WNAX Radio | OCM Concerned With Dairy Market Concentration

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Source: WNAX Radio

Date Published: January 19, 2020

The Organization for Competitive Markets is studying the Justice Department’s investigation of Dairy Farmers of America and their potential deal to acquire the bankrupted Dean Foods. OCM Policy and Research Director Ben Gotschall says they’re very concerned about increasing concentration in the dairy industry.

He says prior to Dean Foods filing for bankruptcy there was already market concentration and following the restructuring it also led to the loss of several dairy producers.

Gotschall says one thing that could help would be if DOJ would require Dairy Farmers of America to divest some of their holdings before proceeding with acquiring Dean Foods.

Dairy Farmers of America represents roughly 22 percent of all U.S. milk processing in the country., while Dean Foods is self described as the largest processor and direct to store distributor of fresh fluid milk and other dairy and dairy case products in the United States.

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