Speeches - Etheridge, Hutchinson Announce Effort to Expand Dairy Compacts, Help Farmers & Consumers in Volatile Dairy Market

Etheridge, Hutchinson Announce Effort to Expand Dairy Compacts, Help Farmers & Consumers in Volatile Dairy Market

The Honorable Bob Etheridge
Statement on Introduction of
Dairy Compact Legislation
May 2, 2001

Good afternoon. I want to echo my friend Asa's welcome to all of you for joining us here today. I am proud to join my colleagues in introducing legislation that reauthorizes and expands the Northeast Dairy Compact and gives other states, like my state of North Carolina, the ability to come together and form our own dairy compact.

Folks, twenty-five years ago, my state had more than 1600 dairy farmers. Today, we have about a fourth of that figure. If more North Carolina dairy farmers are forced out of business and competition for the fluid milk market continues to decline in my state, out of state milk processors will be able to charge my constituents whatever they want for a gallon of milk. Not only will these processors have free reign to set prices in my state, they most certainly will pass along the costs of transporting the milk to North Carolina, which are increasing due to the rising cost of gasoline.

As a consequence, consumers in my state will face greater price volatility, and they will have little choice but to pay that price at the grocery store. Folks, that's just plain wrong. Milk is too important to the nutritional needs of all citizens, especially the young and the elderly, to allow its price to be controlled by a few powerful corporations. As the former superintendent of North Carolina's schools, I know how important good nutrition is to our children's ability to learn; and milk is key to good nutrition.

The Northeast Compact has shown that you can take the volatility out of milk pricing, keep dairy farmers in business and provide a fresh supply of local milk at a fair price. The Compact establishes a floor price for farmers for the fluid milk they sell to processors. Producers, consumers, and even processors play a role in determining that price.

Passing this legislation is vital to the future of North Carolina dairy farmers and to the wallets of my constituents. I'm tired of being told to "let the free market reign" by those getting rich at the expense of our farmers. The South is being flooded with milk, driving our farmers out of business and reducing competition. We are not going to stand by and do nothing while large corporate milk processors make a fortune by dumping surplus milk in our markets and forcing our dairy farmers to leave a business they love and enjoy. With this legislation, we stand up and say, NO MORE.

On behalf of my colleagues, I want to thank all the many organizations who came here today to stand with us for a fair deal for dairy producers: the Grange, the Farm Bureau, the Dairy Farmers of America, milk producers coming over the border from both Maryland, Virginia, and most especially, dairy producers from my state of North Carolina.

Folks, this is what it's all about. Are we going to sit around and watch an entire way of life disappear before our eyes? I say to you NO. We must pass compact legislation and ensure that consumers have access to a fresh supply of local milk, and that dairy farmers can not just survive, but thrive. Thank you.