For Immediate Release
3/23/09
Contact:
Paul Rozwadowski #715-644-5079
John E. Peck #608-260-0900
Dairy Farmers File Class Action Lawsuit - Allege Corrupt Processors Have Stolen Millions Through Filing False Non Fat Dry Milk Prices With USDA
Four farmers, including Paul Rozwadowski from Stanley, WI, filed a class action lawsuit on behalf of dairy producers in twenty five states, charging that they were bilked of millions be corrupt processors due to false reporting of nonfat dry milk (NFDM) prices. Other farmer plaintiffs in the lawsuit include Gerald Carlin from Meshopen, PA; Bryan Wolfe from Rome, Ohio; and John Rahm from Versailles, OH. Three out of the four dairy producers are also members of Family Farm Defenders, based in Madison, WI.
The reported price of nonfat dry milk is used as part of the USDA's formula for pricing raw milk under the current Federal Milk Marketing Order (FMMO), which is why manipulation of NFDM reporting to the National Agricultural Statistics Service (NASS) is of such concern to farmers and consumers alike. The complaint was filed March 6 in U.S. District Court, in the Eastern District of California and covers the time period from 2002 to 2007. Those targeted by the lawsuit include Dairy America, with headquarters in Fresno, CA, as well as Land O'Lakes based in St. Paul, MN.
Dairy America sold approximately 75% of the non fat dry milk produced in the U.S. between 2002 and 2007 and exported the same to over 40 countries. Thus, Dairy America was uniquely positioned to profit from market manipulation to the detriment of family farmers, the lawsuit alleges.
The Dairy Market Enhancement Act of 2000 requires reporting from producers of butter, NFDM, cheddar cheese and dry whey to NASS for use by the USDA in determining the fair market value of raw milk. Dairy producers have seen their farmgate for raw milk drop by half over the last six months, while the retail price paid by consumers has hardly been affected. Due to this corporate collusion, thousands of U.S. family dairy farmers now face the threat of bankruptcy.
A full copy of the 20 page lawsuit is available at: www.themilkweed.com