June 6, 2008
Most Retail Milk Prices are Udderly Illegal
86% of New York City store owners who sell milk are breaking the law by overcharging for their product, according to the “Milk Money” report released yesterday by the City Council. The 17-year-old law, intended to stop price gouging on what many believe to be a vital source of nutrients, regulates the price of milk with a monthly cost calibration. This month, store owners cannot legally charge more than $3.93 for a gallon, $2.01 for a half-gallon, and $1.04 for a quart.
Many retailers seem unaware that the law even exists – a manager at Food Market on 2nd Ave. told a Post reporter that his $3.29 half-gallon of milk was perfectly reasonable: “This is a free country. I'm allowed to charge whatever I want.” According to WCBS, the Department of Agriculture and Markets sends a monthly letter with the new milk prices to some, but not all, stores.
Council speaker Christine Quinn (pictured at podium) blames the Agriculture Department for lax enforcement, saying the agency “needs to re-evaluate how they're doing oversight. They need to change it because it's clearly not working.” And Queens Councilman Eric Gioia chimed in by asserting that “milk provides vital vitamins and nutrients, especially for growing kids, and is a staple of a healthy diet. ” For another perspective, check out Not Milk.
Photo courtesy Shirley Limongi.
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Word! I love milk and I hate paying 4 bucks for a half gallon.
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Puns are divine, and cow puns are bovine.
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I'm confused. Are milk producers subsidized by the government? Can stores make a profit selling at the legal price limit? I'm all about inexpensive milk, but I don't understand the how they determine the price limit. If the free market isn't determining the price of milk, how does the government determine the price and ensure that the producers and store owners are making a fair profit? I read the Post article but there was no explanation.
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show me where they sell milk for 2.01 a half gal?
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Downtown Gristede's is charging $4.97. Get on that NYPD.
That said, this law should probably be illegal.
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I found the explanation on the NY City Council website. Fair enough.
"The law requires the AGMKT to set a monthly threshold for the price of milk for two regions of the state – Upstate New York and the Metropolitan New York area to ensure that retailers are not charging consumers substantially more than what is paid to farmers."
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umm i don't think i have seen a half gallon of milk for $2 in nyc for like 8 years. crack down on deli's who price gauge milk please!
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I am assuming that this is for non-organic milk, because all the organic half gallons I have seen are 4.50 and up.
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waste of time and money to be policing this nonsense.
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what about the more high-end organic milks? can they charge more?
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I find low-end organic milk just as good tasting. Shouldn't we be looking at chalk and water combo's as a good substitute for that cow originated beverage? How about cow's grazing in Central Park to eliminate the high price of delivering the stuff to the city?
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I forget exactly, but Fairways' pretty close to $2 for a half gallon. The crappy little supermarket near where I work sells quarts of whole milk for 99 cents.
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This is Christine Quinn's attempt to further distance herself from the City Council slushfund scandal.
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@VanessaNYC:
The threshold price is 200% of the farm price for milk; different prices are set for the NYC metro area and upstate.
Retailers can charge more if they can demonstrate that their expenses are higher.
The manager at Food Market is an idiot; "I'm allowed to charge whatever I want."--um, no. You are selling a regulated item. I have the same feelings for taxi drivers that complained about the credit cards/TVs/GPS systems in cabs--quit complaining, or don't work in a regulated profession.
The D'Ag a block from me charges $5.29 for a gallon of milk, while the Walgreens just two blocks further is $3.99.
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I'm pretty sure that's what Whole Foods charges; actually obeying state regulations explains why they're cheaper than other places, I was confused by that.
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A lot of things I buy are cheaper at Whole Foods than at the CTown near my apt... AND my subway stop is closer also...
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I love the compassion that is consistently displayed in these comments. Milk prices are regulated because milk is considered essential to the proper nutrition and good health of infants and children. The regulated prices are meant to ensure that low income families can afford milk.
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It takes some digging, but you can fing the law, Section 396-rr in the Misc section of the Laws of New York.:
"3. No person shall sell or offer for sale fluid milk for an amount which represents an unconscionably excessive price." The Commish defines "excessive".
Rather than a media show to exhibit how much Quinn cares (BS), maybe she could contact the NYC Dept Consumer Affairs who would should contact the "commish" & help resolve the issue for NYCers. Never happen, of course, but right now I'm trying to translate the relevant statutes into Korean, Spanish, Urdu, Farsi & Hindi so I can buy milk at a "conscionably non-excessive" price.
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I'm station in Georgia, and half-gallon is $2.99 in Walmart --"
Whenever I go back home in the city, It's 3.75 for half-gallon in the Village. =\
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petebfd - you apparently don't have children. we go thru almost a gallon of milk in this house A DAY!! The fats in the milk are extremely important to my child's brain development - therefore I HAVE to pay these prices... but if you'd like to send me $40 a week to pay for my kids health and development, I'll think twice about complaining about why this 'nonsense' isn't being policed.