Don’t Let Giant Corporations and Factory Farms Corrupt Organics!
French dairy giant Groupe Danone (Dannon in the U.S.) has announced the proposed acquisition of WhiteWave Foods for approximately $10 billion. The deal would combine the Danone-owned and world’s largest organic yogurt brand Stonyfield with Wallaby, a rapidly growing yogurt label. The deal would also give Danone control over the Horizon organic brands, which is the nation’s largest brand of organic milk.
The U.S. government should protect market competition by enforcing laws, including the Sherman Act and Clayton Act, which decry anti-competitive practices including price fixing, monopolization, and controlling trusts. Both the Federal Trade Commission and the Department of Justice are charged with reviewing acquisitions over a certain size for anti-competitive concerns.
All organic stakeholders should be concerned by the Danone-WhiteWave acquisition. The market for organic dairy already has less competition than other agricultural sectors and is more susceptible to monopolization and price fixing. Read Full Article »