Prices are not just money. They're information. Rising prices tell farmers to produce more; that increases supply and prices go back down. Falling prices tell producers to invest in other products. This system works well for plums, peaches, cars and most everything we buy.
But bureaucrats and lobbyists say milk is "special."
Vandenheuvel says cows can't be subject to market demand because "there are several years of lead time between when you decide to buy a cow and when that cow produces milk."
The CDFA agrees because: "Milk is a perishable product and must be harvested daily," and "Milk continues to be viewed as a necessary food item, particularly for children."
I say, so what? It's not "lead time" or being "perishable" or even being "necessary" that makes milk unique. Plums and newspapers are perishable and harvested daily. It takes long lead times to build assembly lines to make cars. No entrepreneur has a guarantee of market demand once the factory is complete. All business is risky.
The CDFA wails that without price controls, "no other regulations would be in place to assure an adequate supply of milk."
Give me a break. It's in planned economies, like Venezuela, North Korea and the former Soviet Union that shortages occur. When politicians micromanage markets, consumers suffer.
Milk isn't "special." Almost no product is. Let competition set the price.
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