Dairy Cooperatives: Role and Effects of the Capper-Volstead Antitrust Exemption
RCED-90-186
Published: Sep 04, 1990. Publicly Released: Sep 11, 1990.
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Highlights
Pursuant to a congressional request, GAO provided information on the limited antitrust exemption provided to agricultural cooperatives under the Capper-Volstead Act, particularly as it pertains to the dairy industry.
Recommendations
Matter for Congressional Consideration
Matter | Status | Comments |
---|---|---|
Congress should closely monitor USDA actions and, if USDA does not initiate active monitoring of cooperative activities, Congress should consider assigning regulatory responsibility for cooperative pricing activities to the Federal Trade Commission (FTC). If Congress assigns this responsibility to FTC, Section 20 should not be extended for subsequent fiscal years. |
Closed – Not Implemented
|
USDA is currently monitoring cooperative activities thus obviating the need for action by others. |
Recommendations for Executive Action
Agency Affected | Recommendation | Status |
---|---|---|
Department of Agriculture | The Secretary of Agriculture should direct his contingency committee that oversees Capper-Volstead to actively monitor cooperative pricing activities. |
Closed – Implemented
USDA is currently monitoring cooperative pricing activities. USDA and the Department of Justice have implemented improved information sharing policies and practices. USDA has taken administrative actions against dairy cooperatives found guilty of inappropriate use of market power.
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Topics
Agricultural cooperativesAgricultural policiesAntitrust lawCommodity marketingDairy industryMicroeconomic analysisPrice regulationPrice supportsDairy productsAgricultural marketing