State regulators crack down on grocery chain for selling cheap milk

[tangent4ronpaul]

http://dailycaller.com/2013/01/26/st...ng-cheap-milk/

Louisiana state regulators recently cracked down on a supermarket chain’s weekly promotional deal because it was selling milk too cheaply — which violates state law.

The upscale Fresh Markets was selling gallons of milk for $2.99 as part of a weekly promotional deal. Louisiana requires that retailer price markups be at least six percent above the invoice and shipping costs of the product.

“Because milk is a commodity product with regulated costs that are subject to change, at the current cost, due to Louisiana state law, we are unable to honor the $2.99 Tuesday deal for (Fresh Market) milk,” according to a statement from Drewry Sackett of BRAVE Public Relations, who represents Fresh Market. “Because the cost of milk fluctuates, it is possible that we will be able to offer the $2.99 deal on milk again in the future.”

“They can sell it six percent over cost all day long. It’s when they sell it below cost that it becomes a problem,” State Agriculture and Forestry Commissioner Mike Strain told The Advocate.

After getting a complaint about Fresh Market’s promotional deal, Strain’s office sent an auditor to a French Markets store.

At least one Fresh Market shopper was outraged when he found that the state government had intervened to control the store’s milk prices.

“Should we do the same thing with bread? Should we do the same thing with soft drinks?” asked Lafayette stockbroker Kenneth Daigle. “If retailers want to take a loss, so be it.”

-t

[Occam's Banana]

After getting a complaint about Fresh Market’s promotional deal, Strain’s office sent an auditor to a French Markets store.

Gee, I wonder who could've had a reason to complain about it ...

“They can sell it six percent over cost all day long. It’s when they sell it below cost that it becomes a problem,” State Agriculture and Forestry Commissioner Mike Strain told The Advocate.

Oh, pray tell, Herr Kommissar - for WHOM does it become a problem? What's that, Kommisar? No answer? Strange ...

And what about the gap between selling at six percent over cost and selling at cost? Why no mention of that, hmmmm?

Could it be because you don't want people realizing that retailers could reduce their prices below the arbitrary cartel-imposed limit while still making a profit?

Could it be because you want to maintain the illusion that the only options are "public spirited" price controls on the one hand and dirty, filthy, nasty "below cost" "cutt-throat" competition on the other hand?

Naaaah, couldn't be! I'm sure Kommissar Strain is just a selfless public servant dedicated to the "common good" - and not at all a cartel-apologist hack bureaucrat.

“Should we do the same thing with bread? Should we do the same thing with soft drinks?” asked Lafayette stockbroker Kenneth Daigle. “If retailers want to take a loss, so be it.”

*sigh* You'd like to think that someone like a stockbroker might have better sense than this.

This isn't about retailers taking a loss. It's about politically influential cartels (the dairy lobby, in this case) stifling competition and forcing people to pay more for a product than they otherwise would.

Goddam bastards. Land of the Free, my ass.

[Origanalist]

Originally Posted by tangent4ronpaul

“Should we do the same thing with bread? Should we do the same thing with soft drinks?” asked Lafayette stockbroker Kenneth Daigle. “If retailers want to take a loss, so be it.”

Don't they already?

[oyarde]

I can get it for $1.99 , but I do not really use it . Someone needs to break the back on that retard $#@! .

[phill4paul]

Gee, I wonder who could've had a reason to complain about it ...

Yup. In the interest of transparency my we have the name of the offended party?

[Lucille]

Why do they hate the poor?

[oyarde]

Why do they hate the poor?

Not sure , but everyone does.

[Occam's Banana]

Yup. In the interest of transparency my we have the name of the offended party?

You gotta be kidding! That would be, like, journalism, or something ...

[tangent4ronpaul]

Yup. In the interest of transparency my we have the name of the offended party?

Just look at their competitors and I bet you will find them.

-t

[Lucille]

Hard to believe after that evil SOB FDR starved so many Americans with his central planning ag shenanigans, this still goes on. I take some comfort knowing he's in hell, but alas, he's probably pleased the one he created here is still going strong.

http://reason.com/blog/2013/01/27/lo...at-prices-that

In Louisiana, it is illegal to sell milk for too much. It’s also illegal to sell milk for too little. It’s all a bit complicated, so producers are eligible for a milk subsidy.

Last week, state regulators cracked down on a grocery store that was engaging in a “disruptive trade practice,” selling milk at a price that could “injure, reduce, prevent, or destroy competition.”
[...]
It’s hard to see how a once-a-week sale on milk could drive other grocery stores to bankruptcy. But perhaps that’s best left to the Dairy Stabilization Board, which since 1974 has protected consumers from “disruptive trade practices,” “excessive prices,” and “inadequate supply.”

[ghengis86]

I can get it for $1.99 , but I do not really use it . Someone needs to break the back on that retard $#@! .

$1.89 at Aldi yesterday.

How anyone can argue for higher prices with a straight face is beyond me. Or more likely they're just muppet mouthpieces for the oligarchs.

[Origanalist]

^^^^
It’s hard to see how a once-a-week sale on milk could drive other grocery stores to bankruptcy. But perhaps that’s best left to the Dairy Stabilization Board, which since 1974 has protected consumers from “disruptive trade practices,” “excessive prices,” and “inadequate supply.”
-------------------

It's so comforting to know there is a Dairy Stabilization Board protecting me from the cruel and vicious free market.

[oyarde]

$1.89 at Aldi yesterday.

How anyone can argue for higher prices with a straight face is beyond me. Or more likely they're just muppet mouthpieces for the oligarchs.

I agree. That is also where I get it if needed, only thing I use it for is to make gravy , often ,better to just use some canned cream, still fairly cheap and does not go bad from lack of use.

[oyarde]

I see it at places for around $4 , if I was a young guy with young kids I would probably buy a dairy calf.....

[AGRP]

Play by the rules. Can Fresh market relocate their stores to farms so they could produce their own milk and foods at a cheaper price?

[ghengis86]

I agree. That is also where I get it if needed, only thing I use it for is to make gravy , often ,better to just use some canned cream, still fairly cheap and does not go bad from lack of use.

Get their half and half for $1.49/half gallon. Makes your gravy and sauces much richer and tastier.

I didn't even know there was a Dairy Stabilization Board. Wtf. Not surprised, but what a blatant $#@!ing cartel. I guess the question should be, what industry doesn't have it's own price fixing board

[AGRP]

I guess the question should be, what industry doesn't have it's own price fixing board

Whole foods dont have a price fixing board. Its hard to price fix milk directly from an utter or plants from the ground so people get stormed by the FDA or DEA for selling them.

[Danan]

Walter Block's fabulous anti-trust joke comes to mind:

https://www.youtube.com/watch?featur...Tz1Rbw#t=1819s