On October 14, 2009
Does Dean Foods Have Monopoly Power?
Two dairy farmers have filed a lawsuit against Dean Foods and Dairy Farmers of America. Dean is the country’s largest dairy processor and DFA its largest cooperative, and the farmers accuse them of “monopolizing a level of distribution of fluid milk in the Northeast and forcing dairy farmers to join DFA or its marketing affiliate, Dairy Marketing Services, to survive.” The lawyer representing the farmers says he is seeking class-action status, meaning thousands of other affected farmers could join the suit. It’s true that dairy farmers have not been faring well, with prices falling below the cost of production for many farmers, while Dean Foods has been profiting from the low prices. But many industries are in trouble right now,…
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