Tuesday, April 07, 2020

Dean Foods buyout approved as dairy industry struggles

"After several months of back and forth following the Dean Foods bankruptcy, the Dairy Farmers of America co-op is acquiring a majority of its assets for $433 million. Prairie Farms Dairy will also get a portion for $75 million," Beth Newhart reports for DairyReporter.com.

The decision comes over anti-trust concerns. "Grocers Stop & Shop and Food Lion have filed an objection, noting that the sale would combine the nation’s largest processor and direct-to-store distributor of fluid milk — Dean Foods — with the country’s largest raw milk supplier — DFA," Catherine Boudreau reports for Politico's Morning Agriculture. "Milk cooperatives in Maryland, Virginia and California have also raised concerns."

Some worried that the lack of competition would result in higher milk prices, Leah Douglas reports for Successful Farming. DFA has told many farmers to dump their milk in recent weeks to keep prices from bottoming out during the pandemic, P.J. Huffstutter reports for Reuters.

The acquisition highlights the dairy industry's struggles. Major dairy distributors Dean Foods and Borden both filed for bankruptcy last year, after years of declining consumer demand for liquid milk. "Since 1975, the amount of liquid milk consumed per capita in the U.S. has tumbled more than 40 percent," The Associated Press reports.

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