Milk is a wholesome food that provides essential nutrition for children and adults. In our opinion, dairy compacts hurt consumers who drink milk, especially lower income individuals and families. Our opinion is based upon the experience of the Northeast Interstate Dairy Compact that was created in July 1997. Milk Demand Declined As a result of higher milk prices, consumption of fluid milk in the Northeast has declined. The Nielsen analysis simply confirms textbook economic expectations that higher prices lead to decreased milk consumption.
Higher prices encourage milk consumers to purchase other beverages.
The exemptions do not cover food stamp recipients and other essential government nutrition programs for children and the elderly. New England states' Child and Adult Care Food Program and the Nutrition Program for the Elderly have had to absorb nearly one-half million dollars in higher milk prices since the Compact went into effect. If Congress approves the proposed compact legislation, those who depend most upon milk as a low-cost, accessible nutritious food will continue to feel the impact. Among our customers, milk is the number 2 beverage choice, with soda pop leading the way. We sell a lot of soda, but I would readily concede it is not a nutritional food.