PDA

View Full Version : Canadian dairy prices are higher than in the US, and that's irking pizza makers.


Swamp Fox
08-03-2005, 11:02 AM
One of the demons of God-fearing, bible thumping free-market free trading economists are agricultural prices, which are considered as evil as the Soviet Union. In Canada, the typical complaint is that the agricultural marketing boards jack prices up, so the price of food is less competitive than in the US, and society is worse off economically - it can be shown, at least in theory, that the benefits to the farmers would be less than the costs to the consumers. As my professor said in that course, if you go across the border and compare the price of food, you have to ask yourself if price fixing is really good for Canada.

I don't know if there's price fixing of this kind in the US, and I know very little about agricultural economics, but I would think that artificially raising prices is bad.

Comments? Not that any of us are home boys, but never mind.

http://www.theglobeandmail.com/servlet/story/RTGAM.20050803.wxrcheese03/BNStory/Business/

ShinyTop
08-03-2005, 11:09 AM
When I first moved from Florida to Alabama in 1975 I noticed that milk was 50% higher. I discovered that Alabama had a milk board to protect the consumer. Typical special interest.

tke711
08-03-2005, 11:11 AM
There is a milk pricing scheme in the U.S. as well, but I'm not sure how it really compares to Canada's system.

http://www.ers.usda.gov/publications/AIB761/

tke711
08-03-2005, 11:15 AM
When I first moved from Florida to Alabama in 1975 I noticed that milk was 50% higher. I discovered that Alabama had a milk board to protect the consumer. Typical special interest.
That same thing used to be (may still be) happening here in Wisconsin. Under the guise of trying to protect Wisconsin dairy farmers, prices were fixed higher to make them more money. Sounds good of course, unless other States don't follow suit. A few years ago, I know it was a fact that Wisconsin companies could literally buy milk cheaper from California then they could from Wisconsin, even with including the increased freight charges.

Biker
08-03-2005, 03:28 PM
Price fixing is rampant in agriculture. Hog farmers especially are hard hit when it comes time to sell unless they belong to the local "co-op".

Change remore port | First Time Home Buyers | Debt Management | Credit Cards | Buy PSP