With the recent announcement of the bankruptcy of Dean Foods, and its wholly owned subsidiaries, questions are being asked about its impacts on the United States (US) dairy industry, US producers, and other milk and dairy businesses in the US and beyond.
Several states require that licensed dealers, such as Dean, provide security for their milk purchases. For New York, this means that a default in paying for milk from NYS producers can be covered by this security, at least partially. We are becoming more aware of other states’ requirements for security, and the impacts that this situation may give upon those funds.
This is an excellent opportunity for IAMCA members to communicate and coordinate the relevant information with each other as the situation unfolds. Please feel free to reach out to other members to discuss the matter. This is one of the valuable benefits of having a membership with IAMCA.