Reaction Of Senator Patrick Leahy
To St. Albans Co-Op’s Decision
To Affiliate With Dairy Farmers Of America
February 11, 2003

  “The concentration of market and economic power in dairy processing has been accelerating, and it is drawing farmers and consumers everywhere into this vortex.  That trend made this decision all but inevitable.  I applaud the board of directors’ commitment to retain as much local autonomy and independence as possible under this agreement.

 “Vermont dairy farmers – and farmers everywhere – do better when there is more competition, not less, for their milk. 

 “St. Albans’ access to the Class I fluid milk market was put in jeopardy when the Justice Department – over my objections -- approved the Dean Foods-Suiza merger in 2000.  That merger gave DFA the exclusive right to supply fluid milk to all Dean Foods plants, including, after five years, the Stop & Shop plants now served by St. Albans.

 “I continue to oppose the proposed merger between Hood Milk and National Dairy Holdings because it will result in even more market consolidation and will further reduce the options available to Vermont dairy farmers to market their milk.

 “If approved, the Hood-NDH merger could result in Agrimark – the only other major cooperative serving Vermont’s dairy farmers – finding itself in the same situation as St. Albans, and it too may have no choice but to join DFA.”

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[For several years, Sen. Patrick Leahy has led efforts in Congress to urge federal agencies to apply antitrust laws to mergers like Dean Foods-Suiza and the proposed merger of Hood Milk and National Dairy Holdings.  Leahy also has written and introduced legislation to limit  agriculture concentration, including in the dairy sector.]