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Farm News: Antitrust Lawsuit Filed On Dean Foods

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Posted: 01.25.2010

Wisconsin Attorney General, J.B. Van Hollen is joining the U.S. Department of Justice and the Attorneys General of Illinois and Michigan in suing to challenge the acquisition of two Wisconsin milk plants by Dean Foods. The plants in question were properties of Foremost Farms, USA - headquartered in Baraboo, that were part of the transaction from April 2009.

“Given the importance of dairy to our state, it is vital that consumers have choices when it comes to their milk purchases and that farmers have options when selling their milk to processors,” Attorney General Van Hollen said.  “We must ensure that competition continues in our agricultural markets.”

 The complaint has been filed in federal court in the Eastern District of Wisconsin against Dean Foods.  The plants that are subject to the acquisition are located in Waukesha and DePere, Wisconsin.  The complaint alleges that the transaction will lessen competition in the fluid and school milk markets in violation of the Clayton Act, 15 U.S.C. §18.

 Assistant Attorneys General Steven P. Means and Gwendolyn Cooley represent the State of Wisconsin in this matter.

Foremost Farms USA said they are not a party to the litigation, but cannot comment on the Dean Foos matter in compliance with all applicable laws and regulations.  The company goes on to say that the action does not impact Foremost Farms' business operations or strong financial position.  The company will continue to supply bulk fluid milk to Dean Foods according to their mutually agreed upon supply contract.

Wisconsin Senator, Herb Kohl, said that ...."If the allegations are proven to be true, the lawsuit will result in lower prices for consumers and more competitive choices for dairy farmers in Wisconsin."

 

 

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