Top U.S. Dairy Co-Op Hit With Antitrust Lawsuit Over Farmer Pay

Dairy Farmers of America Inc., the leading U.S. dairy cooperative, faces federal antitrust litigation in New Mexico over its alleged scheme with another top agricultural co-op to drive down compensation for small farmers producing Grade A milk throughout the Southwest.

The lawsuit, filed Monday, accuses DFA of conspiring with Select Milk Producers Inc. “to stabilize and depress” pay for their farmer-members by sharing illegal price data through various joint ventures, skimming excess profits from milk “pooled” from several sources, and “unlawfully coordinating pricing.”

“DFA and Select Milk are exploiting their members for cheap milk to supply the cooperatives’ commercial divisions,” ...