NMPF, dairy co-ops agree to settle milk-price lawsuit

National Milk Producers Federation and member dairy cooperatives have agreed to pay $52 million in a class action lawsuit alleging the Cooperatives Working Together herd-retirement program reduced the supply of milk, eliminated competition and artificially raised the price of milk and milk products to consumers. Plaintiffs claimed the program — which ran from 2003 to 2010 and paid dairy farmers to destroy their herds — was responsible for the removal of more than 500,000 cows and reduced the supply of milk by approximately 10 billion pounds, according to court records.  The complaint cites studies by University of Missouri ag economist Scott Brown, commissioned by NMPF to analyze the CWT program, to allege the program was responsible for a cumulative increase in milk price revenue on the farm of $9.55 billion.  The plaintiffs claimed violation of antitrust statutes and unjust enrichment and had sought a jury trial. The lawsuit was originally filed in September 2011 in U.S. District Court in Northern California.  In Addition to NMPF, the lawsuit named Dairy Farmers of America, Land O’ Lakes, Dairylea and Agri-Mark — all dairy cooperatives that participated in the CWT program.  Herd retirement was discontinued after 2010, but CWT retains an export assistance program.