WCAX.COM Local Vermont News, Weather and Sports-Vt Senators Push Dairy Antitrust Probe

Vt Senators Push Dairy Antitrust Probe

Saint Albans, Vermont - September 19, 2009

Vermont dairy farmers are getting behind a move to sue large milk producers, who have been blamed for forcing down milk prices for farmers. The idea got serious discussion Saturday at a congressional hearing with Sens. Patrick Leahy and Bernie Sanders.  

As chairman of the Judiciary committee, Leahy convened the hearing where he and Sanders heard a familiar message. Dairy farmers are facing the worst collapse of milk prices in the last forty years. As we reported two weeks ago, many Vermont farmers are pushing for a national system that would prevent oversupply.

Sheldon dairy farmer Bill Rowell, who serves as vice-president of Dairy Farmers Working Together, testified, "As a member of the Saint Albans dairy cooperative, I am very encouraged with their recent board decision to endorse the concept of a supply management program in this country."

Outside the hearing at Saint Albans City Hall, a small group quietly protested the senators over several issues, including the Acorn scandal and deficit spending. They say farmers would be hurt by the Obama administration's proposed cap and trade energy taxes.

But no one protested inside. Rather, those who came, including several declared or potential candidates for governor, heard about how the administration might go after large milk processors who have been accused of keeping the price that farmers are paid lower than it should be. Based on the most recent milk checks, Vermont farmers are getting just a little more than a dollar per gallon for fresh milk that retails for three dollars or more.

Small processors like Monument Farms are not their target. But they are looking at possible federal anti-trust prosecution against large processors, especially Dean Foods of Dallas, Texas, which dominate the national milk market. Sanders said Dean controls 90 percent of the milk market in Michigan and 70 percent in New England. He said the Bush administration stifled antitrust action in 2006 and hopes that the Obama administration will revive it.

He put the question to Christine Varney, who heads the anti-trust division at the Department of Justice. "And if it leads you to the conclusion that action should be taken, that in fact you are prepared to take action?" Sanders asked. 

Varney replied, "I can give you every assurance, Senator, that any investigation that I undertake that leads us to believe there is evidence sufficient to prosecute, will be prosecuted. There is no doubt that we will prosecute that type of activity should we find it." Applause broke out throughout the hall.

The message was that both senators expect there will be federal anti-trust prosecution against the big dairy processors. At the same time, at least some Vermonters have delivered them a message -- upset at some of their policy choices.

Andy Potter - WCAX News