Dairy Prices: 'A Disaster in the Making'
Citing a “disaster in the making” on Vermont dairy farms, Sen. Bernie
Sanders has asked the U.S. Justice Department antitrust division to
investigate milk processors. The senator met last week with Assistant
Attorney General Christine Varney, the antitrust division chief, to
request “a very serious look” at Dean Foods Inc., which dominates some
two-thirds of the New England milk market. We’re supposed to be living
in a country that embraces competition in the marketplace and free
enterprise but that’s clearly not what’s happening when one company
controls 70 percent of the market,” Sanders told The Burlington Free
Press.
Sanders also has spoken with U.S. Agriculture
Secretary Tom Vilsack about increasing price supports paid to dairy
farmers. “Farmers have seen the price for their milk drop from $19.50
per hundred pounds a year ago to less than $11 in June. Meanwhile, Dean
Foods profits climbed from $30 million in the first quarter of 2008 to
$76.2 million for the first quarter of 2009. “To the best of my
knowledge, Dean Foods now controls about 70 percent of the liquid milk
production in New England -- 70 per cent. And while family farm incomes
are plummeting, Dean Foods has seen very significant rise in profits,”
Sanders said during a press conference on Monday at his Senate office
in Burlington.
“The low milk prices that Vermont dairy
farmers are now receiving are unsustainable,” Sanders said. “If this
continues, we will be losing more and more farms, which would be a
disaster for our state.”
