Dairy Farmers of America colluded with Dean Foods to artificially depress the price paid to farmers; like “abuse of dominance” in case of B.C. raw milk?

An introduction from Gordon Watson:

“The term “abuse of dominance” comes from the Competition Act Revised Statutes of Canada. It is defined as an offence under that act.

From what I’ve seen over the last 13 years’ of my involvement with the Campaign for REAL MILK in British C0lumbia, the engine of opposition to fresh whole raw milk being available is from the big food processors, using the pretext of “concern for public health” as a cover story for suppressing competitors who can deliver a far-superior product.

Apologists for the Canadian way of doing things = the Canadian Wheat Board, the vegetable marketing boards, and the milk marketing boards = will quickly bleat that ‘oh that can’t happen here, the marketing boards are controlled by the government’.

Excuse me? That’s the definition of fascism … when the government and industrial corporations are interlocked … the government is part of the scam! Q.E.D”

And now that story about the DFA price fixing, from Robbie Feinberg, on the Nashua Telegraph:

“With a deadline approaching Tuesday, local dairy farms are taking different approaches when deciding whether to submit a claim for a share of a $30 million antitrust settlement with food and beverage company Dean Foods.

Local dairy businesses Pomeroy Farms, of Mont Vernon, Fitch’s Dairy Farm, of Milford, and Connolly Brothers Dairy Farm, of Temple, are all eligible to receive a claim in the settlement, which stems from a 2009 Vermont case – Allen v. Dairy Farmers of America, Inc. et al. – between a group of farmers representing approximately 9,000 dairy farmers in the Northeast and Dean Foods, Dairy Farmers of America and Dairy Marketing Services.

According to court documents, the farmers alleged that Dean Foods, DFA and DMS worked to decrease competition in the raw milk market in the Northeast and suppress the price of milk to extremely low levels.

The farmers and Dean Foods reached a settlement in December 2010 that was approved by a judge Aug. 3.

In the settlement, Dean Foods denies any wrongdoing but said it would settle with the farmers in order to avoid further expense if the trial continued.

While $6 million of the settlement will be used toward legal fees, $24 million will be paid to any dairy farm that produced and pooled raw Grade A milk from Jan. 1, 2002, to May 23, 2011, in the area of “Federal Milk Order 1,” which includes Connecticut, Massachusetts, New Hampshire, Vermont, Rhode Island, New Jersey, Delaware and parts of New York, Pennsylvania, Maryland and Virginia.

Kit Pierson, one of the attorneys representing the dairy farmers, said the cases against the DFA and DMS are still in the discovery process.

Pierson added that the amount of money given to each farm submitting a claim will average between $2,500 and $5,000 but will vary based on how many farms submit claims and how much milk each farm produced.

Local farmers are taking different approaches to their respective situations when deciding whether to file for a share of the claim.

Connolly Brothers Dairy Farm has decided not to file because of its peculiar situation – the cooperative the farm uses to get its products to a national market is Dairy Farmers of America, one of the defendants in the case.

Chris Connolly, of Connolly Brothers, said because of that connection, he is worried that filing for a claim could ultimately hurt his business in the future….”

Read the whole story on the Nashua Telegraph.

2 Comments

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2 responses to “Dairy Farmers of America colluded with Dean Foods to artificially depress the price paid to farmers; like “abuse of dominance” in case of B.C. raw milk?

  1. Rick Adam

    Well if we are stupid enough to believe what the Government tells us without checking for ourselves then we really do deserve exactly what is happening!

  2. The entire scope of corruption is not yet clear to the majority of people. Society has everythin to keep their bellies full, and their brains occupied with enough enter- brain- drain-ment.
    We have no choice but exposing wherever we can this reality of corruption

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