A decades-old family-owned milk supplier in Harrisburg has abruptly closed.
Harrisburg Dairies Inc. notified its remaining dairy farmers earlier this week it was ceasing its contracts, said Rob Barley, chairman of the Pennsylvania Milk Board.
“In all reality it’s very unfortunate,” Barley said. “The end happened quickly, but the end was coming.”
PennLive was unable to reach Harrisburg Dairies, which operates at 2001 Herr St. in Harrisburg.
The fourth-generation milk producer was established in 1931 and sold milk, iced teas, lemonades, bottled water and juices, according to its website.
Its products were distributed to several states including Pennsylvania, Maryland, New Jersey, Virginia, West Virginia, Delaware, New York and Washington, D.C.
Retailers like Dough n Joe doughnut shop in Mechanicsburg and Hampden Township, in recent weeks noticed inconsistent inventory with Harrisburg Dairies.
Owner Brad Livezey said the dairy suddenly stopped supplying chocolate milk, one of his biggest sellers at about 130 bottles a week.
“They didn’t even let us know,” he said, adding he switched to Meadowburne Farms in Wellsville.
Dairy farmer Adam Kopp, owner of Stoney Lawn Farm in Londonderry Township, said he received notice from Harrisburg Dairies on Tuesday morning. His family’s farm had been selling milk to the company for 20 years.
The third-generation farmer said Harrisburg Dairies hadn’t compensated him for his milk for two months. Fortunately, he mentioned he was able to find a new supplier.
“The main thing is our farm is our business and we sell product, which is milk. That milk was sold to Harrisburg Dairies and they in turn sold it and never paid for it. That’s criminal,” Kopp said.
Barley said he understands Harrisburg Dairies had contracts with about five dairy farmers, down from about 19 this summer.
He said all five farmers have found other suppliers. Noting the board is working to ensure that the farmers receive about 75 percent of the pay Harrisburg Dairies owes them, he said the money will come through a security fund.
“We are doing everything we can to make sure the farmers get everything they are owed,” Barley said.
He added the board was aware Harrisburg Dairies was having financial issues. In an effort to be transparent, he said he warned dairy farmers they might want to consider looking for new markets to sell their milk.
In August, Lancaster Farming reported Harrisburg Dairies halted its contracts with seven Lebanon County dairy farmers after Whole Foods Market ended its purchasing contract with the company.
Whole Foods had been purchasing about 27,000 gallons of milk weekly from Harrisburg Dairies, according to the publication.
Barley said in recent weeks the board had made some progress helping Harrisburg Dairies secure funding, but he understands more retailers ended contracts with the company late last week.
Jayne Sebright, executive director of the Center for Dairy Excellence, said it’s fortunate that the affected dairy farmers found new markets to sell their milk.
She noted it has become increasingly difficult for dairy farmers to find new markets as milk suppliers consolidate and close.
“The dynamics today in the marketplace are different than they were even a decade ago,” Sebright said.
In 2018, Harrisburg Dairies provided a lifeline to a handful of dairy farmers that had been dropped by national producer Dean Foods.