Fairlife Milk Lawsuit: Animal Welfare Claims & Supply Chain Concerns
A federal lawsuit alleging animal mistreatment at a dairy operation in southeastern New Mexico has renewed scrutiny of supply chain oversight and animal welfare standards within the dairy industry, specifically concerning the milk brand Fairlife. The case centers on Woodcrest Dairy near Roswell, New Mexico, and whether milk sourced from the farm entered the Fairlife supply chain, a claim both Fairlife and its parent company, The Coca-Cola Company, are contesting in court.
The legal challenge comes after an animal rights group recorded undercover video purportedly showing mistreatment of dairy cows at Woodcrest Dairy. According to reporting by KOB 4 Investigates, approximately 2,000 dairy cows from Woodcrest were sold in early summer 2025 to Harry Dewit of Westland Dairy in Clovis, New Mexico. Westland Dairy is part of the Blue Sky Farms cooperative, which in turn supplies milk to Select Milk Producers – the cooperative instrumental in the launch of Fairlife before its full acquisition by Coca-Cola in 2020.
The complex network of cooperatives and suppliers raises questions about traceability. New Mexico currently lacks a system for tracking milk from individual dairies to specific retail brands, making it difficult to definitively determine the origin of milk used in finished products. This lack of granular traceability is a key point of contention in the lawsuit, as plaintiffs attempt to demonstrate a link between the alleged abuse at Woodcrest and milk ultimately processed and sold under the Fairlife brand.
Select Milk Producers has argued in court filings that plaintiffs have not provided sufficient evidence to prove that Woodcrest Dairy was actively supplying milk to Fairlife during the period when the alleged mistreatment occurred. Fairlife and Coca-Cola have similarly denied that Woodcrest was a supplier during the relevant timeframe.
This is not the first time Fairlife has faced allegations of misleading consumers regarding animal welfare practices. In 2022, the company, along with Coca-Cola, agreed to a $21 million settlement in a class-action lawsuit alleging that marketing statements about animal care were deceptive. As part of the settlement, Fairlife and Coca-Cola committed to implementing animal welfare standards and undergoing third-party audits. The current lawsuit questions the effectiveness of those reforms.
The recent case also follows a related legal development where some false advertising claims against Fairlife and Coca-Cola were dismissed by U.S. District Judge Otis Wright II, while branding-related claims, including those pertaining to the Fairlife logo, were allowed to proceed. Coca-Cola was dismissed from that particular lawsuit, though plaintiffs were granted the opportunity to amend their complaint.
The allegations against Woodcrest Dairy prompted an investigation by the Chaves County Sheriff’s Office, which subsequently referred the matter to the New Mexico Livestock Board. Belinda Garland of the New Mexico Livestock Board confirmed to KOB 4 Investigates that the agency is currently investigating the matter, but acknowledged the challenges in proving extreme animal cruelty, particularly when allegations surface after the fact. The agency conducts millions of inspections annually, but Garland noted that only one case of extreme animal cruelty was investigated in the previous year.
The difficulty in establishing a clear link between the dairy farm and the final product highlights a broader issue within the dairy industry: the lack of comprehensive traceability systems. While most states, including New Mexico, conduct inspections of dairy farms, the absence of a system to track milk from farm to retail shelf complicates efforts to verify animal welfare claims and ensure supply chain accountability.
Animal Recovery Mission (ARM), the group that released the undercover footage from Woodcrest Dairy, has a history of investigating animal welfare concerns within the dairy industry. In 2019, ARM released video alleging abuse at Fair Oaks Farms in Indiana, a flagship farm associated with the Fairlife brand. However, the Newton County Prosecutor Attorney’s Office later stated that ARM’s employee had coerced the abuse depicted in the video, an allegation denied by the founder of ARM. Dr. Mike McCloskey, the founder of Fair Oaks Farms, acknowledged mistakes were made and outlined steps taken to address the issues following the release of the video.
The current lawsuit and ongoing investigation underscore the growing consumer demand for transparency and accountability in the food supply chain. As concerns about animal welfare continue to rise, companies like Fairlife face increasing pressure to demonstrate their commitment to ethical sourcing and responsible production practices. The outcome of this case could have significant implications for the dairy industry, potentially prompting greater investment in traceability systems and stricter enforcement of animal welfare standards.