Tillamook Creamery Sues Over Milk Deal Termination
The Tillamook County Creamery Association seeks a restraining order against Northwest Dairy Association after a quarter-century marketing agreement was terminated.
Updated on Nov. 3, 2026 in Organic Food
The Tillamook County Creamery Association has sued Northwest Dairy Association and is seeking a temporary restraining order requiring it to abide by a milk marketing agreement in place for a quarter-century. Northwest Dairy Association has announced plans to terminate both agreements as of December and has opposed the expedited restraining order request.
Why it matters
Loss of pooling status under the federal milk marketing order would threaten Tillamook's long-term milk supply and add financial pressure on regional dairy farms. The dispute centers on whether the required 180-day notice for termination was given.
The lawsuit alleges that at least 180 days' notice is required before terminating the agreement, and the termination announcement came nearly three weeks too late for a December effective date. Under a 2012 contract, Tillamook shares one-third of pooling payments with the owner of Darigold, and the court has not yet ruled on the expedited restraining order request.
The players
Tillamook County Creamery Association
A dairy cooperative based in Tillamook County, Oregon, known for its cheese and dairy products and its long-standing role in regional milk pooling.
Northwest Dairy Association
A dairy marketing cooperative in the Pacific Northwest that administers pooling under the federal milk marketing order for member and affiliated dairies.
The details
Northwest Dairy Association announced a new pooling mechanism under the federal milk marketing order that excludes Tillamook, and its termination letter did not explain a reason for ending the agreements. Without the agreement, Tillamook would not qualify as a handler and its members would be deprived of pool payments.
Timeline
2000: Tillamook entered an agreement with the owner of Darigold combining milk receipts for the Northwest federal milk marketing order.
2012: A later contract set the sharing of one-third of pooling payments with the Darigold owner.
Earlier in 2026: Northwest Dairy Association announced plans to terminate both agreements effective December.
November 2, 2026: Tillamook filed its lawsuit and requested a temporary restraining order.
Legal Context
The dispute turns on pooling rights under the federal milk marketing order that governs Northwest dairy revenue sharing. Such contractual disputes between regional cooperatives can reshape how milk receipts are distributed across the region's dairy processors.
If the restraining order is denied, Tillamook's pooling status could be lost in December, affecting the supply chain for regional dairy products. Dairy farms in the region could face added financial strain if the termination takes effect.
The takeaway
Contract notice requirements can decide major business disputes, so reviewing termination clauses matters for any cooperative member. Readers tracking Oregon's dairy sector should watch how the court rules on the restraining order.
Further reading
For more on Oregon's dairy and food production, explore Organic Food coverage.
Source note: This article includes information reported by Capital Press.
