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Dairy Cooperatives Agree to $34.4 Million Settlement in Price-Fixing Case

By  |  July 29, 2025

Two major dairy cooperatives, Dairy Farmers of America (DFA) and Select Milk Producers, have agreed to pay a combined $34.4 million to settle a class action lawsuit alleging price-fixing practices in the southwestern United States. The preliminary settlement was filed in federal court in New Mexico on July 24 and remains subject to judicial approval.

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    Per a statement, DFA has agreed to contribute $24.5 million, while Select Milk Producers will pay $9.9 million to resolve the claims. The lawsuit, originally filed in 2022 by a group of dairy farmers, accused the cooperatives of colluding to manipulate milk prices and reduce compensation for producers.

    Read more: National Farmers Union and Ranch Groups Secure $83.5 Million Settlement with JBS in Antitrust Case

    According to a statement filed with the court, the plaintiffs argued that the cooperatives conspired to underpay for raw fluid Grade A milk across several states, including Texas, New Mexico, Arizona, Oklahoma, and Kansas. The alleged conduct was said to violate U.S. antitrust laws and involved unlawful sharing of pricing data, which the plaintiffs claim led to depressed earnings for dairy farmers.

    The settlement will apply to dairy producers who supplied Grade A milk in the affected regions between January 2015 and June 2025. According to a statement related to the filing, the resolution aims to compensate farmers harmed by the alleged price suppression while avoiding prolonged litigation.

    Source: Feed Strategy