II. Finding

    Whether the public interest will be served by the establishment of
minimum milk prices to dairy farmers under Article IV.
    The Commission referred to the Compact's express Statement of
Purpose in determining the intended meaning of ``public interest'', as
used in this finding. The Statement of Purpose declares at the outset
that:

    The mission of the commission is to take such steps as are
necessary to assure the continued viability of dairy farming in the
northeast, and to assure consumers of an adequate, local supply of
pure and wholesome milk.
    The participating states find and declare that the dairy
industry is the paramount agricultural activity of the northeast.
Dairy farms, and associated suppliers, marketers, processors and
retailers, are an integral component of the region's economy. Their
ability to provide a stable, local supply of pure, wholesome milk is
a matter of great importance to the health and welfare of the
region.

Compact Art. I, Sec. 1.
    Section 9(e) of the Compact provides further guidance with regard
to the intended meaning of ``public interest''. This section provides a
concise but non-exhaustive list of criteria for the Commission to
consider ``in determining the price''. Compact Art. IV Sec. 9(e).
Pursuant to that section:

    [T]he commission shall consider the balance between production
and consumption of milk and milk products in the regulated area, the
costs of production including, but not limited to the price of feed,
the cost of labor including the reasonable value of the producer's
own labor and management, machinery expense, and interest expense,
the prevailing price of milk outside the regulated area, the
purchasing power of the public and the price necessary to yield a
reasonable return to the producer and distributor.

    Based on the inclusion of this broad list of criteria, the Compact
Commission determined that it must balance the interest of all market
participants described by the Statement of Purpose--processors,
retailers and consumers, along with farmers.\69\ This necessarily
requires a broad inquiry, one that takes into account the common
interest of all market participants in the maintenance of dairy farming
in the region.
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    \69\ Neil Marcus, President of Marcus Dairy, Inc. emphasized the
importance of considering the impact of the Compact on all market
participants in his testimony. See HT 82-83; 12/19 Marcus.
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    The Compact Commission thereby identified four main components of
the ``public interest'' contemplated by this Finding: (i) Assuring the
continued viability of dairy farming in the region, (ii) assuring
simultaneously  the continued viability of associated suppliers,
marketers, processors and retailers, (iii) benefiting consumers through
the maintenance of an adequate supply of milk, reasonably priced, and
(iv) maintaining a local supply of milk.
    Based on this definition of ``public interest'', the Commission
sought comment on the following subjects and issues:
    (1) The balance between production and consumption in the region--
the pay price needed to yield a reasonable rate of return to producers
and to ensure an adequate supply of milk for the region.
    (2) The prevailing farm prices for Class I, fluid milk, inside and
outside the New England region,
    (3) The prevailing processing and wholesale costs for Class I,
fluid milk, inside and outside the New England region,
    (4) The costs of transporting bulk fluid milk products to plants
located within the New England region,
    (5) The costs of delivering fluid milk products processed outside
the New England region to outlets within the region,
    (6) The purchasing power of the general public,
    (7) The elasticity of demand for fluid milk products,
    (8) The cost of retailing fluid milk products,
    (9) The prevailing retail prices for Class I, fluid milk, inside
and outside the New England region,
    (10) The potential impact of a flat, combined, regulated, Federal
Order and Compact Over-Order price on the wholesale market for fluid
milk products,
    (11) The potential impact of a flat, combined, regulated, Federal
Order and Compact Over-Order price on the retail market for fluid milk
products,
    (12) The potential impact of a flat, combined, regulated, Federal
Order and Compact Over-Order price on school lunch programs.
    (13) The potential impact of a flat, combined, regulated, Federal
Order and Compact Over-Order price on the Women, Infants and Children
Special Supplemental Nutrition Program of the United States Child
Nutrition Act of 1966.\70\
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    \70\ See 61 CFR 65604; 62 CFR 12252.
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