Source: FOOD DIVE, 5/20/20


Dive Brief:
• An antitrust lawsuit was filed against Dairy Farmers of America in federal court Tuesday challenging its $433 million acquisition of the majority of Dean Foods' assets. Food Lion and the Maryland and Virginia Milk Producers Cooperative Association, filed the suit in North Carolina.

• The complaint claims DFA is "an aspiring monopolist" that will compel cooperatives and independent dairy farmers to either join DFA or cease to exist. 

This harm will be particularly strong in the areas around milk processing plants in North Carolina and South Carolina. This is where Maryland and Virginia Milk  Producers Cooperative Association is DFA's only significant remaining competitor for the supply of raw milk and plaintiff Food Lion is one of the largest  retailers selling milk, the lawsuit says.

 
• "With capability to wield market power at two levels of the supply chain, DFA now has both the ability and the incentive to wipe out any remaining pockets of competition," the suit said.

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