On this date in 1969, the North Dakota Senate Agriculture Committee heard a contentious argument over the destiny of milk prices. On one side was the Milk Stabilization Board, which wanted more power to set the minimum price of milk in the state.
On the other side was the North Dakota Food Retailers Association, which believed those powers were unfair and possibly unconstitutional. Fixing the price of milk has a long history. In 1883, dairy farmers in New York refused to sell their milk when they deemed the price too low.
In 1918, the city of Minot passed an ordinance that set the price of milk so dairy farmers wouldn't refuse to sell their milk. The state of North Dakota was keen on helping the state's dairy industry when dairies outside of North Dakota started selling excess milk in the state. Thus, the Milk Stabilization Board was formed in 1967.
The board consists of five members appointed by the governor, a dairy farmer, a milk processor, a retailer who sold milk, and two consumers who were not engaged in the milk industry. In 1969, the Milk Stabilization Board got what it wanted, the ability to set minimum prices, regulate the grade A dairy industry, and a five cents per hundred weight assessment paid by milk processors. The assessment helped pay for the board's work.
The board was also able to work on preventing dairies from other states dumping milk in North Dakota. In 1995, the board's name was changed to the Milk Marketing Board. The board's work has not been without controversy.
Some decisions made by the board have dismayed retailers, such as the rule that private haulers could deliver milk to stores as long as 45 cases were ordered. This put small rural stores in a bind. However, some scholars applaud the board's work in helping build strong and stable communities by supporting the dairy industry.
As of 2021, only six other states have milk pricing programs, Maine, Montana, Nevada, New York, Pennsylvania, and Virginia.
Dakota Datebook is written by Trista Razor-Sterza