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Producer-Dealers

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Overview

A producer-dealer business is one where all milk is processed or manufactured from milk received from the producer's own farm. 

Requirements

The Application to Receive and/or Process Milk and Milk Products - Part 2 is required for all entities that process milk, dairy products, or frozen desserts, or that offer milk for sale as raw. An Application For a Milk Dealer’s License (cow’s milk only) may also be required. A license is valid for one year.

The initial license fee is $100. This covers a dealer who handles up to 4,000 pounds of milk per day during the highest month of the year. For each additional 4,000 pounds of milk handled per day, the license fee increases $40 up to a maximum of $7,500. Any milk used to make manufactured products is excluded from license fee computation. If all milk is used in manufacturing, the license fee is a flat $100. 

For license renewals, the fee is adjusted depending on the volume of milk handled the preceding year, if necessary.

Producer-dealers must also contact their Milk Marketing Order to find out the Order’s requirements to maintain producer-handler status. This requirement does not apply if no packaged sales of fluid milk products are involved. 

In addition:

  1. A producer-dealer is responsible for paying the Dairy Promotion assessments directly. This involves submitting a monthly milk production report along with payment of $.10 per cwt to the State Promotion Order (our office) and payment of $.05 per cwt to the National Dairy Promotion Order.
  2. A producer-dealer that processes more than 600,000 pounds of milk per year is required to file a monthly plant report detailing the receipt and utilization of his/her milk. These forms will be mailed directly to the producer-dealer.
  3. A producer-dealer that processes milk into a frozen dessert must submit a Frozen Dessert Manufacturing and Handlers License application.

Reports

If a producer-dealer owns the milk that is processed in a plant, they must fill out a DPO Assessment Report.

Please include:

  • Route Sales - Schedule D (Sales to the final destination before reaching the consumer. These are sales to stores, restaurants, institutions/schools/hospitals, vending machines, or homes.)
  • Subdealer Sales - Schedule H (Sales to other licensed dealers, warehouses, depots, or any distribution center that makes its own deliveries or has route sales of its own.)