RES 481 Draft 01 2012-2014 - Laserfiche WebLink

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WHEREAS, this rule change would allow Big Island Dairy to control the milk market through monopolistic leverage by undermining the minimum price other dairies can anticipate and plan for, which is likely to negatively impact the stability of the milk market; and WHEREAS, this proposed rule change contradicts the statutory scheme by including that the petitioner, here Big Island Dairy, would demonstrate that the waiver is consistent with the statutory standard set forth in HRS Section 157-32, which is the statutory standard for setting the minimum prices—not for some exception to the set prices; and WHEREAS, this proposed rule change is poorly written, as the only standard for determining whether the petition to allow for sale of milk at a lower price is not stated, but instead incorporated by reference to a standard set forth in the corresponding state statute; and WHEREAS, this proposed rule change would promote the stability of Big Island Dairy at the expense of other existing and start-up dairies, and as such is inconsistent with the Department of Agriculture's goal of promoting diversified agriculture; and WHEREAS, the proposed rule change reflects the contract terms that Big Island Dairy and distributor Meadow Gold expect to or in fact have already entered into, and representatives from other dairies have, at a public hearing, expressed concern that this is a behind the scene "done deal"; now, therefore, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII that it urges the Board of Agriculture to deny the request for the proposed amendment to Section 4-60- 10 of the Hawai`i Administrative Rules. 2