Organic dairies take it to court. (Industry Update).

Health Products Business, August, 2002

Straus Family Creamery of Marshall, Calif., and Horizon Organic Holding Corp. of Boulder, Colo., have filed a lawsuit in the U.S. District Court for the Northern District of California, stating that California's Milk Stabilization and Pooling Plans violate their state and federal constitutional rights to equal protection and due process. Both companies are also seeking an injunction to prohibit the continued application of the Milk Stabilization and Pooling Plans to their organic dairy operations. The complaint alleges that the state-imposed pooling fees require the two companies to subsidize the conventional dairy industry.

At issue are state regulations that require all California dairy processors to contribute fees into a "pool" designed to ensure...

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