Saturday, September 19, 2009

Senate Judiciary Committee Hearing

Senator Patrick Leahy held a hearing of the Senate Judiciary Committee in St. Albans today: “Crisis on the Farm: The State of Competition and Prospects for Sustainability in the Northeast Dairy Industry.” Senator Bernie Sanders also participated:

Senator Leahy dedicated the hearing to Harold Howrigan.

Much of the testimony concerned Dean Foods. Senator Sanders stated that Dean Foods held 70% of the fluid milk market in New England, and 80% or more in many other states.

The first panel of witnesses included Christine Varney, Assistant Attorney General for Antitrust, and Dr. Joseph Glauber, the Chief Economist for USDA. Ms. Varney said that the Dept. of Justice and the Dept. of Agriculture will be holding a series of joint workshops in 2010 to explore issues relating to competition in agriculture, including the dairy industry. (DOJ news release)

The second panel of witnesses included three Vermont dairy farmers (Bill Rowell, Paul Doton and Travis Forgues) and Bob Wellington, economist for Agri-Mark:

The following graph of dairy farm income and expense was on display at the hearing:

One of the policy issues discussed was the Dairy Price Stabilization Program (aka Growth Management Plan) proposed by Dairy Farmers Working Together, the Milk Producers Council of California and the Holstein Association USA.

The hearing was well attended, with many farmers, politicians and media present. Click here for links to all of the statements and testimony.

UPDATE 9/20/09: Burlington Free Press coverage of the hearing:
Milk processors under fire
Dairy industry antitrust issues not new
photo gallery
Roger Allbee's letter to the editor about the hearing

Anne Galloway's coverage of the hearing on vtdigger.org:
Antitrust division to probe complaints about Dean Foods’ alleged monopolistic practices
(includes YouTube video of some of the testimony)

UPDATE 9/21/09: Wall Street Journal coverage of the hearing (subscription may be required to read):
Top Antitrust Enforcer Supports More Scrutiny of Dairy Industry
Kylie Quesnel is quoted.