Milk Dealer

The Milk Dealer Bond guarantees payment for the milk supplied by the farmers and dairies. This milk dealer bond is secured only after obtaining a license from the commissioner of the department of agriculture. Without a Milk Dealer Surety Bond or collateral surety bond approved by the department of agriculture, no dealer can either purchase or acquire milk from the producers.

An application for a license to start business as a milk dealer, sub milk dealer, cheese manufacturer and dry milk manufacturer has to be submitted to the Department of Agriculture Commissioner. The bond amount is managed by the department of agriculture, the amount depends on the amount of milk purchased on a annual basis.