Southern Diary Compact Law and Legal Definition

Southern diary compact is an agreement among Southern U.S. states that allows member states to establish a minimum farm price for fluid milk. Southern diary compact take necessary steps to assure the viability of dairy farming in the south, and to assure consumers of an adequate, local supply of pure and wholesome milk. Authorized states cooperatively exercise more power to regulate interstate commerce than they may assert individually. For this reason, the participating states invoke their authority to act in common agreement, with the consent of Congress.

The following state statute (Georgia) explains the purpose of southern diary compact:

O.C.G.A. § 2-20-1 reads: The purpose of this compact is to recognize the interstate character of the southern dairy industry and the prerogative of the states under the United States Constitution to form an interstate commission for the southern region. The mission of the commission is to take such steps as are necessary to assure the continued viability of dairy farming in the south, and to assure consumers of an adequate, local supply of pure and wholesome milk.