Vermont Milk Commission Issues Proposed Order to Establish a "Retail Fluid Milk Premium"
Hearing Scheduled for September 9, 2008
The Vermont Milk Commission has issued a proposed Order to establish a Retail Fluid Milk Premium, and scheduled a hearing on the proposed Order for September 9, 2008, 9:00 a.m. The hearing will be held in Room 11 of the Vermont State House.
The formal Notice of the proposed Order includes the following summary statement:
Summary Statement of the Matters at Issue:
The proposed Order would establish a retail fluid milk premium for fluid or beverage milk products sold at retail within the state of Vermont, subject to certain exemptions. The proposed premium is primarily intended to interrupt the upward "ratcheting effect" on Vermont retail milk prices caused by the volatility in federally regulated minimum fluid milk prices. The proposed premium is further intended to signal the wholesale and retail sectors of the Vermont fluid milk marketplace to return to Vermont producers a portion of the surplus profit margin present in at least the dominant, chain store segment of the retail sector. The proposed Order's correction of the present "ratcheting effect" in the Vermont milk marketplace is thus intended to combine long-term stabilization of consumer prices and marginal enhancement of producer prices, without increase in consumer prices."
The formal Notice of the proposed Order includes a summary and explanation of the proposed retail fluid milk premium, proposed technical language for administration of the proposed premium regulation, and a copy of the Commission's procedural rules that will govern the conduct of the upcoming hearing. The full text of the Proposed Order may be found at http://www.vermontagriculture.com/milkcommission.
"The Commission's issuance of the proposed Order serves to initiate a formal discussion about the need for regulatory intervention in the Vermont milk marketplace." commented Roger Allbee, Secretary of the Vermont Agency of Agriculture, Food and Markets. "The upcoming hearing will allow the Commission to develop a formal record to be used as the basis for making this regulatory decision. We invite everyone to participate in the upcoming hearing process."
The Commission invites oral and written comment on the proposed Order at the September 9 hearing. Interested persons are also invited to submit written comment independent of the hearing. Written comment submitted to the Commission must be postmarked not later than September 24, 2008.