Northeast Dairy Farmers Sue Milk Handlers

DAVE GRAM

MONTPELIER, Vt. (AP) — A group of dairy farmers is suing four milk marketing firms, saying they've engaged in monopolizing the market into which farmers have had to sell milk, fixed prices and created an economic crisis in the Northeast dairy industry.

The Washington-based law firm Cohen Milstein says it expects many farmers will join a class action suit against Kansas City-based Dairy Farmers of America and Dallas-based Dean Foods Co.

The suit alleges DFA and Dean have seized effective control of the region's dairy industry and are forcing farmers to join DFA or its marketing affiliate Dairy Marketing Services to survive. DMS and HP Hood also were named as defendants.

Hood spokeswoman Lynne Bohan said the company had not seen the lawsuit and could not comment. DFA issued a statement calling the allegations "without basis."

"We are continuously looking for additional ways to increase dairy farmer pay price and net returns, not suppress them, and have been successful in doing so," DFA said.

A message left at Dean Foods was not immediately returned.