The biggest milk producer in the US is filing for bankruptcy
Dean Foods, the biggest producer of cow’s milk in the US, has filed for bankruptcy. The decision to do so follows declining dairy sales and fierce competition from plant-based alternatives.
The dairy giant filed for Chapter 11 bankruptcy protection, and will therefore, be able to continue with production whilst arranging the sale of the company.
“Despite our best efforts to make our business more agile and cost-efficient, we continue to be impacted by a challenging operating environment,” said Eric Beringause, CEO of Dean Foods.
The dairy company has 69 facilities in 29 different states, with approximately 15,000 employees.
Dairy Farmers of America (DFA), an organization responsible for 24 percent of the current milk supply in the US, has expressed an interest in buying the failing business.