As the NFU puts its weight behind dairy farmers in the UK, who, it has been revealed this week are currently paid the lowest price in Europe for their milk, dairy farmers in the USA have successfully pushed processor Dean foods into agreeing to a $140 million settlement over uncompetitive practices.

The $140 million settlement between manufacturer Dean Foods and 7,200 milk producers in several Southeastern states began in 2007. Dean’s suppliers organised and filed a class-action lawsuit, accusing the company of colluding to establish anti-competitive practices that have artificially suppressed farm milk prices over the past decade.

The Dallas-based processor owns a number of dairy brands in the USA. The settlement is currently awaiting approval in the U.S. District Court where the lawsuit was set to go to trial.

The plaintiffs, who filed the lawsuits against a number of processors, initially seeking $500 million in damages, have suggested that they may still pursue the remainder of the sum should the case go to trial with the remaining defendants.

Robert G. Abrams, an attourney for the farmers, said in a statement, “This is a very positive and successful resolution. We feel the settlement amount of $140 million speaks to Dean’s past activities in the southeast and the impact those activities had on the dairy farmers. Significantly, in addition, the settlement also reflects action that Dean has taken toward restoring a more competitive market for southeast dairy producers.”

Speaking at the Great Yorkshire Show this week, NFU president Peter Kendall outlined moves to ease the plight UK dairy farmers currently face. He said, “The dairy industry urgently needs fair terms and conditions of trade and that’s why the NFU is backing calls for a voluntary ‘code of practice’. As part of our campaign we have been lobbying MPs and dairy processors to push for the introduction of fairer contracts. We believe these will deliver negotiating strength and price transparency to dairy farmers.”