HARRISBURG, Pa. — As reported last week, Harrisburg Dairies, founded in 1931, closed permanently and abruptly on Oct. 6, with same-day notice to its employees and the five remaining farms shipping milk to the nearly century old plant. Most had been shipping to Harrisburg Dairies for decades, generations.

One day business as usual, the next day permanently closed — although the ‘handwriting was on the wall’ for months, according to dairy farmer and employee accounts conveyed to Farmshine and according to the public record of Pennsylvania Milk Board (PMB) actions over the past two years related to partial and late payments for farm milk.

At this time, there are 15 dairy producers who are owed $985,012; however, October’s final payment is not yet known, according to PMB executive secretary Betsy Albright in an email response to Farmshine questions. The amount available via Harrisburg Dairies’ security fund balance and collateral bond is $730,942.29.

In a May 2025 hearing, the PMB found sufficient evidence the company violated its weekly payment order to have revoked their license, but chose not to. Instead, PMB required Harrisburg Dairies to increase its security bond, but it may still only cover 75 to 80% of what is owed for milk already received. One dairy farmer who stayed with Harrisburg Dairies until nearly the end indicated he calculated the risk and accepted it as long as he did in hopes the company could pull through and move forward.

Seven farm contracts were terminated by Harrisburg Dairies in July that matched the volume of the loss of a large contract with Whole Foods. Other farms found new buyers for their milk in September as payment delays lengthened, leaving five farms continuing to ship milk as the company struggled with further customer losses and a lengthened period of delay on the PMB-required weekly milk payments. The weekly payment order was in place since 2023 due to accruing late and partial payment violations.

The remaining five dairy farms shipping their milk at the time of the plant’s closure have all been accepted by cooperatives operating in the area, according to PMB Chair Rob Barley.

The late and incomplete payments for milk already shipped affect 15 dairy farms to varying degrees, the PMB is now involved in getting those farmers reimbursed, utilizing the security bond and collateral funds milk dealers must have in Pennsylvania. Many other states do not have such protections for dairy farms in this situation.

Last Friday, Oct. 10, Barley indicated in a phone interview that he expected payments to begin this week, estimating security instruments may cover over 75% of what is owed to the farmers.

When asked for confirmation of the status of this process, PMB Executive Secretary Betsy Albright responded in an email Tues., Oct. 14: “We have the security fund, and we’ve presented the letter of credit to the bank. They confirmed they received it, but they have not confirmed when the money will be paid to us. We’ve started the process to reimburse the farmers, which includes sending consent agreements (to them). If they all sign (the agreements), the board will issue an order directing the treasury to pay the farmers.  If any farmers don’t sign them, we will schedule a hearing.”

Since there isn’t enough available to cover what is owed, the Security Act requires PMB to distribute what is available on a pro-rata basis, according to Albright in a further explanation Wed., Oct. 15. The consent agreements sent to farmers by email (or in one case hand delivered) provide details about how the funds will be distributed. Farmers sign to waive the right to a hearing about these calculations. If all 15 agree, the payments can proceed right away instead of waiting to schedule and conduct a hearing about the method of distribution.

Meanwhile, last week’s story in Farmshine created much online interest. Customers and farmers throughout Central Pennsylvania talked about their surprise at the news. Some, however, commented on signs they saw of distress. Others took to social media to declare their disappointment, stating how iconic the brand was and how delicious their chocolate milk was.

Farmers we spoke with hope that the payments can be made soon, considering they will be waiting a month or more to receive payments for current milk shipments to their new buyers and are out the money – for now – for the shipments they already made to Harrisburg Dairies. Most of the remaining farmers indicated they were six to eight weeks behind in payments for milk shipped at the time the plant closed.

The future of the plant itself is unknown. Harrisburg Dairies does not respond to any of our phone calls or emails.