Americas largest Dairy Co. Dean Foods files for bankruptcy.

The largest dairy company in the country 94 year old Dean Foods makers of Land o Lakes and other brands has just filed for Chapter 11 Bankruptcy.They have previously this year taken an $850 Million Loan to keep them afloat while they try to reorganize the company.Sales of whole milk have plummeted in the USA in recent years as Dean's overall sales fell 7% this year,profit declined by 14% and the company's stock price has fallen 80% this year.Another American icon on the ropes.

 

Land O Lakes is a farmer owned cooperative, and Dean Foods was one of many members of that Co-Op that produce some of the products available under the name Land O Lakes.

 

Just copying part of the online announcement of the bankruptcy which says they own Land o Lakes??

 

interesting, they just had a 20 minute special on land o lakes company a couple weeks back on 60 minutes, no mention of financial trouble.

I wasn't aware there was a parent company.

I'm not surprised whole milk sales have plummeted but I assumed that milk in general was doing ok, we buy lots of it, I only buy whole milk when a recipe specifically calls for it, and then just a pint. We've been a skim family for 20+ years.

 

Talk to Walmart....the purveyor of Chinese imports.

 

Certainly not good news for the nations dairy farmers.I guess people today are drinking soy milk and coconut milk instead of whole milk and other products from cows.

 

people give their kids Soda instead of milk these days.. invest in dentists not farms i guess

 

lol.

Well they did mention something recently about how orange juice is struggling as well because there are so many breakfast drink options. Dairy may be suffering a similar issue if people are drinking less milk in general, less cheese too?

Or perhaps it just could be an enormous company with a mix of big-time pension obligations, bad management, long term leases, failed product offerings, legal and insurance costs, the list could go on.

My information is anecdotal but I feel like i personally use slightly less Dairy than we did in the past, slight dietary adjustment, more healthy. maybe Walmart & others are squeezing margins, very competitive.

I see Land O Lakes at the grocery but they dont have my loyalty, honestly I buy mostly Kraft or generic, and Cabot hard cheese, yum.

The only thing I can really think of is there butter and the generic is a dollar cheaper

 

Are we importing milk from China?

 

Some type of problem is attacking orange trees in Florida right now.

 

WalMart now has it's own dairy business.

 

I asked myself the same question... I think we export it to them....

 

I buy 2% milk. Lucerne coffee creamer sargento swiss and tilimook medium cheddar.. and oh schwans icecream, ohh. And costco butter.. thats my dairy consumption

 

Vegans are putting a dent in the dairy/meat business I guess. It does seemed to have gotten popular.

 

So the Trump trade war with China is what caused the bankruptcy.

 

Walmart set up their own refining facilities and have been selling milk below cost.....making up for it by selling chinese ****...to put local companies out of business. They once had a contract with Dean Foods to supply milk.

 

Seriously?

 

So you are saying Wal-Mart was selling Chinese milk. Yes or no!

 

Not really but then the whole thread is kind of silly!

 

Government price supports for the dairy industry weren’t enough I guess. They were well intentioned and everyone loved their cheap dairy products so no harm no foul I guess.

 

Another company filing bankruptcy isn't necessarily silly, but one needs to know the whys and wherefores.

 

well it certainly rose to the level of low comedy when China got involved in the discussion.

 

https://www.usatoday.com/story/money/2019/11/12/dean-foods-chapter-11-bankruptcy-filing/2574006001/

It quotes the decline of milk consumption as people look for alternatives.

 

Sometimes I forget that people who live in an urban bubble all their life don't have a clue how their food is produced.

Published a year and a half ago:

https://www.grocerydive.com/news/gr...-own-milk-processing-plant-in-indiana/533936/

"The new Walmart milk processing facility isn't cause for celebration for dairy competitors. Dean Foods lost a big chunk of business due to the Indiana plant and was forced to notify more than 100 milk producers in eight states this spring that their contracts were being canceled. While Dean will continue to provide milk to Walmart stores outside the Midwest region, the Dallas-based company and its suppliers have taken a financial hit. And though Dean has been diversifying through investments in juices, waters and plant-based products, it doesn't help that its own milk brands are higher-quality and cost more than those at Walmart, Kroger or Albertsons.

If the Indiana plant works as envisioned, Walmart may end up featuring only its own private-label processed and bottled milk in its stores, which could be more bad news for other milk processors and brands if they get edged out. Walmart could also cut milk prices for its own brand, especially if it's already saving from operating the new plant, but the shakeout period is far from over. Competition for customers in the grocery business, especially for in-demand basic items such as milk, continues to be fierce, and there's no telling what Walmart might do to maintain pricing dominance over its rivals."

^^^^^^ Like sell below cost and make up for it with their chinese dogshit sales. Do you get it now?

 

Good. I have friends who owned a dairy farm and was contracted to Dean. They are a horrible company, and deserve to go under. They have a long history of animal abuse and screwing over their contractors. They are as bad as tyson is in how they treat their animals and farmers.