The U.S. District Court, Eastern District of Kentucky (London Division), ruled recently that Southern Belle Dairy (Southern Belle) and Dairy Farmers of America, Inc. (DFA) did not violate the antitrust laws in 2003. The complaint, filed by the U.S. Department of Justice (DOJ) and the Commonwealth of Kentucky, alleged that DFA's partial acquisition of ownership interest in Southern Belle, a milk processing facility in Somerset, Ky., violated Section 7 of the Clayton Act.
In this lawsuit, the DOJ alleged that DFA's joint venture relationships with Southern Belle and a National Dairy Holdings (NDH) Flav-O-Rich plant in London, Ky., had given DFA the opportunity to substantially reduce future competition in the sale of milk to Kentucky and Tennessee schools.