Less than two months, fears of falling of the so-called “dairy cliff” and the resulting threat of doubled milk prices dominated fears of consumers. At least for now, that crisis appears to have been averted.
According to a report by the Supermarket Guru, consumers and Congress alike were forced to face not only the fiscal cliff but also the ramifications of the dairy cliff. However, the numbers behind the fiscal cliff or the $17 trillion debt ceiling may not relate well to consumers. Paying $8 for milk their family drinks on a daily basis does.
For now, the farm bill’s 9-month extension has given consumers a momentarily peace of mind and discussions based around major milk price increases have since been silenced. Retailers and experts alike can expect at least a momentarily reprieve from a barrage of questions demanding answers to the possibilities of doubled milk prices.
Click here to read more or watch the video report above.
Though the dairy cliff – and doubled milk prices – was averted by Congress in early January, the dairy industry had mixed views on the decision.
”Despite the progress made in 2012 on the farm bill, we’re starting 2013 on a bad note. We oppose any farm bill extension of any duration that does not contain the Dairy Security Act, and resolve to work this year on achieving that as a long-term goal,” National Milk Producers Federation president and CEO Jerry Kozak said in a statement.
Meanwhile, the International Dairy Foods Association (IDFA) was more positive on the move.
"We appreciate that the (fiscal cliff legislation) includes provisions that will avoid the resurrection of dairy policies from more than 50 years ago. This agreement allows Congress time to fully and openly consider future reforms to our nation's dairy policies,” said IDFA president and CEO Connie Tipton.