By Robert Cohen Executive Director Text Only

Wholesale Prices for the Week Ending
7/20/02 Vs. 7/21/01 (ONE POUND OF COMMODITY)

**********Cheddar Butter Dry Milk (nonfat)
July 2002 $1.08 $ .98 $ .90
July 2001 $1.65 $1.97 $ .98

Before the genetically engineered bovine growth hormone
(BST) was approved (February 6, 1994), Congress asked the
Government Accounting Office (GAO) to look into the
controversy. GAO is America's internal detective agency,
investigating crimes when requested to by Congress. The
Government Accounting Office does not audit financial
records. They audit issues, and hold lawbreakers

GAO recommended that the bovine growth hormone not be
approved. Despite their concerns, FDA ignored the GAO
recommendation. During the time frame between that
investigation and final approval, the White House issued an
unprecendented report recommending approval.

In that 64-page Executive Branch report, it was so written:

"Income for individual farmers who use BST is likely to

BST will lead to lower milk prices...Lower milk prices will
result in decreased federal costs."

Sadly, the conclusions made by the White House were wrong on
both points.

Individual dairy farmers did not need welfare payments when
the White House report was written. Today, if not for
billions of dollars in subsidy payments, the dairy industry
would be out of business. Every dairy farmer receives
welfare checks. Few would survive without those payments.
The dairy industry is financially bankrupt. The America that
supports the dairy industry is marally and intellectually

What is the state of fluid milk production in the United
States in 2002? Milk and dairy product prices continue to
slide since last fall. What is the effect of lower wholesale
prices on milk production?

According to this month's United States Department of
Agriculture milk production report, milk producers are
responding by turning out more and more milk.

Dairy farmers are driving up inventories while driving down
wholesale prices. Consumers do not benefit, as retail prices
remain the same.

While the consumption of milk continues to decrease, the
total monthly production of milk during 2002 has exceeded
2001 volume by 300 million pounds per month.

What Americans did not need was more milk. Genetic
engineering and biotechnology have poured more milk into a
market that has become a saturated sponge. The dripping
overflow is purchased by our own government, then dried,
then stored underground in caves and in warehouses. The
rental cost on storage space runs over $20 million per year.

The worst part of this is that the milk changed. The new
milk contains increased amounts of naturally occurring
powerful growth hormones. What else has changed in America?
Increased growth, for one. An obesity epidemic. Early sexual
maturity. Increased rates of asthma, and diabetes, and
cancer, heart disease, and bone disease.

The insanity continues.

Robert Cohen author of:   MILK A-Z
Executive Director (
Dairy Education Board

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