EU Agriculture Commissioner Mariann Fischer Boel has reportedly announced €280 million ($417 million) in additional subsidies to dairy farmers affected by plummeting agricultural prices. Intended to appease vocal protesters and agricultural lobbies, the aid responded to requests from 21 member states, including France and Germany, despite objections from the United Kingdom and the Netherlands. In addition, the European Union has agreed to cap milk production, although it stopped short of creating a pan-European institution to regulate the market. “We hope that we can stabilize the market with the proposals that we have today,” Swedish Farm Minister Eskil Erlandsson was quoted as saying. Meanwhile, the European Milk Board has welcomed the subsidies and production limits but noted that farmers have already lost €15 billion ($22 billion) in the current economic crisis. “That shows that 280 million euros won’t get us far,” the board president told reporters. See The Canadian Press, Daily…
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Three U.S. Senators have introduced a bill (S. 1783) that would extend mandatory country-of-origin (COOL) labeling to dairy products. The U.S. Department of Agriculture’s current COOL law took effect in 2008 and requires origin labeling on meats, nuts and raw produce, but not dairy products or processed foods. The Dairy COOL Act of 2009 extends the current law to include milk, cheese, yogurt, ice cream, and butter, but retains the exemption for processed foods. “With the discovery last year of widespread use of melamine in Chinese dairy products, consumers deserve to know whether the milk used to produce the dairy products they buy meets the high safety standards used in the U.S.,” said Senator Russ Feingold (D-Wisc.), who co-sponsored the legislation with colleagues Sherrod Brown (D-Ohio) and Al Franken (D-Minn.). Franken said the bill helps address the issue of low milk prices by helping “American dairy farmers stand out in…
An organization that seeks to advance the interests of organic and family farmers has filed a complaint with the U.S. Department of Agriculture’s National Organic Program (NOP) and state officials in Wisconsin and Minnesota, asking for an investigation of Target Corp. for alleged violations of federal organic regulations. The Cornucopia Institute contends that Target advertised Silk® soymilk “with the term ‘organic’ pictured on the carton’s label, when in fact the product’s manufacturer, Dean Foods’ WhiteWave division, has been sourcing this product line with conventional soybeans.” According to an institute press release, “Dean Foods, had quietly shifted their products away from organics,” before the Target ads appeared in newspapers throughout the Midwest. Cornucopia’s senior farm policy analyst was quoted as saying, “Major food processors have recognized the meteoric rise of the organic industry, and profit potential, and want to create what is in essence ‘organic light,’ taking advantage of the market…
A coalition of dairy farmers from the northeastern United States has reportedly filed a putative class action against the Dairy Farmers of America (DFA) and Dean Foods Co., alleging that they have monopolized the distribution of fluid milk in the Northeast, fixed prices and created an economic crisis in the industry. Allen v. DFA, No. ___ (D. Vt., filed October 8, 2009). Similar litigation is reportedly pending in a federal court in Tennessee. According to plaintiffs’ counsel, “Many dairy farmers have been forced to choose between joining DFA or DMS [Dairy Marketing Services] or going out of business. If they join, they have to pay a fee to continue to market to their own customers at prices fixed by DFA, DMS and other cooperatives. Meanwhile major milk processors Dean and HP Hood, which is part-owned by DFA, enjoy the economic benefits.” He also reportedly said that the anticompetitive milk distribution…
A Plainview, Minnesota, milk cooperative has reportedly recalled two years’ worth of food products, including instant non-fat dried milk, whey protein, and fruit stabilizers and gums for fear that they are contaminated with Salmonella. While no illnesses have apparently been linked to the products, which are sold to food manufacturers and distributors only, the recall has been further expanded to products containing these ingredients. Among the other recalled foods are instant oatmeal, hot chocolate mix, popcorn toppings and shake mixes. The U.S. Department of Agriculture reportedly detected Salmonella in a milkshake powder in June, and Food and Drug Administration investigators found the bacteria in the Plainview Milk Products Cooperative plant. See UPI.com, June 29, 2009; USA Today, July 6, 2009; FDA Press Release, July 8, 2009.
