Two major dairy cooperatives agree to a US$34.4 million settlement to resolve a price-fixing lawsuit from farmers.
Dairy Giants Settle $34.4 Million Price-Fixing Case
Source: tonaquatic | BigStock.com

Cooperatives Agree to Payout Amid Antitrust Lawsuit from Farmers.

Two of the largest players in the American dairy industry, Dairy Farmers of America (DFA) and Select Milk Producers, have reached a landmark settlement, agreeing to pay a combined US$34.4 million to resolve a class-action lawsuit. The case, filed by a group of dairy farmers, alleged that the cooperatives conspired to illegally fix the price of raw fluid Grade A milk in the southwestern United States, violating antitrust laws and driving down farmer income.

According to the article, the settlement involves a payout of US$24.5 million from Dairy Farmers of America and US$9.9 million from Select Milk Producers. The lawsuit claimed the cooperatives unlawfully shared pricing data to suppress milk prices across Texas, New Mexico, and other states in the region. This financial resolution, while not an admission of wrongdoing, is a significant development in the ongoing conversation about fair practices in the agribusiness sector.

The core of the dispute centered on the alleged underpayment of milk producers in key states like Texas, New Mexico, Arizona, Oklahoma, and Kansas. The settlement covers all farmers who supplied Grade A milk in these specific areas between January 2015 and June 2025. This resolution, although still requiring judicial approval, offers a pathway for compensation for those who claim to have been financially harmed by the alleged collusion.

For the international dairy community, this case serves as a powerful reminder of the importance of market transparency and accountability. The lawsuit, brought by farmers themselves, highlights the critical role of antitrust laws in protecting producers’ interests. It shows that even large cooperative structures, designed to benefit farmers, can face legal scrutiny over their market conduct, a key topic in dairy economics.

This multi-million-dollar settlement provides a significant lesson for the entire agribusiness value chain. While cooperatives are vital for farmers, this case underscores the necessity of ethical business practices and the potential consequences of market manipulation. It’s a clear signal that the financial well-being of producers is a serious concern that can be enforced through legal action, ensuring a more level playing field for the future.

Source: Feed Strategy: Dairy cooperatives settle milk price-fixing lawsuit

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