Dairy Industry Fails to Turn Clock Back.

SACRAMENTO, Calif.--(BUSINESS WIRE)--Sept. 11, 1999--

Milk drinkers won't see any new barriers to competition this year now that the California Legislature has adjourned without reimposing the ban on federally approved milk that was lifted last month by a state appeals court ruling.

The Legislature's refusal to act despite intensive last-minute lobbying by California's dairy industry, is a victory for consumers, according to Mad About Milk, a statewide coalition working to repeal the policies that contribute to California's high milk prices.

Last month, the 4th District Court of Appeal interpreted California law to allow the sale of appropriately labeled milk that meets or exceeds U.S. Food and Drug Administration standards. The ruling, which was reaffirmed last week, broke a decades-long ban on milk that did not have additives required by California law.

"Consumers won this round, but we still have a long way to go before milk prices in California are in line with prices in the rest of the country," said Audrie Krause, Mad About Milk's executive director. "We have no doubt the dairy industry will be back next year lobbying the Legislature to reimpose the ban and retain the state's prohibition on selling milk below cost."

Mad About Milk studies have found that California's protectionist milk policies are the reason the nation's number one dairy state has milk prices that are among the highest in the country. The coalition has called on lawmakers to lift the ban on FDA-approved milk and repeal a law that does not allow retailers to sell milk at a discount.

Although the appellate court's recent ruling opens the door to competition, there is still some uncertainty since the state has the right to appeal the ruling to the California Supreme Court. Also, the ruling did not effect the law that prevents retail grocers from selling milk at a discount.

"Prices should drop as soon as retailers start selling FDA-approved milk, but we won't see the full benefits of competition until we repeal the mandatory markup law," said Krause.

More information on Mad About Milk is available at www.madaboutmilk.org.

Coalition members include Anderson Dairy, Inc., Aztex Dairy, Inc., Bashas', California Advocates for Nursing Home Reform, Center for Public Interest Law (CPIL), City of Los Angeles Council on Aging, Colfax Market, Congress of California Seniors, Consumers Coalition, Consumers First, The Country Store, The Customer Company, East Los Angeles Health Task Force, El Regalo de Michaoacan, Friday Breakfast Club (Long Beach), Gray Panthers of Berkeley, Orange County, Sacramento, San Diego, San Fernando Valley, Santa Barbara, and Southern Alameda County, Councilwoman Christine Kehoe (San Diego), D. Kuiper Dairy, Libertarian Party of California, Orange County Taxfighters, Inc., Ponderosa Dairy, REVOLT (Responsible Voters for Lower Taxes), Rockview Dairies, Inc., Seniors for Action, Shamrock Foods, Shasta County Taxpayers Association, Councilman George Stevens (San Diego), Tenants, Seniors, and Labor (San Francisco), Chrysler Retirees Local 230 of United Auto Workers, The United Dairymen of Arizona, United Organizations of Taxpayers, and Waste Watchers.