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75: In this letter, the author claim that theBatavia government should being to regulate retail milk prices in order toprevent farmers from receiving excessive profits on the increased supply ofmilk. To support his claim, the author points out the increased number of dairyfarms. He also cites the raised milk price at a local market. However, theletter is unconvincing for several reasons. In the first place, the author assumes araise of local dairy farm amount with a national statistics. The assumption is logicallyunsound, since nationwide situation cannot represent local situation. It ispossible that the local diary industry has been suffered from declination recentyears, and the tendency of the dairy farm amount is opposite with that of nationwide. In the second place, even if the number oflocal dairy farm is greater, the author’s hastily extrapolation of theincreased milk supply is not as apparent as he suggests. Perhaps, it is exactlythe lower production of dairy farms that forces more farms to be establishedand dairy industry may still suffer from an entire drop in production. Thirdly, even if the supply increased atthe same time, and as the author points out, the local market asks for highermilk price, whether farmers have been benefited from excessive profits isunknown. First of all, the statistics is compared with the data of 10 yearsago. Perhaps the quality is higher required 10 years later, which raised the productioncost. Since the profit is equal with sale minus cost, the farmers possiblybenefit little from the raised price. Furthermore, with rapid economic development,price should be correspondent to inflation rate.When take inflation into consideration, 3 dollar may be “less” than 1.5. In summary,the evidences are insufficient to support the author’s claim. More recent statisticsof local dairy industry should be provided to prove the increased milk supply. Moreover,profits should be added up with reliable data, instead of simply inferred fromsale price. |
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