Michigan dairy farmers caught up in Dean Foods bankruptcy

The Michigan Department of Attorney General and the Michigan Department of Agriculture and Rural Development (MDARD) recently learned that Dean Foods, the largest dairy processor in the United States, sent notices to a handful of Michigan dairy farmers who direct-shipped their milk to a former Dean dairy plant in Michigan’s Upper Peninsula. The notices demand the return of money paid to them by Dean in the months leading up to the company’s bankruptcy. The company filed for bankruptcy in November 2019.  

The notice is an attempt to force those dairy farmers who previously direct-shipped milk to Dean Foods to repay a portion of the amount Dean paid the farmers during the 90-day period before Dean filed for bankruptcy. While this action is a common practice under bankruptcy law, not all amounts paid in the normal course of business are subject to such claims.  

The issue was brought to the attention of Attorney General Dana Nessel last week by state Sen. Ed McBroom, R-Vulcan, who represents a few dairy farmers who direct-shipped milk to a Dean Foods plant in Marquette and may be affected. These farms are not represented by either the Michigan Milk Producers Association or the Dairy Farmers of America co-ops. A dairy inspector from MDARD  is personally reaching out to these farmers to provide them with information on how to respond to the Dean notice. 

Dairy farmers with legal questions should consult their private legal counsel.

Questions regarding the Dean Foods notice can be directed to Jeff Haarer in the Agriculture Development Division of MDARD at 517-896-2236.