Skip to comments.A Louisiana Grocery Store Is Forced To Raise Milk Prices By State Regulators
Posted on 01/28/2013 9:28:06 AM PST by Zakeet
You might have to read this post twice to make sure your eyes didnt deceive you. This article is actually completely different from my recent pieces on stealth inflation, but is even more infuriating. In this case, a grocery store called Fresh Markets decided to sell milk at a bargain basement price as part of a promotion, yet the state has deemed the price too low. As a result, the chain is being forced to raise the price. Yep, at a time when millions are struggling every day to make ends meet, this is what the state of Louisiana has decided it a priority that the cost of milk is higher for consumers in the state. This is exactly what happens when bureaucrats exert to much influence in our daily lives. From the Daily Caller:
Louisiana state regulators recently cracked down on a supermarket chains weekly promotional deal because it was selling milk too cheaply which violates state law.
The upscale Fresh Markets was selling gallons of milk for $2.99 as part of a weekly promotional deal. Louisiana requires that retailer price markups be at least six percent above the invoice and shipping costs of the product.
They can sell it six percent over cost all day long. Its when they sell it below cost that it becomes a problem, State Agriculture and Forestry Commissioner Mike Strain told The Advocate.
After getting a complaint about Fresh Markets promotional deal, Strains office sent an auditor to a French Markets store.
At least one Fresh Market shopper was outraged when he found that the state government had intervened to control the stores milk prices.
No one can seem to put a banker in jail, but sell milk too cheap and regulators are all over you. What a disgrace.
Full article here.
We're from the government ... and we're here to help you survive the economic downturn that we caused ... because we know what's best for you ... so you Cajuns better stay out the hell of those evil Fresh Markets stores!
They should just have a buy one get 2 free sale
No doubt the law was another legacy from “Da Kingfish.”
Mike Strain has been something of a disappointment. In 2007, he unseated an entrenched dem (Bob Odom) from that position. Odom had held it for 28 years, and had consolidated a lot of power in the position; he really represented the very worst in Louisiana politics.
Strain came to the position with actual qualifications being a rancher and a veterinarian and is the first republican to ever hold the position. Unfortunately, he's taken a number of moderate to center-let positions on some issues (although he's been pretty good on some other things, and for the most part has not abused the powers like his predecessor).
Chances are good he'll be running for governor next time around.
FYI, its The Fresh Market...singular...a great place to shop...started here in good ole NC.[http://www.thefreshmarket.com/]
Their $2.99 deals are really great. The quality of their meats and produce is outstanding. You wouldn’t want to do run of the mill shopping there...real pricey but they are a great asset to have around.
It is past time to cut price supports and mandatory minimums in agriculture. Thats every bit a welfare payment as if it were being paid to some woman to have umpteen kids.
Same with all forms of corporate welfare...the operative word is “welfare”. Get rid of it.
” Louisiana requires that retailer price markups be at least six percent above the invoice and shipping costs of the product.”
Can anybody tell me the origin of this law? How it came about?
I dont know the origin of that law but many like it are to prevent unfair competition, below cost pricing to put smaller busineses out of business then raise prices after they are gone...
Amen! If you can't compete in the market you're in, find a new line of work - don't use government muscle to pick citizens' pockets.
I followed the link trail and found this:
“The Dairy Stabilization Board oversees milk prices in Louisiana. The board was established after Schwegmann, a New Orleans-area grocery chain, launched a legal battle in the 1970s with the Louisiana Milk Commission to buy milk from out-of-state suppliers because it was cheaper.”
Just as I thought. The in-state milk industry used the courts and legislature to stifle competition........
They can sell it six percent over cost all day long. Its when they sell it below cost that it becomes a problem, State Agriculture and Forestry Commissioner Mike Strain told The Advocate.”
So in Louisiana, they are forced to sell at a higher profit margin. Interesting, considering the producers of the milk have already been paid. What does it matter if a seller wants to sell at cost to little margin to promote the store. Bizzaro.
None dare call it Fascism.
So now in Louisiana the Commisar of Agriculture and Forestry is empowered to set retail prices on milk? Who determines the price of vegetables, the local crossing guard? And under what authority?
The liberals will deny that they SET prices, cuz that would be communism. So they go ahead and SET prices anyway, but deny that they do it.
The American way. Deny that you do it, give it a pleasant name, and then do it anyway.
Yea, FM has some of the best product I’ve found in a chain store. Low stock but high selection. The focus on niche quality.
Great sushi to go as well.