State Stops Sale of Cheap Milk

State imposed minimum price fixing. That’s the American way!

For Lafayette stockbroker Kenneth Daigle, buying a gallon of milk is no longer the bargain it used to be on Tuesdays at Fresh Market.

The upscale supermarket chain yanked milk from its $2.99 once-a-week promotion after a state auditor objected to the low price. A gallon of whole milk was priced at $5.69 Thursday at the Fresh Market in Perkins Rowe.

State Agriculture and Forestry Commissioner Mike Strain said Fresh Market violated state regulations by selling milk below cost as part of a promotion.

The supermarket routinely sells a gallon of skim, 1 percent, 2 percent or whole milk for $2.99 on Tuesdays, limiting the quantity to four per customer.

State law requires retailers’ markups to be no less than 6 percent of the invoice cost after adding freight charges.

The Dairy Stabilization Board oversees milk prices in Louisiana. The board was established after Schwegmann, a New Orleans-area grocery chain, launched a legal battle in the 1970s with the Louisiana Milk Commission to buy milk from out-of-state suppliers because it was cheaper.Continue Reading