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Fluid milk producer flirts with bankruptcy

Photo courtesy of Borden Dairy

Dean Foods, America’s largest milk producer, last year filed for Chapter 11 bankruptcy.

Another milk producer this week announced it is struggling financially.

Borden Dairy announced this week it will be entering bankruptcy protection. The company stated, in a press release, that it “intends to use the court process to pursue a financial restructuring designed to reduce its current debt load, maximize value and position the company for long-term success.”

Chris Galen, of the National Milk Producers Federation, says these bankruptcies do not reflect the dairy industry, rather the fluid milk sector.

“What’s not concerning is the fact that, overall, dairy consumption continues to grow. In fact, that’s reassuring. What’s happened with Dean’s and now Borden is more isolated cases of companies that are in fluid milk business, which for decades has seen per-capita declines in consumption and its affected their business models,” Galen said. 

Galen does not expect major disruptions to milk production, as Borden Dairy will continue to proccess milk during this process.

“There’s not likely to be major disruptions, but it’s too soon to say,” Galen said. “We don’t know how many different farms, as well as cooperatives, may be supplying those various plants Borden is operating.”

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