Largest Milk Producer In The US Goes Bankrupt As Vegan Alternatives Grow
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.
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Popularity Of Vegan Alternatives
A massive 91 percent drop in profits was reported by Dean Foods in 2017, and in the following year the popularity of oat milk in the US increased by 636 percent — demonstrating where consumer demand lies.
Sales of cow’s milk have been dropping by an average of six percent year on year in the country since 2015. In the last 50 years, the US has lost around one million dairy farms.
Do you think the decline of dairy will continue? Let us know your thoughts in the comments below!
Tags: bankruptcy, Business, Dairy Farmers of America, dairy farming, dairy milk, Dean Foods, plant milk, vegan, vegan milk