Consumers accuse milk ‘cartel’ of antitrust violations

A proposed class of consumers sued 14 dairy marketing cooperatives in Virginia federal court, accusing the National Milk Producers Federation's export assistance program, now called NEXT, of acting as a cartel that restricts the domestic raw milk supply to inflate prices for butter, cheese and other staples. The complaint says members use voluntary contributions to subsidize exports, diverting milk that could otherwise reach American consumers, and that a 2026 press release touted the program's role in exporting the equivalent of 74 million pounds of butter and 127 million pounds of cheese.

The consumers point to the program's predecessor, Cooperatives Working Together, which already paid over $270 million to settle antitrust litigation in the last decade, including a $220 million settlement in 2020 over a herd-retirement scheme in which farmers killed off dairy cows to limit milk production. They also note that Dairy Farmers of America, one of the defendants, produces close to a third of the nation's fluid milk, and argue high barriers to entry keep the market tightly concentrated.

National Milk Producers Federation President Gregg Doud is quoted in a press release calling the program's future ‘bright’ and crediting it with growing demand abroad. The consumers bring claims under the Sherman Act and various state antitrust and consumer protection statutes; none of the defendants responded to requests for comment.

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