USA – Senator Charles Schumer has asked the Antitrust division of the USA’s Justice Department to follow closely the proposed sale of Parmalat’s subsidiaries, to ensure there is no major reduction in competition in the New York dairy industry.

Schumer expressed concern that if one of the big New York suppliers acquires Parmalat, competition to buy milk from farmers would be greatly reduced, resulting in higher prices. He added that Dean Foods could control 85-90% of the New York City market if its bid is successful.

“It’s a simple law of economics that if you have one big supplier looking to buy most of the milk from our farmers, it will be harder for the farmers to get a good price,” Schumer said.