New Mexico Dairy Farmers Win $34M Antitrust Deal
Source: dairynews.today
New Mexico dairy farmers have reached a settlement of $34 million in an antitrust lawsuit against major cooperatives for price-fixing.
New Mexico dairy farmers have achieved a significant legal victory by settling a $34 million federal antitrust class-action lawsuit against Dairy Farmers of America and Sel ect Milk Producers. The lawsuit, representing a class of dairy farmers fr om New Mexico and other states, alleged violations of the Sherman Act through practices aimed at fixing raw milk prices. The settlement includes $24.5 million from DFA and $9.9 million from Select, alongside crucial non-monetary terms. These include the dissolution of their shared milk marketer, Greater Southwest Agency, and commitments to better transparency and compliance to prevent anti-competitive practices. This outcome reflects broader implications for fair competition and transparency in the U.S. dairy industry.
The class-action lawsuit claimed the cooperatives engaged in price manipulation by coordinating price decisions and sharing non-public pricing information. This legal action covered all dairy farmers in regions like New Mexico and parts of Texas, Arizona, Oklahoma, and Kansas, and spanned operations from January 1, 2015, to June 30, 2025. The settlement ensures funds will be deposited into an escrow account to cover all legal fees and administrative expenses.
Both cooperatives have also agreed to adopt new antitrust training programs for their executives and provide more transparency to their members. The case underscores the importance of legal accountability and fair market practices in the dairy sector, paving the way for potential reformations in agribusiness practices.
The class-action lawsuit claimed the cooperatives engaged in price manipulation by coordinating price decisions and sharing non-public pricing information. This legal action covered all dairy farmers in regions like New Mexico and parts of Texas, Arizona, Oklahoma, and Kansas, and spanned operations from January 1, 2015, to June 30, 2025. The settlement ensures funds will be deposited into an escrow account to cover all legal fees and administrative expenses.
Both cooperatives have also agreed to adopt new antitrust training programs for their executives and provide more transparency to their members. The case underscores the importance of legal accountability and fair market practices in the dairy sector, paving the way for potential reformations in agribusiness practices.
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