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Judge: Hood Paid Too Much for Milk

December 15, 2005

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A federal administrative judge says USDA has been making HP Hood pay too much for milk used in its Carb Countdown, and the agency plans to pay back about $2 million to the company.

The ruling finds that USDA miscalculated in requiring that Hood buy Milk at the Class I price, and that Carb Countdown should be considered a Class II product. The decision is part of a continued argument about how to set prices for milk used in dairy drinks that cannot legally be called milk.



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