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Danone-owned Horizon Organic has announced plans to terminate contracts with all its organic dairy farmers in Vermont and other parts of northeast US, effective next year. 

Danone said that 89 producers across northeast US received a non-renewal notice, meaning they will lose their contracts by the end of August 2022. The company cited operational and transportation costs as a core reason for the termination. 

"We greatly value our relationships with our farming partners and did not make this decision lightly," said a spokesperson for Danone North America. "Growing transportation and operational challenges in the dairy industry, particularly in the northeast, led to this difficult decision."

"89 producers across the northeast received this non-renewal notice. To help facilitate a smooth transition, we are offering each producer the opportunity to enter into a new agreement for us to purchase their milk until August 31, 2022, to provide additional time and support."

The spokesperson continued: "We will be supporting new partners that better align with our manufacturing footprint. We are committed to continuing to support organic dairy in the east, and in the last 12 months alone, we have onboarded more than 50 producers new to Horizon Organic that better fit our manufacturing footprint. This decision will help us continue providing our consumers with the products they love."