Antitrust enforcers made merging milk monopolists divest plants to preserve regional competition. Now those plants are closing.
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In Wisconsin, some of the state’s biggest agricultural cooperatives want to weaken farmers’ control over their own cooperatives. Farmers in the state argue that the changes–in the form of amendments to the state agricultural laws–are simply meant to enhance the power of larger-scale cooperatives, and stray from the true intent and purpose of a farmer cooperative.
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Dairy Farmers of America, the largest dairy processor in the country, recently threatened to terminate its contracts with around 900 independent dairy farmers in the Northeast. Farmers in the region say this move is yet another step from DFA to undermine independent producers and to suppress earnings for farmers in the dairy market.
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Anheuser-Busch InBev is angling to control every shelf of your local beer store, and they’re doing it behind the scenes. That may seem surprising, given that the Belgian company has made headlines this year with its nearly complete $108 billion acquisition of SABMiller, the second-largest beer company in the world. But many in the industry see control over distribution, even more than deals, as the real source of ABI’s growing market power. And though the Department of Justice’s July approval of the merger seems to promote competition and place checks on the company’s pursuit of growth, those checks may not prove strong enough to rein in the beer giant.
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Dairy farmers in the Northeast and Midwest are dumping massive quantities of milk, as a sharp decline in exports has driven milk prices down to a seven-year low. Meanwhile, independent farmers and members of Congress say that a new USDA insurance program designed to keep struggling dairy farmers in business is failing to do the job.
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