Page 55 - Winter2009

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The Political Economy of Milk points out that in a democracy where less than 2
By James H. Maroney, Jr. percent of the population farms and everybody
Gala Books, Ltd eats, the majority will like the lower prices and
the small minority of producers won’t get much
Several good points are made in this book help from democratically elected officials. This
starting with the prologue, where Mr. Maroney may be over-simplified in the land of corporate
points out the inconsistency and hypocrisy of lobbyists, but there is no doubt that you can
improving student performance with Ritalin quickly lose a lot of money by going into com-
while disapproving of performance-enhancing mercial milk production. The book explains
drugs for athletes. This leads to the question of this vicious cycle nicely. Another result of this
what are acceptable choices for making it easier cycle is that quality is routinely overwhelmed
to achieve the results you’re looking for. There by economic considerations. The price tag on
are a lot of options that may look good in the a bottle of milk looks nice and cheap but how
short run but lead to unintended consequences, cheap is it really? The tag on the bottle doesn’t
both in health and economics. include the price to the cows, the environment,
Subsidies sound like a great idea, at least and the health of the general population. Cheap
superficially. If some group of producers doesn’t food leads to more medical bills. A recent study
make enough money, the government gives them indicated that 60 percent of U.S. bankruptcies
more. When you start to think this through more were triggered mainly by overwhelming medical
carefully, several problems pop up. Where is bills. That doesn’t sound so cheap to me.
the money really ultimately coming from? Are So what is the author’s solution? Organic
subsidies addressing the underlying problem? milk. Organic milk is not subsidized (therefore
Even if you find a way to sweep those problems not overproduced) and appeals to a more afflu-
under the rug or rationalize them in some way, ent market. This may have sounded like a good
subsidies set off a chain of events that exacerbate idea a year or two ago, but since organic milk
the problem. A business where you are paid more, demand has dropped and some Vermont organic
but not producing more, is going to attract more producers have folded, maybe there are still a few
people into that business and the easy money. bugs to work out. A few other things bother me. Maroney also
That is going to lead to surpluses which will One is that organic milk is still an adulterated suggests that
push prices down. Then the producers will need product, still pasteurized or ultra-pasteurized,
more subsidies to stay in the game. The spiral usually homogenized and grain-fed, so the cost the end
continues. The situation now in Vermont and to health is still there and that catches up with product of
probably everywhere else in the country is that everybody sooner or later. If he would have gone organic
farmers have to sell their milk for less than the beyond organic and all the way to raw milk, this
cost of production. Clearly, nobody can keep that would have been a much better book. production is
up forever. The smaller farms are the first to fold Maroney also suggests that the end product not really any
or be bought up by larger farms. Everybody tries of organic production is not really any different different from
to get bigger as a way of getting ahead of the from commercial milk, just produced differ-
curve and we end up with a few very large milk ently. He bases this on government restrictions commercial
producers and still razor-thin profit margins. on antibiotics and FDA claims that hormones milk, just
James Bovard said, “Democracy must be don’t affect the milk. Besides being untrue, there produced
something more than two wolves and a sheep are a few other disturbing points. Organic milk
voting on what to have for dinner.” The author Continued on page 55. differently.

WINTER 2009 Wise Traditions 53