Public Interest Finding--Summary Analysis

    In view of this comprehensive marketwide analysis, the Compact
Commission concludes that Compact Over-order Price Regulation in the
amount of $16.94, for six months' duration, will ensure the ``public
interest'' is served in the manner contemplated by the finding analysis
under this section. The stated amount represents a limited market
adjustment that accounts for its potential impact on all levels of the
market, from farm to retail.
    As noted throughout the analysis under this and the previous
finding section, the Compact Commission has accounted for a number of
potential market impacts in fashioning this initial, limited
regulation. Most particularly, the Commission is concerned about the
potential for market dysfunction in the wholesale market, and with
regard to unanticipated impacts on consumer prices.
    The Commission has concluded that the regulation should not
adversely affect the wholesale market and should, indeed, have a
positive impact on retail prices. Yet the Commission has purposefully
limited the duration of the initial regulation to ensure against
unanticipated consequences. As a final safeguard against unanticipated,
adverse consequences, the Commission has acted to ``hold harmless'' the
WIC program, despite its conclusion of the remoteness of such
unanticipated consequences occurring.
    The Compact Commission concludes further that the limited duration
of this initial regulation ensures that its impact across markets can
be carefully monitored and evaluated from the outset and then
reconsidered as soon as a record has been established. Accordingly, the
Commission will attempt specifically to monitor and assess the pattern
of raw product supplies from New York and New England farms and the
movement of packaged milk into the market from plants outside the
region, as well as the impact of price regulation on retail prices,
including the school lunch program, and the WIC program.\109\
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    \109\ In reply comment, John Ghiorzi, Regional Director,
supplemental Food Programs, Northeast Region, USDA, suggested that
the demonstrational nature of the initial regulation would be better
served if the initial period were eight or twelve months instead of
six months. The Commission acknowledges this point. The Commission
has determined still that a useful empirical record can be developed
in six months', and that the relative efficacy of this record must
be considered along with the other factors at issue in determining
the proper duration of the initial regulation. The Commission has
accordingly settled upon six months as the proper length of time.
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