Sacramento, CA: Governor Schwarzenegger has signed Assembly Bill 2284, authored by Assemblymember Cathleen Galgiani (D-Livingston), relating to dairy standards and takes effect immediately.

This important legislation will clarify and update the Milk Producers Security Trust Fund law, first enacted in 1987.  This Trust Fund protects dairy farmers from payment defaults by milk processors.  The law was enacted in the aftermath of the massive bankruptcy of Knudsen-Foremost in 1986, which left hundreds of dairy farmers unpaid for millions of dollars worth of their milk. 

“Times are tough for the little guy, and by clarifying eligibility for coverage of a fund these guys pay into will go a long way to saving the rural economy”, stated Assemblymember Galgiani.

Since 1987, California’s dairy industry has grown and changed dramatically.  The provisions of AB 2284 retain the same level of protection for farmers while better reflecting the reality of today’s dairy industry.  This legislation also provides needed clarification of temperature requirements for milk at the farm, prior to its shipment to processing plants.  And finally, AB 2284 updates California’s standard of identity for frozen yogurt, to maintain the highest quality and allow California frozen yogurt to expand the market for this popular product nationwide.