No. 1 milk company declares bankruptcy amid drop in demand

Top Stories

FILE – In this Dec. 4, 2013, file photo Jessica Walton, of Guthrie, Okla., reaches for a container of milk at a grocery store in Edmond, Okla. On Tuesday, Nov. 12, 2019, Dean Foods, the nation’s largest milk processor, filed for Chapter 11 bankruptcy protection and said it may sell the company off to the Dairy Farmers of America. (AP Photo/Sue Ogrocki, File)

Associated Press: Dean Foods, America’s biggest milk processor, filed for bankruptcy Tuesday amid a steep, decades-long drop-off in U.S. milk consumption blamed on soda, juices and, more recently, nondairy substitutes.

The Dallas company said it may sell itself to the Dairy Farmers of America, a marketing cooperative owned by thousands of farmers.

“Despite our best efforts to make our business more agile and cost-efficient, we continue to be impacted by a challenging operating environment marked by continuing declines in consumer milk consumption,” CEO Eric Berigause said in a statement.

Since 1975, the amount of milk consumed per capita in America has tumbled more than 40%, a slide attributed to a number of reasons but mostly the rise of so many other choices, including teas, sodas, juices and almond and soy milk.

That has hit dairy farms and milk sellers hard, leading some smaller family farmers to quit the business.

Another blow to Dean Foods came when Walmart opened its own milk processing plant in Indiana last year.

Dean Foods has lost money in eight of its last 10 quarters and posted declining sales in seven of the last eight.

The company said it will continue operating normally while it puts its finances in order under Chapter 11 bankruptcy. It has lined up about $850 million in financing from lenders.

Its stock rose 2.3% in morning trading.

Copyright 2020 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Recent Videos

KX Storm Team #OneMinuteForecast w/Tom Schrader 4/8

Thumbnail for the video titled "KX Storm Team #OneMinuteForecast w/Tom Schrader 4/8"

Could we see one of the coldest Easter Sundays in 20 Years?

Thumbnail for the video titled "Could we see one of the coldest Easter Sundays in 20 Years?"

KX WORK FROM HOME

Thumbnail for the video titled "KX WORK FROM HOME"

Amber's Wednesday morning #OneMinuteForecast 4/8

Thumbnail for the video titled "Amber's Wednesday morning #OneMinuteForecast 4/8"

A cold & windy Wednesday

Thumbnail for the video titled "A cold & windy Wednesday"

Track and Field

Thumbnail for the video titled "Track and Field"

Softball

Thumbnail for the video titled "Softball"

Trinity Health Update

Thumbnail for the video titled "Trinity Health Update"

BSC All American

Thumbnail for the video titled "BSC All American"

Food Stamp Delivery Issues

Thumbnail for the video titled "Food Stamp Delivery Issues"

Tuesday, April 7th, 2020 - KX Storm Team Evening Forecast - Dave Holder

Thumbnail for the video titled "Tuesday, April 7th, 2020 - KX Storm Team Evening Forecast - Dave Holder"

Road Work

Thumbnail for the video titled "Road Work"

Weather and COVID-19

Thumbnail for the video titled "Weather and COVID-19"

KX Storm Team Full Evening Forecast w/Tom Schrader 4/7

Thumbnail for the video titled "KX Storm Team Full Evening Forecast w/Tom Schrader 4/7"

Surprise Birthday

Thumbnail for the video titled "Surprise Birthday"

YHF

Thumbnail for the video titled "YHF"

Berthold Essentials

Thumbnail for the video titled "Berthold Essentials"

Trimlight Gender Reveal

Thumbnail for the video titled "Trimlight Gender Reveal"

Amber's Tuesday morning #OneMinuteForecast 4/7

Thumbnail for the video titled "Amber's Tuesday morning #OneMinuteForecast 4/7"

Tuesday is the last really warm day for a while

Thumbnail for the video titled "Tuesday is the last really warm day for a while"
More Video

KX News Trending Stories

Don't Miss

Daily Pledge

More Daily Pledge