Danone announces termination of organic milk supply contracts with over 80 US farmers

The contracts of more than 80 dairy farmers who sell milk to Danone's Horizon Organic will be terminated in August 2022.

Dairy producers in Maine, New Hampshire, Vermont and parts of New York have received official letters from Danone to this effect.

Danone North America said in a statement that the processor's rising transportation and operating costs, especially in the northeast, have led to the decision. "Eighty-nine manufacturers in the Northeast received this non-renewal notice," the company said. “To facilitate a smooth transition, we are offering each producer the opportunity to enter into a new agreement to purchase their milk by August 31, 2022 to provide additional time and support,” the company said in a statement.

However, over the past 12 months, Horizon Organic has contracted over 50 new dairy producers, saying they are “a better fit for our production base. This decision will help us continue to provide our consumers with the products they love and support organic production.”

Ed Maltby, executive DIRECTOR of the Northeast Organic Dairy Alliance (NODPA), said their organization spoke with a Danone representative who confirmed that no other producers would receive termination letters from their contracts and that 50 new suppliers in Danone are suppliers from Pennsylvania, New York and Ohio, which are now part of the Danone East region.

Maltby said the reason the company cites the interruption of contracts is the distance to the processing plant, which is approximately 300 miles. He added that among the action that could be taken immediately is a consumer boycott of all Danone products, which is terminating contracts through its monopoly position, operating family farms and putting organic dairy farms out of business.

PioneerProduct based on dairyreporter.com