US co-op Dairy Farmers of America has decided to settle a 2009 lawsuit that claimed it and Dean Foods had worked together to push down prices for raw milk in the north east of the country.

The suit accused the dairy giants of forcing dairy farmers to join DFA or its marketing affiliate Dairy Marketing Services (DMS) in order to survive.

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DFA said this week it still believed the allegations were “without merit” but admitted the cost of defending itself had become “too great”. The co-op will pay US$50m, which will be shared between it and DMS, it said.

“Under terms of the settlement, DFA has admitted no wrongdoing,” it added.

Dean Foods settled out of court three years ago, paying $140m to farmers.

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