 8.5 lbs. 100/8.5 = 11.5 gallons. If a gallon of milk is selling for $4 each.... (not sure because I havent bought whole gallons in a while) thats $44 plus. And the farmer who has done all the work, gets $18. Un Freaking Believable.

Actually the cow does all the work of converting the grass to milk....

And, um, every product you buy costs more than the basic commodity it came from.

The farmer is getting $1.80 per gallon...according to the other poster that same gallon sells for $2.87 in the store.

So $1.07 is the cost of preparing, packaging, shipping, storing and selling that gallon of milk.

 

[MarieB]

I thought you ran a business? You don't understand unfair practices?

If a competitor is bigger than you or similar size but with a larger cash reserve...all they have to do is sell below cost and absorb the losses until they put you out of business. The more competitors they force out of business, the more they control the market, the more thay can force prices up.

Geesh...

BTW...this is no different than US govt filing complaints against chinese steel industry for dumping steel on the US market at prices below cost.

I was just going to say, China does this all the time.

But in this case, it's only one item out of many items carried. Do they also control the pricing of other products?

 

[vraiblonde]

I thought you ran a business? You don't understand unfair practices?

I understand free market. Yeah, babe, I run a business.

Geesh.

 

[MarieB]

I also didn't realize how many pricing controls there are on milk, at the state and federal level. I was really only aware of the subsidies to farmers.


Interesting article

as Congress considers a major farm bill in coming weeks, it has an opportunity to cut wasteful subsidy programs and cut food prices for average families. Dairy programs would be a great place to start, since milk prices have soared in recent months.

Consider the illogic of federal dairy policies. They jack up milk prices for millions of families at the same time that other programs, such as food stamps, aim to reduce food costs. And although federal law generally prohibits cartels, a federal dairy cartel enforces high milk prices. If Coke and Pepsi got together and agreed to hike prices, they would be prosecuted. But with milk, raising prices is government policy.

The trouble started in 1930s with “marketing order” regulations. Those rules set minimum prices that dairy processors must pay to dairy farmers in 10 regions of the country. Today, about two–thirds of milk is produced under federal marketing orders, and most of the rest is produced under similar state schemes such as California’s.

The Madness of American Milk Prices | Cato Institute

 

[PsyOps]

I thought you ran a business? You don't understand unfair practices?

If a competitor is bigger than you or similar size but with a larger cash reserve...all they have to do is sell below cost and absorb the losses until they put you out of business. The more competitors they force out of business, the more they control the market, the more thay can force prices up.

Geesh...

BTW...this is no different than US govt filing complaints against chinese steel industry for dumping steel on the US market at prices below cost.

Oh crap, that crazy thing called competition. Why don't we implement the same thinking in sports? We have the same NFL teams dominating year after year. It's just not fair.