Mon Jan 7, 2013, 04:00 PM
HereSince1628 (29,767 posts)
DId Obama's justice Dept cause closing of Golden Guernsey Dairy?
That's the claim of a person interviewed by Milw J. Sentinel...
<<"The U.S. Department of Justice intervened the next year, saying the De Pere and Waukesha plants supplied more than 50% of the school milk purchased in Wisconsin and the U.P.
Hiemke said his company has been serving the plant, delivering milk to schools across the region from the dairy, since 1976. Mapleton has 14 employees.
"This could take me right under, and I think it's going to," he said.
"The Department of Justice has no clue," Hiemke said. "They have wrecked our plant. It's the federal government going in there, and they wrecked our plant.">>
there is some question about this being a consequence of complaints of competitors in Illinois
Here is the court order referred to...
JUSTICE DEPARTMENT REACHES SETTLEMENT WITH DEAN FOODS COMPANY
Requires Dean to Divest Dairy Processing Plant Near Milwaukee and Golden Guernsey Brand Must Notify Justice Department Before Making Future Milk Acquisitions
WASHINGTON — The Department of Justice announced today that it has reached a settlement with Dean Foods Company that requires Dean to divest a significant milk processing plant in Waukesha, Wis., and related assets that it acquired from the Foremost Farms USA Cooperative, including the Golden Guernsey brand name. The proposed settlement also requires that Dean notify the department before it makes any future acquisition of milk processing plants for which the purchase price is more than $3 million. State attorneys general from Illinois, Michigan and Wisconsin joined in the department’s settlement. In addition, the attorney general for the state of Michigan filed a separate settlement to address competitive concerns regarding school milk in that state. The department said that the divestitures and settlement terms will restore competition in the sale of milk to schools, grocery stores, convenience stories and other retailers in Illinois, Michigan and Wisconsin.
The department’s Antitrust Division and state attorneys general from Illinois, Michigan and Wisconsin, filed a proposed settlement in U.S. District Court for the Eastern District of Wisconsin in Milwaukee. If approved by the court, the settlement would resolve the civil antitrust lawsuit filed by the department and the state attorneys general on Jan. 22, 2010, and would resolve the lawsuit’s competitive concerns.
“The proposed settlements restore competition so that school children and consumers in Illinois, Wisconsin and Michigan, will pay lower prices for their milk,” said Christine Varney, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The divestiture of a significant milk processing plant and the provision that requires Dean to notify the department of future milk plant acquisitions will ensure that competition remains in this important industry.”
In April 2009, Dean acquired Foremost’s Consumer Products Division, including its dairy processing plants in Waukesha and De Pere, Wis. The department learned of the transaction, which was not required to be reported under the premerger notification law, shortly after it was completed. After investigating the acquisition, the department and the state attorneys general filed a lawsuit alleging that Dean’s acquisition would eliminate substantial competition between the two companies in the sale of milk to schools, grocery stores, convenience stores and other retailers, in Illinois, Michigan and Wisconsin.
Given its size, location and distribution network, the department determined that the divestiture of the Waukesha dairy plant addressed the competitive concerns in Illinois and Wisconsin. The Waukesha plant is an efficient dairy processing plant that can serve milk retailers and schools in Milwaukee, Green Bay and Chicago, with approximately 92 percent of the population affected by the merger living within the plant’s service area.
Dean is a Delaware corporation with its principal place of business in Dallas. It is one of the largest food and beverage producers in the United States, with revenues of approximately $12 billion in 2010. Dean’s Dairy Group is the country’s largest processor and distributor of milk and other dairy products.
Foremost Farms is a member-owned business association headquartered in Baraboo, Wis., owned by approximately 2,300 farmers located in seven states. In 2008, its Consumer Products Division had net sales of $233.7 million.
The proposed settlement, along with the department’s competitive impact statement, will be published in the Federal Register, as required by the Antitrust Procedures and Penalties Act. Any person may submit written comments regarding the proposed final judgment within 60 days of its publication to Joshua H. Soven, Chief, Litigation I Section, Antitrust Division, U.S. Department of Justice, 450 5th Street, N.W., Suite 4100, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the Final Judgment upon a finding that it serves the public interest.
3 replies, 1726 views
Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
DId Obama's justice Dept cause closing of Golden Guernsey Dairy? (Original post)
Response to HereSince1628 (Original post)
Mon Jan 7, 2013, 04:06 PM
PeaceNikki (22,298 posts)
1. No. A predetory, Romney-like investment company did it. Also, Republicans were PART of this deal
Van Hollen Joins US Dept. of Justice, Illinois, and Michigan in Consent Decree to Benefit Milk Consumers
Tuesday, March 29, 2011
Dean Foods Must Sell Milk Processing Plant to
Preserve Competition in Wisconsin
MADISON — Attorney General J.B. Van Hollen today joined the U.S. Department of Justice and the States of Illinois and Michigan in filing a proposed consent decree requiring that Dean Foods sell its milk processing plant in Waukesha, Wisconsin. The proposed settlement is the result of a federal lawsuit filed by the plaintiffs last year challenging Dean Foods Company’s 2009 acquisition of the plant from Foremost Farms USA. The lawsuit alleged Dean Foods’ ownership of the plant presented serious antitrust concerns and could adversely affect the price of milk for retailers throughout Wisconsin.
“We are committed to protecting consumers by ensuring vigorous competition among milk processors,” Van Hollen said. “Selling the Waukesha plant will introduce another competitor capable of serving grocery stores, convenience stores, schools, and other milk retailers throughout Wisconsin.”
Dean Foods, based in Dallas, Texas, is the largest U.S. processor and distributor of milk and other dairy products. The complaint alleged that after the acquisition of the Waukesha plant, Dean Foods had almost 60 percent of the fluid-milk sales in Wisconsin, Illinois and Upper Michigan. According to the complaint, Dean Foods’ acquisition deprived retailers and school districts of the benefits of substantial head-to-head competition between Dean Foods and Foremost Farms.
Foremost Farms is a member-owned business association headquartered in Baraboo, Wisconsin, whose members are dairy farmers. In 2008, its Consumer Products Division had net sales of $233.7 million. Before Dean Foods’ acquisition of Foremost’s Consumer Products Division, Foremost processed its members’ raw milk at its plants in De Pere and Waukesha, Wisconsin.
Milk processors such as Dean Foods and Foremost Farms purchase raw milk from dairy farms and agricultural cooperatives to pasteurize and package. The processors then distribute and sell the milk to school districts, supermarkets, grocery stores, and other retail customers.
Dean Foods will have 90 days to sell the Waukesha plant to a new owner. If Dean Foods fails in its efforts to sell the Waukesha plant, the court will appoint a trustee, who will be empowered to sell the plant. The new owner of the Waukesha plant will have access to all of the Waukesha plant assets, including the right to continue the Golden Guernsey and La Vaca Bonita brands.
The consent decree also requires Dean Foods to notify the U.S. Department of Justice and the Wisconsin Attorney General 30 days before Dean Foods acquires any milk processing plant in Wisconsin or within 150 miles of its borders that is valued at more than $3 million.