One Of The Oldest Cow's Milk Producers In The US Has Declared Bankruptcy
Borden Dairy Company — a US cow’s milk producer that has been in operation since 1857 — has filed for bankruptcy.
The dairy giant announced that it lost $42.4 million in 2019, and currently has debts worth “between $100 million and $500 million to more than 5,000 creditors.”
“Over the past 163 years, we have earned the distinction of being one of the most well-recognized and reputable national brands” said Tony Sarsam, Borden Dairy CEO.
“Despite our numerous achievements during the past 18 months, the company continues to be impacted by the rising cost of raw milk and market challenges facing the dairy industry” Sarsam added.
The company states that it hopes to “reorganize its finances to stay in business.”
“I am extremely confident and optimistic about our continued success in the future” said Sarsam.
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Declining Cow’s Milk Sales
In November of 2019, Dean Foods — the largest cow’s milk producer in the US — also filed for bankruptcy. The CEO of Dean Foods claimed that the success of the company had been “impacted by a challenging operating environment.”
Shortly after Dean Foods went bankrupt, the US dairy checkoff warned farmers that plant-based alternatives are the biggest threats to their business.
Cow’s milk sales have been in decline in the US since 2015 — dropping by an average of six percent year on year.
Do you think that more dairy businesses could soon close their doors? Let us know your thoughts in the comments below!
Tags: bankruptcy, Borden Dairy Company, dairy milk, Dean Foods, plant-based alternatives, vegan milk