Nation's Largest Dairy Producer Dean Foods Declares Bankruptcy
GOODHUE, Minn. (WCCO) -- On the Dave Buck family farm in Goodhue, the 500 dairy cows have never been more productive.
Each cow will average about 100 pounds of milk each day.
But the joy over greater efficiencies is also tempered by the troubles within the dairy industry.
"The past four years have been pretty painful, and it just keeps getting worse," explains Buck, president of the Minnesota Milk Producer's Association.
He's talking about not only the stagnant price for milk but also the slack demand for liquid milk. As dairy farmers like Dave grow more efficient, America's appetite for milk continues a troubling trend.
According to the USDA, since 1975, liquid milk consumption per capita in the United States has dropped more than 40%. That is due mostly to changing consumer habits.
Over time, non-dairy alternatives like soy and almond milk have been grabbing market share. That's just part of the reason the nation's largest producer, Dean Food, has filed for bankruptcy.
The Dallas company is saddled with huge debt and has lost money in eight of the past ten quarters.
The company blames its troubles on, "accelerated decline in the conventional white milk category."
"They were mostly in the fluid milk business and that's very competitive. I mean you'll lose a school milk contract on less than a penny a carton," explains Buck.
Still, farmers like Dave have faith the broader industry will survive.
"We need to keep innovating and find new dairy products that the consumer will enjoy," adds Buck.
While liquid milk may be in decline, the appetite for other dairy products like butter, yogurt and cheese continues to grow.
Dave says more farmers are gearing their herds to the increased demand for butterfat and protein. That reflects increased demand for dairy that's eaten and not drank.
