by Kristin Bakker, Farm Progress
A federal court recently granted a motion for preliminary approval of a settlement fund in a class action lawsuit several New Mexico dairy farmers brought against Dairy Farmers of America Inc. (DFA) and Select Milk Producers Inc. – the two largest dairy cooperatives in the Southwest U.S. – for allegedly suppressing milk prices and wages.
The lawsuit was filed in April 2022 in the U.S. District Court for the District of New Mexico by Othart Dairy Farms, Pareo Farm, Pareo Farm II, Desertland Dairy, Del Oro Dairy, Bright Star Dairy and Sunset Dairy.
The plaintiffs alleged that DFA and Select violated the Sherman Act by conspiring to suppress pay to the Southwest area dairy farmers and carried out their conspiracy by such means as unlawfully sharing and coordinating pricing information and pricing-related decisions through their joint ventures or their co-owned Greater Southwest Agency Inc. (GFA) and suppressing farmers’ pay through selective non-pooling of milk, resulting in the dairy farmers being artificially underpaid for their Grade A milk, according to a court memorandum.
The defendants “have steadfastly denied liability” and “continue to deny any wrongdoing,” the July memorandum stated. However, DFA will pay $24.5 million and Select will pay $9.9 million in the settlement agreements, bringing the suit’s total monetary recovery to $34.4 million.
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