DOJ Hearings on Concentration in Agriculture Continue

Hundreds of farmers reportedly attended one in a continuing series of Department of Justice (DOJ) hearings on antitrust issues in agriculture. The focus of the meeting held at the University of Wisconsin-Madison was on the dairy industry. According to U.S. Agriculture Secretary Tom Vilsack, the number of dairy farms has fallen from 111,000 in 2000 to 65,000 today. Farm consolidation and voluntary retirement are reportedly responsible for some of the losses, but most are purportedly due to farmers forced out of business by high costs and the low prices they receive for dairy products.

Some of the dairy farmers who spoke during the June 25, 2010, meeting reportedly complained about how prices are set for dairy products by mercantile exchanges; others pointed to the largest dairy companies as the source of reductions in competition. A spokesperson for a cooperatives trade association was quoted as saying, “There are five people who understand how dairy products are priced. Four of them are dead, and the fifth one is lying.” David Ward also reportedly said, “If anything comes out of this, I hope it’s that we are able to create a pricing system that is transparent and makes sense, and that nobody is manipulating anything.” The head of DOJ’s antitrust division said it is “keeping a watchful eye on this industry. We will go to court and block mergers” that are anticompetitive. See Journal Sentinel, June 25, 2010.