Organic Valley and other brands including Aurora and Horizon organic dairies have filed a lawsuit against the Federal Milk Marketing Orders program.
The Coalition for Organic Dairy Exemption, which includes seven Organic Valley farmers, has filed a suit saying they should get compensation for six years of marketing order payments, Wisconsin Public Radio reported.
The federal organization regulates how dairy processors buy milk from farmers. It sets a minimum price for milk based on its class, or how the milk is used. Revenue from milk is distributed to producers who make products like cheese or yogurt.
The coalition is against the revenue collection and distribution, as milk for drinking is organic dairy’s biggest revenue earner.
According to Adam Warthesan, Vice President of Government & Industry Affairs at Organic Valley, since 2006, over $400 million has been paid into the marketing order system by organic processors.
“For a co-op like Organic Valley, that’s tens of millions of dollars a year that are being taken out of our farmers pockets,” Warthesan said.
