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ALBANY, N.Y. (AP) —
A top antitrust investigator from the U.S. Justice Department is
investigating why New York farmers are getting record low payments for
milk and consumers are seeing just a fraction of the savings.
Sen.
Charles Schumer is scheduled to announce the effort Sunday. It follows
his request for a probe after his office released a report that found
the price paid to dairy farmers fell by almost half since January. At
the same time, the retail price of milk fell just 15 percent.
Christine
Varney, the assistant attorney general in charge of the federal
Antitrust Division, will meet with farmers in coming weeks to
investigate potential anticompetitive behavior in the dairy production
system. Schumer says he wants to see greater transparency in how the market works. "These anticompetitive
practices on the part of the nation's largest milk processors are
squeezing both consumers and dairy farmers while securing the middlemen
record profits," Schumer said. "The Department of Justice is doing the
right thing by sending the nation's top antitrust investigator to New
York to suss out what's going on."
Schumer requested the action
in August. He wants a review of market practices and how the price paid
to farmers is kept at historic lows without a corresponding savings to
consumers. He said the plunging wholesale prices have driven dairy
farmers out of business nationwide and is a disaster for rural
communities. The times and locations of the interviews with farmers haven't yet been set.
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