California Milk Handler Bond Guide
If you’re applying for a Milk Handler’s license in the state of California, you’ll need this surety bond.
Bond Overview
- Who Needs It: All milk and cream producers and manufacturers in California
- Regulating Body: The California Department of Food and Agriculture (CDFA)
- Purpose: To ensure milk handlers pay producers and operate according to state laws
- Required Coverage: $5,000–$100,000
- Premium Rate: 1–10%, credit-based
Learn all about the bond requirements and application process in this guide.
What Is a California Milk Handler Bond?
A California milk handler is a financial guarantee that protects the CDFA and dairy consumers. Bulk producers or manufacturers of milk or cream products in the state are legally required to purchase this bond.
The bond is used to pay for claims that arise due to unlawful or unethical practices by the milk handler. This includes, but is not limited to, the following:
- Defaulting or not paying producers
- False or unfair advertising
- Pricing discrimination
- Bribery
Milk Handler Bond Coverage Requirements
Bond amounts are based on the number of operating milk plants a handler owns. If you have one plant, the bond amount will be calculated based on the average quantity of manufactured milk purchased daily as outlined below:
- <1,000 gallons: $5000 bond
- 1,000–4,000 gallons: $10,000 bond
- 4,000–8,000 gallons: $15,000 bond
- 8,000+ gallons: $20,000
If you have multiple milk plants, you’ll need $20,000 bond coverage per operating plant. For example:
- 2 plants: $40,000 bond
- 3 plants: $60,000 bond
- 4 plants: $80,000 bond
- 5 plants: $100,000 bond
If you exceed the gallons of milk bought under their current bond or add a new plant, you must immediately file for an additional bond to correct the difference.
How Much Do Milk Handler Bonds Cost?
California milk handler bonds cost a small percentage of the coverage amount, typically 1.5–10%. For example, you could pay as low as $75 for a $5,000 bond with excellent personal credit.
Apply for your free quote now! A surety expert will provide your personalized rate within a few hours.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
Who Needs a Milk Handler Bond?
A California milk handler purchases large quantities of unprocessed or pasteurized milk or cream to manufacture, process, and/or sell. The California Department of Food and Agriculture requires this bond as part of the business licensing process to protect consumers, farmers and the state.
How Do I Get My Bond?
SuretyBonds.com provides the fastest and easiest way to get a California milk handler bond. Just follow these quick steps:
- Apply: Submit an online quote request form
- Quote: Receive your quote within one day
- Sign: Complete the indemnity agreement
- Buy: Purchase the bond online 24/7
We’ll mail you the bond via your preferred shipping method. Be sure to file it with the CDFA as instructed.
If you have any questions, call our friendly surety experts at 1 (800) 308-4358 for assistance.
How Does a California Milk Handler Bond Work?
A milk handler bond creates a legal contract between these three parties:
- Principal: You, the manufacturer filing the bond
- Obligee: The California Department of Food and Agriculture requiring the bond
- Surety: The provider issuing the bond
This holds you financially responsible for upholding the provisions of the California Code, Division 21, Part 3, Chapters 1 and 2.
If you break the bond terms, harmed parties can file claims. The surety will pay valid claims up to the bond amount, but you must ultimately refund the surety.
How Do I Renew My Bond?
These bonds expire annually. To renew your milk handler bond, simply pay your renewal invoice when prompted.
We’ll begin contacting you by phone and email 90 days before the expiration date.
