Kensington Antitrust Advisors Group

In Allen et al. v. Dairy Farmers of America Inc. et al., Northeastern dairy farmers have filed a class action in the Vermont District Court against Dairy Farmers of America Inc., alleging DFA and Dean Foods Co. have collaborated in a price-fixing scheme and have monopolized distribution of fluid milk in the Northeast by trying up access to milk bottling plants through unlawful executive supply agreements, which forced independent farmers to join DFA, the largest dairy cooperative in the U.S.  The suit claims that DFA was able to achieve monopoly power through a series of unlawful contracts, such as its contracts with Dean Foods, which controls about 70 percent of the Northeast market for bottling fluid Grade A milk, and HP Hood LLC, which controls 20 percent of the same market.  Plaintiffs claim that in order to use bottling plants, which allows independent farmers to receive minimum monthly payments from the U.S. Department of Agriculture for the sale of the milk, independent farmers had to join DFA or its affiliate Dairy Marketing Services LLC.