Indiana Grain Company, LLC

Posted: 06/29/10

By: tomgrisafi

The Department of Justice and the U.S. Department of Agriculture have set their regulatory sights on the dairy industry, which both agencies say is consolidating more production and influence among fewer milk producers.

The two federal agencies held a joint meeting Friday in Madison, Wis., to discuss antitrust and regulatory enforcement of the dairy industry. The workshop was similar to those conducted earlier in the year regarding the poultry industry, which led to sweeping reform in antitrust rules surrounding the production and packing of poultry and other meats.

Gina Talamona, spokeswoman for the U.S. Department of Justice, said the discussions were organized at the request of Christine Varney, attorney general for the Justice Department’s Antitrust Division, and U.S. Department of Agriculture Secretary Tom Vilsack.

“There were no pre-conceived notions going into this,” Talamona said. “We are just in listening mode.”

Talamona would not say what the agencies planned to do with the information gathered at the meeting, which she called an “unprecedented coordinated effort” between the USDA and Justice Department. In May, U.S. Attorney General Eric Holder and Vilsack pledged to step up antitrust enforcement in agricultural businesses at the request of the Obama administration.

“There is a new attitude in the antitrust division,” Holder said to poultry producers. “Everyone should understand. There is no hesitancy on the part of this antitrust division, in this administration, to take action where we think it is needed. This antitrust division is open for business again.”

Discussions surrounding the poultry industry led to changed in early June, which were approved by President Barack Obama, that made it easier to file suits under the Depression-era Packers and Stockyards Act by stating that farmers don’t need to prove industrywide anticompetitive behavior to file a lawsuit under the act.

“The dairy industry has been hit particularly hard over the past 18 months, and, like other agricultural sectors, is experiencing consolidation and shrinking farm numbers,” said Vilsack in a written statement. “A fair and competitive marketplace is important not only for producers, but also for consumers.”

Bob Naerebout, executive director of the Idaho Dairymen’s Association, said the discussions are currently focusing primarily around processors in the eastern United States. Nevertheless, he said his association is keeping a close eye on the discussions.

“Anytime you have a group of federal agencies get together, there is always the concern about changes that will affect us,” he said. “I don’t know of any dairy organization that isn’t keeping an eye on this.”

Source: Times News Service