Arlen Specter: “This amendment calls for the creation of a dairy compact that would extend beyond the New England States, which…”

“This amendment calls for the creation of a dairy compact that would extend beyond the New England States, which currently have a dairy compact, and would include a number of other States, such as Pennsylvania, New York, and others. The purpose of this dairy compact is to stabilize the price of milk. The price of milk has fluctuated enormously. In December of last year, it was as high as $17.34 per hundredweight; in June of this year, it went down to $11.42 per hundredweight. There is currently a dairy compact in effect for the Northeastern States--not including Pennsylvania or New York--which will expire in October of this year. The compact will provide some stability in the industry and will guarantee consumers an uninterrupted supply of milk. There has been some concern expressed about the cost to the consumers. When the Northeast Compact went into effect, the prices for milk within the compact region were 5 cents lower than retail prices in the rest of the Nation. This bill would authorize member States to enter into a voluntary agreement to create a minimum price for milk in the compact region that takes into account the regional differences in the costs of production. In addition to providing the stability, it will ensure, with an appropriate safety net, that milk can be produced and be available for very important programs like WIC--Women, Infants, and Children--and the availability generally.”