Largest milk factory in US files for bankruptcy

Dean Foods, the largest milk processor in the United States, filed for bankruptcy on Tuesday, November 12. The company has been in financial trouble for years.  

The past few months have been particularly bad. Turnover fell by 7%, while profit lost approximately 14%. Dean Foods was faced with growing debt and was unable to fund employees' pensions. Shares have fallen by as much as 80% in the past few months. 

The dairy producer is suffering from the dwindling dairy consumption in the United States. In addition, American supermarket giant Walmart dropped Dean Foods as a supplier last year. This was obviously a big loss.

Dairy Farmers of America shows interest
As part of the bankruptcy, Dean Foods forked out $850 million from existing financiers. Rabobank, among others, is one of the lenders. With the bankruptcy that has been filed, the ailing milk processor can continue to operate for the time being.

Meanwhile, Dean Foods is looking for a buyer. The company has said it is in contact with the dairy cooperative Dairy Farmers of America for a possible acquisition.

Wouter Job

Wouter Baan is editor-in-chief of Boerenbusiness. He also focuses on dairy, pig and meat markets. He also follows (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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