In relation to consumer prices, federal milk marketing orders are intended to do what?

Federal milk marketing orders are designed to ensure that milk prices reflect the conditions of supply and demand in the market. They establish a system whereby the prices paid to dairy farmers for their milk fluctuates based on various economic factors, including demand for dairy products and the volume of milk produced. This system helps to stabilize prices and maintain a consistent supply of milk, ensuring that both consumers and producers have access to fair market conditions.

By adjusting prices according to demand, the orders encourage a balance between the amount of milk produced and the market's need for it, which can help prevent both surplus and shortages. This pricing mechanism supports the dairy industry while also attempting to keep consumer prices relatively stable, though they are not the primary focus of the orders. This approach contrasts with options such as setting a flat price for all milk, minimizing retail costs, or encouraging bulk purchases, which do not directly address the dynamic nature of market supply and demand.