Dairy Association To Pay $40 Mil To Settle Claims Of False Pricing That Depressed Milk Prices
An association of dairy cooperatives will pay $40 million to settle claims by farmers that false pricing data depressed milk prices.
Twenty-six thousand farmers settled a class-action lawsuit against DairyAmerica Inc., a dairy cooperative that represents the United Dairymen of Arizona, among others.
Farmers claim the association knowingly provided false pricing data to the USDA, which depressed already low raw milk prices.
The settlement comes at a time when dairy prices are at record lows in the state.
Arizona now ranks fifth-lowest for major dairy producing states, according to the USDA's May milk production report.