A big agreement will help affordable milk flow into Minnesota schools.

Last week, Minnesota Attorney General Keith Ellison announced his office entered into an agreement with Dairy Farmers of America (DFA) to help dozens of school districts afford to buy milk for students through 2030.

“Milk in schools isn’t a luxury — it’s a staple and a necessity,” Ellison said. “The families of children that rely on school milk are trying to afford their lives. So are the families that produce school milk. Anticompetitive behavior in agriculture in the form of market integration is making it hard for both of them to do that. My office intervened to make sure prices of this staple can remain affordable for thousands of kids and their families, and for thousands of Minnesota taxpayers, for the next decade.”

The concern came when DFA acquired a milk-processing plant in Saint Paul called the St. Paul Facility. Until then, the St. Paul Facility and Kemps competed for the business of supplying milk to schools in more than 40 Minnesota school districts, but both Kemps and the other facility are owned by DFA.

Ellison said the agreement ensured DFA would continue to participate in the pool so farmers and small producers could continue to have access to the market.

“When DFA made the acquisition in St. Paul, while they owned Kemps, that increased concentration in the market,” Ellison said. “Generally when that happens, there is a certain fear that prices will go up, supply will go down, and consumers will get hurt and small suppliers will be also affected. Our big concern was to make sure that didn’t happen, and if there is any backsliding on that agreement, we have the right to re-negotiate.”

Ellison said he has been extremely concerned about small dairy producers.

“I’ve heard of too many young couples who are running their dairy farms talk about challenges they are facing getting a fair price,” Ellison said. “It’s important we keep our focus and attention there too. This particular acquisition of DFA made us wonder whether or not we were going to get the benefits of a competitive market. This deal ensures that we will,” Ellison said.

As part of an Assurance of Discontinuance that the Attorney General’s Office has reached with DFA, beginning in the 2020–21 through the 2029–30 school years, DFA will bid for school milk sales for those districts and programs at a price no higher than the price successfully bid by either Kemp’s or the St. Paul Facility in the 2018–19 school year, adjusted to reflect the current milk industry. This will blunt the anticompetitive edge of DFA’s purchase of the St. Paul Facility and make it easier for those districts and programs to buy milk for students at affordable prices.

A big agreement will help affordable milk flow into Minnesota schools.
Last week, Minnesota Attorney General Keith Ellison announced his office entered into an agreement with Dairy Farmers of America (DFA) to help dozens of school districts afford to buy milk for students through 2030.
&ldquo;Milk in schools isn&rsquo;t a luxury &mdash; it&rsquo;s a staple and a necessity,&rdquo; Ellison said. &ldquo;The families of children that rely on school milk are trying to afford their lives. So are the families that produce school milk. Anticompetitive behavior in agriculture in the form of market integration is making it hard for both of them to do that. My office intervened to make sure prices of this staple can remain affordable for thousands of kids and their families, and for thousands of Minnesota taxpayers, for the next decade.&rdquo;
The concern came when DFA acquired a milk-processing plant in Saint Paul called the St. Paul Facility. Until then, the St. Paul Facility and Kemps competed for the business of supplying milk to schools in more than 40 Minnesota school districts, but both Kemps and the other facility are owned by DFA.
Ellison said the agreement ensured DFA would continue to participate in the pool so farmers and small producers could continue to have access to the market.
&ldquo;When DFA made the acquisition in St. Paul, while they owned Kemps, that increased concentration in the market,&rdquo; Ellison said. &ldquo;Generally when that happens, there is a certain fear that prices will go up, supply will go down, and consumers will get hurt and small suppliers will be also affected. Our big concern was to make sure that didn&rsquo;t happen, and if there is any backsliding on that agreement, we have the right to re-negotiate.&rdquo;
Ellison said he has been extremely concerned about small dairy producers.
&ldquo;I&rsquo;ve heard of too many young couples who are running their dairy farms talk about challenges they are facing getting a fair price,&rdquo; Ellison said. &ldquo;It&rsquo;s important we keep our focus and attention there too. This particular acquisition of DFA made us wonder whether or not we were going to get the benefits of a competitive market. This deal ensures that we will,&rdquo; Ellison said.
As part of an Assurance of Discontinuance that the Attorney General&rsquo;s Office has reached with DFA, beginning in the 2020&ndash;21 through the 2029&ndash;30 school years, DFA will bid for school milk sales for those districts and programs at a price no higher than the price successfully bid by either Kemp&rsquo;s or the St. Paul Facility in the 2018&ndash;19 school year, adjusted to reflect the current milk industry. This will blunt the anticompetitive edge of DFA&rsquo;s purchase of the St. Paul Facility and make it easier for those districts and programs to buy milk for students at affordable prices.

Join Pam Jahnke for the latest farm news. Heard daily on WOZN 96.7 FM and 1670 AM in Madison Wisconsin from 5-6am. Also heard on affiliate stations all over Wisconsin.

Join Pam Jahnke for the latest farm news. Heard daily on WOZN 96.7 FM and 1670 AM in Madison Wisconsin from 5-6am. Also heard on affiliate stations all over Wisconsin.

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