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Harrisburg Dairies Shuts Down After Losing Key Customers

The Pennsylvania Milk Board is arranging partial payments to affected farmers through a security fund.

Overview

  • The company said it has indefinitely suspended all production and distribution as it evaluates options.
  • State officials said a security fund will cover roughly 75% of unpaid milk checks owed to producers.
  • The dairy told its remaining suppliers this week that contracts were ending and milk would no longer be accepted.
  • Farmers described missed payments, including one who said he had not been paid for two months.
  • Regulators and reports attribute the collapse to the loss of major accounts, including a Whole Foods contract and other customers shifting to a cooperative.