No Competition

(click on images to enlarge)

The Vermont Attorney General has several items from the so-called Northeast case on its website.

One document is particularly interesting and is at the above link. The pages above are from that link.

Obviously, where there is no competition, prices to dairy farmers are depressed. this is what is known as a "horizontal agreement" and is illegal. Additionally, DFA/DMS is party to a long standing consent decree and this type of "deal" is a violation of that agreement with the U.S. Department of Justice.

This case results from government, particularly, the U.S. government not following their own laws:

The Code of Federal Regulations states:

608c(7)

(7) Terms common to all orders
In the case of the agricultural commodities and the products thereof specified in subsection (2) of this section orders shall contain one or more of the following terms and conditions:
(A) Prohibiting unfair methods of competition and unfair trade practices in the handling thereof.

Where is USDA? Where is DOJ? That's right, according to the so-called man on the street. the people want less government. Nobody wants an intrusive, oppressive government but, as the ancient Greeks said, "Who will guard us from the guards."

http://www.atg.state.vt.us/assets/files/DFOA%20Plaintiffs%20Reply%20Memo.pdfhttp://www.blogger.com/img/blank.gif

Senate Judiciary Committee?

http://vtdigger.org/2011/02/09/leahy-grassley-press-doj-usda-for-follow-up-to-agriculture-competition-workshops/


Leahy, Grassley press DOJ, USDA for follow up to agriculture competition workshops

By Press Release on February 9, 2011

FOR IMMEDIATE RELEASE
February 9, 2011

CONTACT:
Erica Chabot (w/Leahy)
202-224-7703
Erica_Chabot@Judiciary-dem.senate.gov

WASHINGTON – Senate Judiciary Committee Chairman Patrick Leahy (D-Vt.) and Ranking Member Chuck Grassley (R-Iowa) sent a letter Wednesday to Attorney General Eric Holder and Agriculture Secretary Tom Vilsack, seeking follow up on a recent series of competition workshops held by the U.S. Department of Justice (DOJ) and the U.S. Department of Agriculture (USDA).

The conferences, which were held in locations across the country from March 2010 to December 2010, focused on vertical integration, buyer power, market transparency, competition and retail pricing in several agricultural industries, including dairy, seed and poultry. In 2009, Leahy chaired a Judiciary Committee field hearing in Vermont about competition in the dairy industry, one of several hearings held by the Committee in recent years to examine antitrust issues in the agriculture sector. Now Leahy and Grassley are seeking information about DOJ and USDA plans for further action to promote competition in agriculture.

“With the conclusion of the last workshop on December 8, 2010, we would appreciate an update as to what the DOJ and USDA plans for its next steps,” the Senators wrote. “As Chairman and Ranking Member of the Committee on Judiciary, please provide to us an outline of any plans or further action items that DOJ and USDA intend to take in this area.”

The full text of the letter follows. A PDF is available online.

So, here is the link to the subcommitte on antitrust:

http://judiciary.senate.gov/about/subcommittees/antitrust.cfm

Jurisdiction: (1) Oversight of antitrust law and competition policy, including the Sherman, Clayton and Federal Trade Commission Acts; (2) Oversight of antitrust enforcement and competition policy at the Justice Department; (3) Oversight of antitrust enforcement and competition policy at the Federal Trade Commission; (4) Oversight of competition policy at other federal agencies.

The only question is where does the buck stop, if indeed, there is a buck left?

Oh yes, Patrick J. Leahy, Vermont, is the Senate Judiciary Chairman

Madison DOJ/USDA

One of the larger disappointments of 2010, and there are many, is the hearing in Madison, Wisconsin on June 25,2010 http://www.justice.gov/opa/pr/2010/June/10-at-720.html

DOJ conducted an investigation in the southeast and has boxes, upon boxes of information on DFA. There are multiple antitrust lawsuits against DFA, mainly because USDA and DOJ have not done their job.

Yet the panels are stacked with DFA people.
Jerrel Heatwole:
http://www.dfamilk.com/our-cooperative/leadership/jerrel-heatwole

John Wilson:

http://www.dfamilk.com/our-cooperative/leadership/john-wilson-0

Then there is Ed King on the board of Dairylea (district 12), a wholly owned part of DFA. http://www.dairylea.com/AboutUs/management.htm
Ed is a nominal "farmer", more a per diem farmer.

Then you have Denny Wolff, partner, Versant Strategies, and former Pennsylvania Secretary of Agriculture. http://www.versantstrategies.net/clients/ Altria, which used to be Philip Morris, owner of Kraft. Monsanto, which until recent sold Posilac. Wolff tried to work on Monsanto's behalf while Secretary in ramming through a labeling requirement on rbST. You can make an argument in favor of rbST but, it is only a microeconomic argument. In the big picture, rbST has not helped dairy farmers.

Of course what panel would be complete without Robert Yonkers, vice president and chief economist, International Dairy Foods Association.

The litmus test for these two huge government agencies, USDA and DOJ to follow would be, do those on the panels serve the public's interest. On this simple test USDA and DOJ have failed. The meeting will be a cheer leading session for the status quo.