By Blake Jackson
Dairy Farmers of America (DFA) has won an antitrust lawsuit that accused the cooperative of attempting to dominate the Northeast milk market. The lawsuit, filed last year, argued that DFA had coerced farmers into becoming co-op members, snapped up competing businesses, and used exclusive supply contracts in what amounted to anticompetitive practices.
The lead plaintiff in the case was SRJF Inc., a dairy farm in Stamford, New York. SRJF alleged that it had received less money for its raw milk than it would have if DFA had not been working toward monopsony - a situation in which a market has only one buyer.
DFA denied the allegations and argued that it had acted in the best interests of its member-owners. The cooperative also pointed to a $50 million settlement it had reached with the Justice Department in 2016 in which it agreed to modify some of its business practices.
In a ruling issued on October 5, 2023, U.S. District Judge Christina Reiss sided with DFA and dismissed the SRJF lawsuit. Judge Reiss found that the SRJF lawsuit rehashed claims that had been previously resolved in the 2016 settlement and that DFA had been damaged by having to defend itself against the baseless claims.
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Categories: New York, Business, Livestock, Dairy Cattle