The dairy industry received some more bad news today as the nation’s number two milk producer, Dean Foods, has announced plans to close plants in Pennsylvania and Massachusetts.
The moves are believed to be part of an effort to cut costs. Dean foods reported an eight percent decline in profits in the fourth quarter of 2017 and a four percent drop in the first quarter of this year. It was Shares in the company have dropped an estimated 50% in value over the past 12 months.
Earlier this year Dean Foods notified about 100 producers that their contracts would be terminated on May 31st. Industry experts cite the growing production of raw milk in the United States, while demand for fluid milk continues to drop.