DFA and DMS pay $50 million doled out among 9,000 Northeast dairy producers.

Jacqui Fatka, Policy editor

September 5, 2018

2 Min Read
Northeast dairy farmers receive settlement payouts

Payments are now headed to Northeast dairy farmers who were awarded $50 million during a class action lawsuit claiming that Dairy Farmers of America (DFA), Dairy Marketing Services (DMS) and Dean Foods unlawfully conspired to monopolize and to eliminate competition for the marketing, sale and purchase of raw Grade A milk in the Northeast and thereby suppressed prices lower than they would have been in a competitive market.

As part of the settlement of the lawsuit, which began in 2009, DFA and DMS agreed to pay $50 million into a settlement fund. After deducting attorneys’ fees, plus costs, expenses and incentive fees for the dairy farmers who brought the lawsuit, the net settlement fund will be distributed to members of the subclasses who file valid claims. An estimated $4,000 is headed to nearly 9,000 farms to settle the lawsuit.

In a statement, DFA and DMS said they agreed to settle with the class plaintiffs in June 2016. “We did not expect it would take until 2018 for the legal process to conclude before farmers would receive payments from the settlement fund,” they said in the joint statement. “We are pleased this matter is resolved and settlement payments are finally being distributed to dairy farmers in the Northeast.”

In addition to the $50 million settlement fund, DFA and DMS agreed to change their business practices as well as establish an advisory council member position to advocate for farmers within DFA and DMS to promote better pay prices, net income and enhanced equity for them.

Related:Deadline nears for filing for $52m dairy settlement

Dean Foods agreed to a separate $30 million settlement in 2011.

The deals covered farmers in Delaware, Connecticut, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, Virginia and the District of Columbia.

Find additional information about the settlement here.

About the Author(s)

Jacqui Fatka

Policy editor, Farm Futures

Jacqui Fatka grew up on a diversified livestock and grain farm in southwest Iowa and graduated from Iowa State University with a bachelor’s degree in journalism and mass communications, with a minor in agriculture education, in 2003. She’s been writing for agricultural audiences ever since. In college, she interned with Wallaces Farmer and cultivated her love of ag policy during an internship with the Iowa Pork Producers Association, working in Sen. Chuck Grassley’s Capitol Hill press office. In 2003, she started full time for Farm Progress companies’ state and regional publications as the e-content editor, and became Farm Futures’ policy editor in 2004. A few years later, she began covering grain and biofuels markets for the weekly newspaper Feedstuffs. As the current policy editor for Farm Progress, she covers the ongoing developments in ag policy, trade, regulations and court rulings. Fatka also serves as the interim executive secretary-treasurer for the North American Agricultural Journalists. She lives on a small acreage in central Ohio with her husband and three children.

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