Dean Foods Bankruptcy
Dean Foods, the biggest milk company in the US, filed for bankruptcy protection, a fresh setback to a U.S. dairy industry struggling against declining U.S. milk consumption and rising competition.
The milk processor said that it plans to use the Chapter 11 proceedings to keep running the business, and address debt and unfunded debt obligations as it seeks to sell the company.
The American Dairy Coalition's Laurie Fischer says it's not just Dean Foods, as dairy in general is being squeezed on every front.
"We continue to see dairy farmers declaring bankruptcy. We see them selling their multi-generational operations. They've been squeezed by retaliatory tariffs. We have dairy producers calling me on a regular basis. They don't have the labor that they need to run their operations. They still continued to meet and receive additional costly, onerous regulations."
Meanwhile - customers are expected to receive their dairy products without any interruptions.
Dean Foods also said it is engaged in “advanced discussions” with the Dairy Farmers of America about selling “substantially” all of its assets. Even if both parties agree to the sale, the transaction would be subject to receiving higher or better offers while the company is in bankruptcy.