Dairy producers in neighboring states who sell milk to California processors are celebrating today.
Yesterday, U.S. District Court Judge Garland E. Burrell Jr in Sacramento ruled that California’s milk pricing rule discriminates against out-of-state producers and is in violation of the commerce clause of the U.S. Constitution. The ruling means California must shelve its current pricing program that guarantees a minimum price for milk bought from California producers, but not for milk bought from producers living outside the state.
California producers fear that the ruling will make it easier for out-of-state dairies to come in and take away some of their business. The California Department of Food and Agriculture intends to appeal.
The lawsuit was filed by dairy producers in Nevada and Arizona who believed the California milk pricing system gave California producers an “unfair competitive advantage”. For more details from the Modesto Bee, click here.