Letter: Nevada has rules on milk prices

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Friday, May 14, 2004 | 5:39 a.m.

WEEKEND EDITION

May 15 - 16, 2004

Sun reporter Jennifer Shubinski wrote a story for your April 28 edition about the rising milk prices. Mike Compston, executive director of the Nevada Dairy Commission, named a number of factors responsible for the increases. He concluded, "It's strictly a supply and demand situation."

Unfortunately, he failed to mention one important factor. The price of milk in Nevada is regulated. It's illegal for a retailer to sell milk at less than cost. Retailers cannot use milk as a loss leader even if they want to!

Strictly a supply and demand situation? I think not!

JOE KAFFE