Authorities Investigating DFA

Possible price manipulation of dairy futures markets.

Federal regulators at the Commodity Futures Trading Commission are investigating possible price manipulation in the dairy futures markets by Dairy Farmers of America in which DFA may have sought to drive up milk prices through cheese trading at the Chicago Mercantile Exchange, according to published reports.

Separately, authorities at the U.S. Department of Justice are looking into a DFA statement to its members that former DFA chief executive officer Gary Hanman made "an improper and unauthorized" transfer of $1 million to former DFA chair Herman Brubaker.

DFA is the largest dairy cooperative in the U.S., with 18,000 dairy-farmer members. The cooperative, which controls about one-third of the U.S. milk supply, collects raw milk from its members and processes it for bottling or dairy products.

Source: Feedstuffs

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