Federal court determines ORIL lacks jurisdiction over milk industry

Agriculture Secretary Josué Rivera Castro

By The Star Staff

The island Agriculture Department announced recently that the U.S. District Court has definitively resolved a case initiated over 20 years ago by milk processors against the Office of Dairy Industry Regulation (ORIL by its acronym in Spanish) over dairy prices.

The court determined that ORIL lacks jurisdiction as of Dec. 31, 2017. Without elaborating on the particulars of the decision, Agriculture Secretary Josué Rivera Castro said in a written statement that it “reaffirms the stability and legitimacy of the public policy we have defended with responsibility and transparency.”

“However, beyond this judicial determination, it is essential to call for unity among all sectors of our dairy industry,” he added.

Judge María Antongiorgi Jordán ruled that any motion filed after Dec. 31, 2017, is impermissible. She also granted the request of the Industria Lechera de Puerto Rico Inc. (Indulac) plant, owned by the Milk Producers Cooperative, to dismiss conclusions outlined in a recent report from the federal judge.

Rivera made a direct appeal to processors, ranchers and cooperatives, urging them to move past their disputes and work together for the betterment of the dairy sector, the island’s agricultural and economic development, and the sustainability of rural communities.

“Governor Jenniffer González is committed to promoting public policy that fosters a modern, resilient industry and increases agricultural production,” he said. “The doors of the Department of Agriculture are open to constructive dialogue without conditions.”

The dispute between milk processors and the ORIL revolves around the pricing and regulation of milk products. The main parties involved include dairy processors such as Indulac and the Puerto Rico Dairy Farmers Association, and ORIL, which is responsible for regulating the milk industry in Puerto Rico.

The dispute arose when Indulac challenged ORIL’s authority to set milk prices, arguing that the agency’s actions were not in compliance with procedural rules and therefore violated Puerto Rico law. ORIL’s decisions also faced criticism from other dairy processors, who claimed that the pricing policies created unfair competition and threatened the financial viability of their businesses.