Multidistrict litigation plaintiffs who sued Aurora Dairy Corp., an accredited organic certifying agent and a number of food retailers have appealed the district court decision dismissing their claims to the Eighth Circuit Court of Appeals. In re: Aurora Dairy Corp. Organic Milk Mktg. & Sales Practices Litig., MDL No. 08-1907 (E.D. Mo., appeal noticed July 2, 2009). As noted in the June 5, 2009, issue of this Update, the district court concluded that the claims, which involved allegations that Aurora Dairy sold its milk as organic while violating national organic program requirements, were preempted by federal law and regulations. In their list of issues on appeal, the plaintiffs question the validity of this determination.
European farmers recently staged a demonstration outside a meeting of EU agriculture ministers in Luxembourg City, where protesters blocked traffic with tractors, burned a bale of hay and spilled milk in opposition to softening commodity prices. Led by Copa-Cogeca and the European Milk Board, the protesters called on “the heads of state and government to set clear political guidelines for addressing the crisis in the dairy sector,” according to a June 18, 2009, press release. “We want to draw the public’s attention to how serious the situation is,” stated Copa-Cogeca Secretary General Pekka Pesonen. “Having sustainable food production in Europe is at least as vital as having a strong banking sector.” The European Commission has reportedly reinstated export subsidies and purchasing quotas in an emergency effort to shore up dairy markets, but EU Agriculture Commissioner Mariann Fischer Boel has also urged retailers to explain why plummeting wholesale milk prices have…
The multitdistrict litigation (MDL) court in Missouri before which nearly 20 putative class actions against Aurora Dairy Corp., an accredited organic certifying agent and several retailers had been consolidated for pre-trial proceedings, has dismissed the lawsuits with prejudice finding that federal organic food laws preempt the claims. In re Aurora Dairy Corp. Organic Milk Mktg. & Sales Practices Litig., MDL NO. 08-1907 (E.D. Mo., decided June 3, 2009). Relying on a U.S. Department of Agriculture (USDA) investigation that found the dairy in violation of national organic program requirements relating to pasturing and organic management, the plaintiffs alleged violations of various state consumer protection laws, breaches of express and implied warrantees, negligence per se, negligent misrepresentation, and unjust enrichment. The court discusses at length the program under which Aurora Dairy conducted its operations with the overall supervision and control of USDA. While the court found that the litigation claims were not expressly…
A federal magistrate in Colorado has consolidated two lawsuits that address whether Aurora Dairy Corp.’s insurers are required to defend or indemnify the organic dairy in a host of consumer class actions alleging that the company falsely certified its milk as organic. ACE Am. Ins. Corp. v. Aurora Organic Dairy Corp., No. 08-1236 (D. Colo., order entered May 20, 2009). The putative class actions, consolidated before a multidistrict court in Missouri, claim that Aurora’s milk products do not conform to organic standards, citing a U.S. Department of Agriculture report that purportedly found shortcomings in Aurora’s organic operations. Among other matters, the claimants seek disgorgement for unjust enrichment. Aurora sued Nationwide Agribusiness Insurance Co. seeking a declaration that the insurer was required to defend it in at least one of the pending class actions. The dairy also sued for bad faith, breach of contract and related claims. A group of insurers…
Finding that a trial court erred in admitting evidence and instructing the jury in a lawsuit involving claims that milk permeate sickened or killed calves that were fed the product as a source of dietary energy, protein and minerals, the Ninth Circuit Court of Appeals has returned a breach-of-warranties lawsuit to the lower court for a new trial. Millenkamp v. Davisco Foods Int’l, Inc., Nos. 07-35299 & -35318 (9th Cir., decided April 14, 2009). The defendant allegedly advised the owners of a cattle operation about the use of milk permeate as a food source for their calves and then sold the product to them. When their calves fell ill and some died, the plaintiffs learned that they had stored the product at an improper temperature, “which allowed lactose to ferment into a harmful lactic acid that caused the calves to fall prey to rumen acidosis.” The plaintiffs sued for breach…
