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Dairy Industry Crushed Innovator Who Bested Price-Control System (Campaign $ Defeats Free Markets)
The Washington Post ^ | December 10, 2006 | Dan Morgan, Sarah Cohen, Gilbert M. Gaul

Posted on 12/10/2006 6:37:40 PM PST by Zack Nguyen

A maverick dairyman named Hein Hettinga started bottling his own milk and selling it for as much as 20 cents a gallon less than the competition, exercising his right to work outside the rigid system that has controlled U.S. milk production for almost 70 years. Soon the effects were rippling through the state, helping to hold down retail prices at supermarkets and warehouse stores.

Taking on Big Milk For three years, starting in 2003, a coalition of milk companies and dairies lobbied to crush an initiative by a maverick Arizona dairyman. Hein Hettinga chose to work outside the rigid system that has controlled U.S. milk production for almost 70 years. The milk lobby said he presented unfair competition because he chose to operate without federal price control. Hettinga fought back but was outgunned on the Hill. In March, Congress passed a bill that effectively ended his experiment.

That was when a coalition of giant milk companies and dairies, along with their congressional allies, decided to crush Hettinga's initiative. For three years, the milk lobby spent millions of dollars on lobbying and campaign contributions and made deals with lawmakers, including incoming Senate Majority Leader Harry M. Reid (D-Nev.).

Last March, Congress passed a law reshaping the Western milk market and essentially ending Hettinga's experiment -- all without a single congressional hearing.

"They wanted to make sure there would be no more Heins," said Mary Keough Ledman, a dairy economist who observed the battle.

Hettinga, who ran a big business and was no political innocent, fought back with his own lobbyists and alliances with lawmakers. But he found he was no match for the dairy lobby.

"I had an awakening," the 64-year-old Dutch-born dairyman said. "It's not totally free enterprise in the United States."

(Excerpt) Read more at washingtonpost.com ...


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS: dairycartel; hettinga; reid
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1 posted on 12/10/2006 6:37:43 PM PST by Zack Nguyen
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To: Zack Nguyen

Campaign contributions beats free enterprise, it seems.


2 posted on 12/10/2006 6:38:07 PM PST by Zack Nguyen
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To: Zack Nguyen
A lot of conservatives hate free enterprise too.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." -Manuel II Paleologus

3 posted on 12/10/2006 6:41:39 PM PST by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives On In My Heart Forever)
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To: Zack Nguyen

As someone who grew up on a dairy farm, I can tell you that feudalism hasn't ended.


4 posted on 12/10/2006 6:42:51 PM PST by freedomfiter2
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To: Zack Nguyen

It has for quite some time. So long as Congress represents the various lobbies, they have no time or dedication to the citizens who put them there.


5 posted on 12/10/2006 6:42:51 PM PST by kenth (I wish compassionate conservatives were more compassionate to conservatism.)
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To: Zack Nguyen

One more reason why the Pubs lost control.


6 posted on 12/10/2006 6:44:04 PM PST by Tribune7 (Conservatives hold bad behavior against their leaders. Dims don't.)
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To: Tribune7

It's another reason why I am starting to think that Republicans need to take this time to reconsider why they are in politics in the first place.


7 posted on 12/10/2006 6:55:05 PM PST by Zack Nguyen
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To: freedomfiter2
As someone who grew up on a dairy farm, I can tell you that feudalism hasn't ended.

What do you mean?

8 posted on 12/10/2006 6:56:01 PM PST by Zack Nguyen
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To: Zack Nguyen
dairyman said. "It's not totally free enterprise in the United States."

It's not free enterprise when the RATS are in power.

9 posted on 12/10/2006 7:08:17 PM PST by TOneocon
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To: Zack Nguyen

As someone who grew up on a dairy farm, I can tell you that feudalism hasn't ended.
What do you mean?


The large milk companies have carved the country into blocks of milk producing areas. There is little if any competition between them to buy the milk. The price is set and the farmers either take it or go out of business.
Just as this article points out the companies use the "socialist" government to keep everyone in line.


10 posted on 12/10/2006 7:11:55 PM PST by freedomfiter2
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To: Zack Nguyen
Oh, I think a lot of Republicans know why they are in politics namely the money and the perks which is especially obvious in Pa.
11 posted on 12/10/2006 7:17:46 PM PST by Tribune7 (Conservatives hold bad behavior against their leaders. Dims don't.)
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To: goldstategop
A lot of conservatives hate free enterprise too.

If you're going to throw out a statement like that in order to start some squabbling here, the least you can do is provide us with a concrete example. Otherwise, it just sounds like whining.
12 posted on 12/10/2006 7:23:58 PM PST by fr_freak
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To: freedomfiter2

This socialist program is a hold-over from the New Deal. It's ridiculous and anti-free market.


13 posted on 12/10/2006 7:28:36 PM PST by Zack Nguyen
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To: fr_freak

As much as I hate to agree with him, stop by any deficit/protectionism thread here and you'll see what he means...


14 posted on 12/10/2006 7:33:11 PM PST by Charles H. (The_r0nin) (Hwæt! Lãr biþ mæst hord, soþlïce!)
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To: Zack Nguyen



This sentence sums the whole discussion nicely:

The milk lobby said he presented unfair competition because he chose to operate without federal price control

He chose to operate without our money subsidizing him.

We used to applaud people who did that.


15 posted on 12/10/2006 7:36:24 PM PST by padre35 (We are surrounded, that simplifies our problem Chesty Puller)
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To: TOneocon
It's not free enterprise when the RATS are in power.

Ah, but the Democrats are not in power yet. This was done by our very own alleged Republicans.

16 posted on 12/10/2006 7:38:30 PM PST by CobaltBlue (Extremism in the defense of liberty is no vice. Moderation in the pursuit of justice is no virtue.)
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To: Zack Nguyen; Tribune7



"Hettinga also turned to the courts. In October, he filed a lawsuit charging that the milk bill was unconstitutional because it was aimed at penalizing a single individual.

"I still think this is a great country," Hettinga said. "In Mexico, they would have just shot me." "


See tag line. Seems they did!





17 posted on 12/10/2006 8:48:50 PM PST by brityank (The more I learn about the Constitution, the more I realise this Government is UNconstitutional.)
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To: Zack Nguyen

Which dairy state in a Red state? That might be the answer to the question right there.


18 posted on 12/10/2006 9:04:28 PM PST by bpjam (Don't Blame Me. I Voted GOP.)
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To: Zack Nguyen

My grandfather had a dairy farm in upstate New York - sometime in the 'teens or 'twenties I think it was - he joined a group of his neighboring dairy farmers who formed a co-op to try to get a better price for their milk. The milk buyers raised their prices to farmers who didn't go along with the co-op and it fell apart. Then the prices went back down to what they had been.

The more things change....


19 posted on 12/10/2006 9:19:10 PM PST by vvpete (Speed bumps for smart growth!)
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To: brityank
In October, he filed a lawsuit charging that the milk bill was unconstitutional because it was aimed at penalizing a single individual.

I hope the lawsuit is successful and the dairy cartel is gotten rid of. There is just really no excuse for it in a free market economy.

20 posted on 12/11/2006 8:30:08 AM PST by Zack Nguyen
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