Kroger is the nation's largest grocery retailer. We operate 2,200 food stores in 31 states. We recently completed our merger with Fred Meyer, Inc. of Portland, Oregon. We also operate 800 convenience stores and 43 grocery and dairy manufacturing facilities. The bill would make the current Northeast Dairy Compact permanent and authorize a southern compact.
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.