Kawamura v. Organic Pastures Dairy
filed March 17, 2008, Fifth District
Cite as 2008 SOS 1565

Judgment on Pool obligations, Fees and Assessments Affirmed

Organic Pastures Dairy Company (OPDC) has been a dairy farm with no processing operations when it began in 2002. Eventually, it has established a processing plant and began packaging fluid milk and cream and making butter and cheese. These products are sold to retailers and directly to consumers. It had begun selling bulk raw milk to processing firms. These products are certified organic and are raw or unpasteurized.

When OPDC began operating its processing plant, the California Department of Food and Agriculture (the department) now required the former to participate in the pool pricing system as a handler and pay pool obligations, fees, and assessments under the following laws:

• California Milk Stabilization and Marketing Act


• Norman S. Waters-Ruben S. Ayala Milk Producers’ Security Act of 1987, and


• Section 34302 of the milk safety law

However, OPDC refused to pay.

When OPDC failed to pay, the department filed its complaint in this action. It prayed for past-due payments under each of the statutes listed above, plus civil penalties, interest, and an injunction ordering future compliance.

OPDC, in its trial brief, denied being a handler. Yet, the court ordered OPDC to pay.

On appeal, OPDC argued that it is not covered by the above statutes because it was not a “handler”.

The California Court of Appeals made the following pronouncements:

• Pooling obligations are properly imposed upon OPDC as it was covered by the statute’s definition of “handler”.


• Fees and assessments were properly imposed as it is expressly provided by law

Therefore, judgment of the Fifth District Court is affirmed.