Dean Foods seeks to get back money paid to dairy farmers before bankruptcy | Successful Farming
Dean Foods seeks to get back money paid to dairy farmers before bankruptcy | Successful Farming
Hundreds of dairy farmers nationwide fear they could owe substantial sums to the bankrupt dairy processor Dean Foods after the company sent out letters attempting to claw back payments made to farmers in the months preceding the company’s Chapter 11 filing last year. Dean’s actions have been harshly criticized by farm groups and, for some, underscore the dangers of a heavily consolidated dairy industry that leaves farmers with few processing options.
Dean, once the largest milk processor in the country, filed for bankruptcy last November. Farmers began receiving letters from Dean representatives in late November of this year demanding that they return money that had been paid to them by Dean in the three months preceding the company’s bankruptcy filing. Some farmers were ordered to pay as much as 1 $50,000 by mid-December or face litigation.