Newsline: DFA’s Growing Clout Concerns Justice Department
The potential for Dairy Farmers of America to dominate the milk market in New England is at the top of the list of concerns as the Justice Department has extended its review of the proposed HP Hood-National Dairy Holdings merger, according to the Boston Globe. H.P. Hood of Chelsea, Mass., and Dallas-based National Dairy Holdings announced plans last month to join forces to become the nation’s second largest dairy processor. As a condition of the sale, Dairy Farmers of America will have greater rights to supply milk to all Hood plants, including those supplied by the Agri-Mark Inc. cooperative in Massachusetts, and St. Albans cooperative of Vermont. The Globe recently reported that the Justice Department is concerned that New England dairy farmers who are not members of DFA will have fewer outlets to sell their milk to if the merger goes through.
The Globe also claims that DFA’s President and CEO Gary Hanman suggested the merger between Hood and NDH after Hood’s CEO John Kaneb approached Hanman with an idea about NDH’s Crowley Food’s building some synergies with Hood. Hood had been interested in acquiring Crowley before it was purchased by NDH in 2001.