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Press Release

PENNSYLVANIA MILK MARKETING BOARD ISSUES DEAN FOODS BOND CLAIM ORDERS

July 10, 2020 | Topic: Consumers

At its July 8 Sunshine Meeting, the Pennsylvania Milk Marketing Board issued four orders making claims against Dean Foods bonds.  The bond claims cover non-payment to Dairy Farmers of America (DFA) for Pennsylvania milk shipped to Dean plants in April 2020, as well as limited underpayments for milk delivered prior to April.  The bond coverage was enough to compensate DFA for all the Pennsylvania milk it delivered to Dean Foods plants.

“The Pennsylvania Milk Producers’ Security Act requires dealers to provide bonds or other security to protect about one month’s worth of milk receipts.  We never want to have to use those bonds to pay producers, but when it’s necessary we’re glad that the Governor and the legislature have provided that protection,” emphasized Board Chair Robert Barley.

“We were able to implement the bond claim hearing process very efficiently because of the cooperation and assistance we received from all involved.  The Dean Foods estate, Dairy Farmers of America, and the Pennsylvania Attorney General all contributed to this effort,” stated Secretary Carol Hardbarger, “and I am also pleased by the work of Board staff to secure this positive outcome for Pennsylvania dairy farmers.”

“Pennsylvania dairy farms are a backbone of our economy and must have certainty to continue production during the supply chain disruption we’ve experienced during the COVID-19 pandemic,” said Attorney General Josh Shapiro. “I’m working closely with the Governor’s Office, Pennsylvania Milk Marketing Board, and Dairy Farmers of America to prevent a massive company from ripping off dairy farmers and hurting rural communities in our commonwealth.”

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