(Host) Legislative leaders want to extend their reach to the supermarket dairy case by setting the price that stores could charge for milk.
Lawmakers say the goal is to prevent stores and milk wholesalers from gouging consumers when prices paid to farmers fall.
But opponents say the bill amounts to unnecessary government interference in the market.
VPR’s John Dillon reports:
(Dillon) Lawmakers are frustrated that farmers are squeezed by falling milk prices. But they were also very clear that their bill doesn’t do much to help. Here’s Lamoille Senator Susan Bartlett, who serves on the Agriculture Committee.
(Bartlett) “An obvious question is how is this going to help the farmer? The reality is, it’s not. The goal of this bill is to help Vermont consumers in a time of real crisis.”
(Dillon) The lawmakers say stores charge high prices to consumers, even as prices paid to farmers fall. Senate President Peter Shumlin:
(Shumlin) “The disparity between a gallon of milk that is being paid to the farmer and the price that is paid by the consumer is unconscionable and we want to fix it.”
(Dillon) The legislation picks up on the work by the Vermont Milk Commission. The commission last year decided not to regulate either prices paid to the farmer, or prices charged by stores.
Essex-Orleans Senator Bobby Starr was disappointed that the commission failed to act.
(Starr) “We were thrown off the track. We were put on a rail siding that went to nowhere. So we’re sitting on the siding, up against the bumper, because the administration doesn’t want to deal with this.”
(Dillon) Agriculture Secretary Roger Allbee chairs the milk commission. He said the panel acts like a court of law, and it tabled the proposal for lack of evidence.
(Allbee) “Based upon the record to date, there isn’t any record that supports taking any action that can address the farmers’ side on low milk prices, or the other side in terms of consumer prices.”
(Dillon) But the bill would allow the Legislature to set a maximum amount that stores could charge for milk. Jim Harrison represents the Vermont Grocers Association. He says stores set prices based on the competition and their own business needs.
(Harrison) “Do we manage the price of ketchup next? Do we have sort of fixed pricing? Where’s the opportunity for an entrepreneur to try to differentiate themselves from their competitors?”
(Dillon) Lawmakers said that smaller convenience stores do not appear to be overcharging for milk. They said higher prices are often found at supermarket chain stores.
For VPR News, I’m John Dillon in Montpelier.