Dean Foods “Claw-Back” could cost Montana’s Milk Producers

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Just over a year ago, Montana dairy farmers were plenty concerned when Dean Foods, owner of the Meadow Gold brand, filed for Chapter 11 bankruptcy.  Subsequently they were relieved though, when milk producers did receive payment for all the milk they sold to Meadow Gold.

Recently however, those same farmers have receive new letters from bankruptcy attorneys demanding that they now return some of their farm’s Meadow Gold milk check by this December 19th…in a “claw back” attempt that would send their money instead to some of the company’s creditors.

According to an article posted Monday on Farm Journal’s Dairy Herd Management website, farmers may have to fight this battle in court, but if they do, they should have a strong claim.

The Montana Milk Producers Association is actively engaged in this issue.  They are urging Montana dairy farmers not to agree to any payments, and it appears that the MMPA is preparing to enter into litigation if necessary.

Today those Montana farmers sell their milk to Dairy Farmers of America (DFA), a national milk marketing cooperative that involves 8,500 dairy farms in 48 states.  DFA bought the bankrupt Dean Foods earlier this year.

 

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by Taylor Brown, Northern Ag Network


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