Largest Milk Producer in US Files for Bankruptcy, Why It Happened
It wasn't like we needed another sign to know the dairy industry's tailspin is continuing. But we got one anyway, with the announcement Dean Foods, the largest milk producer in the country, was filing chapter 11 bankruptcy.
The company distributes more than 50 brands in all 50 states from milk and butter to ice cream, ready-to-drink iced coffee, and juice. Brands familiar to Central New Yorkers are Tru Moo, Friendly's Ice Cream, Garelick, Land o Lakes, and Meadow Gold to name just a few.
So how does a company operating since 1925 find themselves near the end? Industry analysts blame the company's downfall on Wal Mart starting their own milk processing company in 2017 and grocery chain Food Lion cutting ties with the company in 2018, Couple losing those 2 giant customers with consumers' declining use of milk products and it seems inevitable the company would be in trouble.
Dean Foods reports being in "advanced discussions" with the Dairy Farmers of America to sell the company. In the meantime, chapter 11 filing will allow them to continue to produce and deliver products to stores.
Read more on the company's restructuring plans and the effect it will have on dairy farms and retail stores at Dean Foods.com. The website, Fast Company.com has an interesting article on the decline of the dairy industry and it's root cause,