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The Dairy Division’s regulation of the Louisiana dairy industry assures consumers a continued supply of high quality dairy products at fair and reasonable prices. Given the short shelf-life of fluid dairy products, orderly marketing is imperative to both the consuming public and the milk producers. The division works to help ensure that dairy farmers, processors, distributors and retailers receive a fair price and a stable market for their products.
The Dairy Division has four program areas consisting of the Milk Testing Program, the Milk Bonding Law and the Dairy Stabilization Board. The newest program for the dairy division is the coordination and determination of the Louisiana Dairy Producers’ Refundable Tax Credit Program.
Milk Testing Program
The Milk testing Program addresses the raw production and handling of milk from the farm to the processing plant. The purpose of this program is to regulate the Louisiana dairy industry as it relates to:
- Measuring, sampling and testing of producer milk
- Licensing of technical personnel
- Issuance of statistical reports
- Establishment of uniform technical procedures throughout the state
Milk Bonding Law
The Milk Bonding Program is designed to guarantee the payment for milk sold by the farmer to the processing plant or cooperative. This program is a necessary program of the Louisiana Department of Agriculture and Forestry to guarantee that our farmers will receive payment for milk purchased by all Louisiana milk plants and cooperatives.
Dairy farmers are the only farmers whose product is sold and consumed before they are paid for the milk. Previously, it has been necessary to invoke the bond on several processors who went out of business to ensure payment.
Milk Buyers Bond rules and Regulations
Dairy Stabilization Board
The Dairy Stabilization Board addresses problems created in the marketplace and provides a regulatory program that is designed to stabilize the Louisiana dairy industry in order to assure an adequate supply of healthy and wholesome dairy products.
The board is empowered to prevent persons, partnerships and corporations from using unfair methods of competition, unfair or deceptive acts or practices and disruptive trade practices in the sale of milk and milk products. Also, the board investigates complaints regarding violations of its regulations and audits the financial records of processors, distributors and retailers to determine the costs of manufacturing, selling and delivering of dairy products.