Dairy compacts are clearly a restriction of commerce, and, in effect, they impose what amounts to a tariff between states. The Founding Fathers never intended the states to impose levies on imports such as those imposed by one nation on another s goods. Throughout the history of this country, Congress has authorized the creation of interstate compacts. But, except for these dairy compacts, they have all been for the purpose of promoting commerce between states, rather than restricting commerce. I cannot find any precedent for a compact with the express purpose of preventing the sale of products from one state to another.
Interstate dairy compacts represent a threat to the long-term viability of the dairy industry.
The dairy industry must become more competitive in order to benefit from modernization and technological progress and to capitalize on export markets. It must also become more responsive to customer demand, while compacts are a slap in the face to the milk-drinking public. There is no justification for another government-sanctioned layer of regulatory bureaucracy to regionally fix prices. Dairy compacts pit region against region, fracturing the country, and will prevent the industry from making the changes necessary to take advantage of an expanding global marketplace. Compact advocates claim that these artificially high milk prices are necessary in certain regions in order to keep small dairy farmers in business and assure a stable milk supply.