A milk marketer is any person who collects or procures milk from dairy producers in Minnesota or markets milk on behalf of Minnesota dairy producers (MINN. STAT. 32D.01). A milk marketer does not include:
- A person who only brokers a contract between a milk producer and a milk contractor but does not become a party to the contract, take control of the milk, or accept payment on behalf of the milk producer
- A person who only buys or sells milk on a board of trade of commodity exchange
- A person who collects milk solely from their own farm, for use in their own dairy plant
- A person who only sells milk direct to the end consumer, from their own farm
Milk Marketing Licenses
A milk marketing license is required for any milk marketer who procures more than 700,000 pounds of milk annually from Minnesota farms. The initial license is $100; annual renewals are $250. If a person operates as a milk marketer without being licensed, they may be subject to an additional no-license penalty of $250. To obtain a milk marketing license, you must submit a license application to the Minnesota Department of Agriculture (MDA) for review. Along with the application, you will need to provide:
- A report of the total milk payroll obligations that you incurred during the last completed fiscal year.
- A report of any milk payroll obligations to dairy producers that you did not pay during the last completed fiscal year, including the payroll amount.
- The number of hundredweights (CWT) procured, collected, or marketed from Minnesota producers during your last complete fiscal year.
If you are a new business that has not previously operated as a milk marketer in Minnesota, an estimate of the total milk payroll obligations and hundredweights expected during the first complete fiscal year is sufficient.
A milk marketing license is specific to a business, not a location of operation. A business with multiple locations such as dairy plants, offices, etc., only needs to obtain one milk marketing license for a primary location or headquarters, as illustrated in the image below (click to enlarge).
Milk Marketing Permits
An additional milk marketing permit is required for any person conducting any activities subject to a milk marketing license or any person that is a Minnesota milk producer, marketing milk on the producer’s own behalf. There is no cost for a milk marketing permit.
Additional Requirements
In order to maintain their license, a milk marketer must:
- Complete monthly procurement payments (MINN. STAT. 32D.11).
- Provide the MDA a list of Minnesota dairy producers from whom they are procuring milk.
- Provide dairy field service (MINN. STAT. 32D.02, subd. 6).
- Submit associated farm inspection fees as required (MINN. STAT. 32D.06 and MINN. STAT. 32D.08).
- Provide, upon request by the MDA, a financial statement to demonstrate that sufficient financial resources are available to satisfy payroll obligations for milk that is procured or collected from Minnesota dairy producers.
- Satisfy all contractual payments and agreements made with any Minnesota dairy producer who maintains a permit or certification (MINN. STAT. 32D.05 or MINN. STAT. 32D.07)
If the licensee or license applicant does not meet these requirements, the MDA may refuse to issue a new license or take action to suspend or revoke an existing license in order to protect Minnesota dairy producers from financial harm.
To begin the license and permit application process, contact the Dairy and Meat Inspection Division at 651-201-6300 or DMID.licensing.mda@state.mn.us.
