Interventionism in milk production has lessons for all Return to The New Australian How to deregulate milk and still milk the consumer By Gerard Jackson No. Politicians are marvel to behold, though rarely something we would wish as role models for our children.
Milk is one of man's oldest commodities and is considered a basic food.
However, most Victorian dairy farmers have woken up to the painful fact that 'orderly marketing' means protection for the inefficient against the more efficient. And as Victorian dairy farmers have the enviable reputation of being among the world's most efficient milk producers, so-called 'orderly marketing' means that the other state's less efficient producers are getting a free ride on the backs of Victorian producers and the nation's consumers. Because the regulations are designed prevent this kind of 'cutthroat competition' by controlling interstate milk sales. In a sense, the other states have used regulations to set up tariff-like barriers against Victorian producers. This protects, for example, Queensland's inefficient milk producers at the expense of consumers, not just by forcing up milk prices but by also misallocating much needed capital.