Dairy Herd Retirements Spark Antitrust Fight

Several large U.S. dairy cooperatives have been accused of violating antitrust laws by participating in a herd retirement program aimed at reducing milk supplies.

Several milk consumers have filed a legal complaint against the National Milk Producers Federation, which includes the cooperatives Dairy Farmers of America, Land O'Lakes, Dairylea and Agrimark.

The lawsuit challenges the Cooperatives Working Together program, under which dairy producers were paid to sell their dairy cattle for slaughter, thereby reducing total milk production.

"By manipulating the supply of raw milk through herd retirement, price competition has been suppressed and prices have been supported at artificially high levels throughout the United States," the complaint said.

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