Proposed Garelick deal receiving antitrust review
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Garelick Farms' headquarters and production facility in Franklin
A planned deal between the owner of Garelick Farms and a major national milk cooperative is being reviewed by federal antitrust regulators.
The review, reported by The Wall Street Journal, includes analyzing what impact the Dairy Farmers of America's purchase of Garelick owner Dean Foods Co. could have on milk prices and industry competition. Dean Foods, which bought Franklin-based Garelick more than two decades ago, announced the planned deal in November at the same time it filed for bankruptcy.
Some farm groups have said the proposed Dean Foods purchase could lead to an excessive concentration of milk buyers in some parts of the country, the Journal reported. Bankruptcy hearings are expected this month, the Journal said.
Dallas-based Dean Foods Co. also owns dairy companies DairyPure and Land O Lakes, along with Wilbraham restaurant and ice cream company Friendly's.
Dean Foods said its bankruptcy affected substantially all of its subsidiaries but didn't specify which, and also said substantially all of its assets would be sold to Dairy Farmers of America if a discussed deal is completed.
Garelick Farms, which was founded in 1931 by brothers Israel and Max Garelick, has more than 1,600 employees. Dean Foods bought the company in 1997 for $294 million.
Consumption of dairy milk has fallen sharply in recent decades, according to U.S. Department of Agriculture data. Per-capita consumption peaked at 247 pounds in 1975 and '76, and first fell below 200 pounds in 1998. By 2018, consumption was down to 146 pounds per person annually.
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