Pennsylvania Milk Marketing Board makes Milk Dealer Bond claim

Pennsylvania Milk Marketing Board

Security is used to pay producers when they are not paid by their dealer

On October 9, 2019, the Pennsylvania Milk Marketing Board issued an order making a claim against Trickling Springs Creamery’s milk dealer bond.  The Pennsylvania Milk Producers’ Security Act requires that milk dealers provide security equal to one month’s purchases from Pennsylvania producers.  The security is used to pay producers when they are not paid by their dealer.

Trickling Springs notified its producers on September 26, 2019, that it would cease operations and no longer purchase their milk effective September 27, 2019.  At the same time, Trickling Springs notified the Board that it would not be able to pay producers for milk received during September 2019.

Board auditors are still in the process of determining the amounts owed to producers who shipped milk to Trickling Springs.  When the amounts due are finalized, the Board will disburse the bond proceeds to the affected producers.

 





 

“While a situation like this is most unfortunate, thankfully this is a rare event that hasn’t occurred in over 20 years,” remarked Board Chairman Rob Barley.  “I am very grateful that the Commonwealth of Pennsylvania, through the Security Act, has given the PMMB the tools to ensure producers are paid.”

The dairy farmers affected by Trickling Springs’ closure have all found other markets.

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