A new lawsuit claims a dairy cartel inflated milk, cheese and butter prices for years.

On Oct. 5, 2026, 26 consumers filed a class action lawsuit against the National Milk Producers Federation and 13 dairy cooperatives in the U.S. District Court for the Eastern District of Virginia.

The lawsuit claims the groups paid to ship dairy products overseas to shrink the U.S. supply and push up prices for milk, cheese and butter.

The allegations

The National Milk Producers Federation, a trade group for dairy cooperatives, launched a program in 2003 called Cooperatives Working Together, which now operates as NEXT. Its members include co-defendants Darigold, Prairie Farms, Tillamook and Dairy Farmers of America, which reportedly produces nearly a third of U.S. fluid milk.

Member cooperatives allegedly pay a few cents for every 100 pounds of milk they produce into a shared fund. That fund then pays members to sell cheese, butter and other dairy products abroad. The lawsuit argues the cooperative pays for the exports because it expects the tighter supply at home to raise prices by more than the fee.

The program is still running. In its first year under the new name, ending July 2026, it helped pay for exports of more than 315 million pounds of dairy products, the National Milk Producers Federation says. Between 2003 and 2010, Cooperatives Working Together also paid farmers to slaughter entire herds, a practice that led to nearly $272 million in earlier settlements, according to the lawsuit.

The trade group's own 2018 annual report credited Cooperatives Working Together with raising farm milk prices by an average of 36 cents per 100 pounds each year over seven years. An analysis of federal data in the complaint ties months with higher dairy exports to higher farm milk prices. Store prices for milk, cheese and butter allegedly climb along with those farm prices so shoppers end up paying the difference.

A federal law called the Capper-Volstead Act lets farm cooperatives market their products together without violating antitrust law. However, the proposed class action claims that protection does extend to the program because some members do not produce milk and the law allows joint marketing and not efforts to cut supply.

The legal claims

The proposed class action brings four claims:


  • Sherman Act, the federal law against agreements among competitors that restrain trade

  • State antitrust laws in 31 states and Washington, D.C.

  • State consumer protection laws in 34 states and Washington, D.C.

  • Unjust enrichment, a claim that lets courts take back profits a company gained unfairly

The plaintiffs seek damages for dairy buyers, including up to three times their losses where state law allows, along with the profits the defendants earned from the alleged scheme and a court order shutting down the export program.

What the lawsuit means for dairy shoppers

The proposed class covers anyone in 41 states and Washington, D.C., who bought milk, cheese, butter, yogurt, ice cream or other dairy products from a store for their own use since Jan. 1, 2018. There is no settlement, no claims process and no money available at this time.