United Dairymen of Arizona Shamrock Farms Company v. Ann M. Veneman, Secretary, United States Department of Agriculture

In this appeal, we consider whether under the Agricultural Marketing Agreement Act of 1937 (“AMAA” or “the Act”), as amended, 7 U.S.C. §§ 601-626 (2001), Appellants United Dairymen of Arizona (“UDA”) and Shamrock Farms, two Arizona milk producers, have standing to bring a direct suit challenging the producer-handler exemption. We conclude that Appellants cannot bring a direct suit challenging the exemption and affirm the district court’s decision.

BACKGROUND

Demand for milk fluctuates from day to day and from season to season. Due to the fluctuating demand and to prevent shortages in the milk supply, the industry must carry a constant surplus. In the 1930s, the inherent instability in milk prices together with competition for the fluid milk market prompted Congress to include milk price regulation in the AMAA. See Block v. Community Nutrition Inst., 467 U.S. 340, 341-42 , 104 S.Ct. 2450 , 81 L.Ed.2d 270 (1984). The federal government has regulated the milk market continuously since 1937. Under the AMAA, regional raw milk prices are regulated under the Federal Milk Marketing Order System. See id. (“‘[T]he essential purpose [of this milk market order scheme is] to raise…