Economic Impact of Eliminating Pennsylvania's Minimum Milk Pricing System
The Board commissioned Ken Bailey Dairy Consulting to conduct a study to determine the impact of eliminating Pennsylvania's minimum milk pricing system. The study concluded that eliminating minimum milk prices would result in
-short- to medium-term 1.3% increase in fluid milk consumption
-decrease in farm milk prices
-bankruptcy for 57% of fluid milk processors with 66% loss in fluid milk processing volume
-$182 million loss to dairy farmers
-$717 million loss to milk processors
-$2.8 billion reduction in state-wide economic activity
-$683 million in lost wages
-10,047 lost jobs
Read the report here.