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Effect of Governmental Regulations and Controls on Marketing Dairy Products

Department of Agricultural Economics, University of Illinois, Urbana

ABSTRACT

Governmental regulation of some type or other is inevitable in our modern economic society. While every proposed or enacted law purports to be in the public interest, not infrequently the intent of such laws is to use the government to protect some vested interest, instead of the public. Hence, a major problem is to set forth the purposes of legal administration and then to set up standards that will show whether or not such administration is in the public interest.

At present, there are five major types of governmental regulations that affect the dairy industry. These, together with their principal purposes, are discussed briefly.

1. Federal milk orders. The principal purposes of federal regulation are:
   1. To insure consumers an adequate supply of high-quality milk. This is done by setting up pricing mechanisms that insure equity to farmers and equity to distributors.