Dean Foods Reportedly Fails to Make Federal Order Payments
According to a report in Michigan Farm News, Dean Foods has failed to make its payment obligations to at least four Federal Milk Marketing Orders (FMMOs) for April 2020 milk production.
The payments were not made in the Appalachia, Florida, Southeast and Upper Midwest FMMOs.
Citing business confidentiality concerns, Federal Order Market Administrators have declined to comment on the amount of the Producer Settlement Fund (PSF) payment obligations that have been missed. If the funds are not paid, paychecks of all producers in the affected Orders and farmers whose milk is pooled on those Orders will be impacted.
PSF payments will be the responsibility of Dairy Farmers of America and other purchasers of Dean Foods assets in May. If payment for April is made through bankruptcy settlement, farmers could eventually be paid for the April shortfall.