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    ]No. 1 milk company declares bankruptcy amid drop in demand-----------------------------------oh shi tt--------------------------dave



    FILE- In this June 29, 2017, file cows stand in stalls at dairy farm in Sauk City, Wis. Americans are not drinking milk like they used to for a number of reasons, the most prevalent being that there is so much more to choose. We've simply diversified our mealtime and snacktime routines. Dean Foods, America's biggest milk processor, filed for bankruptcy Tuesday amid a steep, decades-long drop-off in U.S. milk consumption blamed on soda, juices and, more recently, nondairy substitutes.
    The Dallas company said it may sell itself to the Dairy Farmers of America, a marketing cooperative owned by thousands of farmers.
    "Despite our best efforts to make our business more agile and cost-efficient, we continue to be impacted by a challenging operating environment marked by continuing declines in consumer milk consumption," CEO Eric Berigause said in a statement.
    Since 1975, the amount of milk consumed per capita in America has tumbled more than 40%, a slide attributed to a number of reasons but mostly the rise of so many other choices, including teas, sodas, juices and almond and soy milk.
    That has hit dairy farms and milk sellers hard, leading some smaller family farmers to quit the business.
    Another blow to Dean Foods came when Walmart opened its own milk processing plant in Indiana last year.
    Dean Foods has lost money in eight of its last 10 quarters and posted declining sales in seven of the last eight.
    The company said it will continue operating normally while it puts its finances in order under Chapter 11 bankruptcy. It has lined up about $850 million in financing from lenders.
    Its stock rose 2.3% in morning trading.


    Last edited by davidm479; 11-12-2019, 11:53 AM.

  • #2
    Well dang it 479, you sure it isn't President Trump's FAULT too....do Chinese drink milk or soymilk?

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    • #3
      people just are not drinking enough milk I do not know the trend but the Dairy man is in the cross hairs------------------------------dave--------------------------old *** hole could help by making a commercial though


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      • #4
        I used to say that Deans and DFA deserved each other- using some of the same shennanagins [sp] to screw the producer. DFA never wanted to maintain their plants, only to control the milk. The only time Deans made money was when milk was low priced, and the last 2 years even that hasn't worked. Now DFA will have to have plants, and maintain them, and since they are a co-op, watch those so called 'profits' turn into a $1cwt. deduction for maintenance. Anybody out there enjoy farming with 30 year old "antiques"? Try pushing them 24/7/365.

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        • #5
          A few more details in this article...
          Company in advanced discussions with Dairy Farmers of America regarding potential sale.

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          • #6

            I can remember back in the day a family could milk 30 head and make a good living enough to send their kids to collage in the 70s ower county had over 30 dairy's in it and we raised alfa and all kinds of hay and feed for the dairy's now their is only one struggling dairy left and I give it no hope a sad event ----------------------------dave

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            • #7
              Yes, and as I have stated before, I have NEVER owned a dairy cow, but I have worked/milked at a few, besides milking growing up, so my knowledge is all from
              the outside. I did form the conclusion early in life I didn't want to milk, and after getting MARRIED to Marilyn, two/2 marriages at the same time was NOT in my interest.

              In the growing up part, hand milking, taking the cream to the railroad depot in 4 large plastic bags encased in a yellow cardboard box for shipment to Galva Creamery. I remember
              using the cream cans, but was NOT old or big enough to handle them at the time.

              Much like chickens and eggs, and the railroad shut down, bad enough being at the end of the track, but NO railroad meant trucks, more trucks....

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              • #8
                Originally posted by PERCY View Post
                I used to say that Deans and DFA deserved each other- using some of the same shennanagins [sp] to screw the producer. DFA never wanted to maintain their plants, only to control the milk. The only time Deans made money was when milk was low priced, and the last 2 years even that hasn't worked. Now DFA will have to have plants, and maintain them, and since they are a co-op, watch those so called 'profits' turn into a $1cwt. deduction for maintenance. Anybody out there enjoy farming with 30 year old "antiques"? Try pushing them 24/7/365.

                I'll second that motion Percy .
                The thing that eats me is the fact that all the Deans Mucky Mucks will walk away with Great retirements , Huge pensions , and Large Portfolios . Meanwhile , a lot of farmers have lost there farms , walked away broken , and ate a lot of equity , all because Deans and DFA manipulated milk prices and only made profits off their own farmers losses .
                But , farmers keep allowing it and keep producing more .

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                • #9
                  Dairy farmers and their lenders are their own worst enemies. When times are good and prices are decent, farmers expand production to capture some illusive profits

                  Prices go down because of imports and over production

                  Prices are down, so now farmers and their bankers expand production even further to capture the very small profit margins available/ Some smaller/older farmers sell out. Some BTO's fail ore just say f--k it. Drought in New Zealand and the cycle is restarted

                  Its not Deans or DFA or even vegans [bossey huggers] . Its farmers and some times politicians

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                  • #10
                    Up till the last 3 days, milk prices led by advancing cheddar cheese prices have risen substantially. But this week the cheddar market has dropped nearly 40 cent/pound. That means milk will drop about $4.00/hundred wt.

                    Not going to help the mood of dairy farmers around here. Its been a tough year with low prices for dairy, and expected lower prices because of non-dairy products pretending toi be nutritious. The average farmer this year is seeing a 7 pound / cow reduction in milk production from poorer quality corn products and low digestibility in this years hay products

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                    • #11


                      another one bites the DUST-------the carnage is starting or is it continues---------------------------------------------------------------------------------------------------------dave------------Borden Becomes Second Big U.S. Milk Producer to File for Bankruptcy BloombergJanuary 6, 2020,






                      Borden Becomes Second Big U.S. Milk Producer to File for Bankruptcy -- Borden Dairy Co. filed for bankruptcy, becoming the second major U.S. milk seller to do so in two months as competitive pressures, declining consumption and falling profits made its debt load unsustainable.
                      Known for its mascot Elsie the Cow, the Dallas-based company listed assets and liabilities of between $100 million and $500 million in its Chapter 11 filing in Delaware. The company, founded more than 160 years ago, said in a statement that normal operations will continue while it works out a recovery plan.
                      A boom in dairy alternatives like soy, rice and nut milk, along with rising prices for raw milk have put the squeeze on Borden, Chief Financial Officer Jason Monaco said in court papers. Added pressure came from retailers investing in their own low-cost dairy products.
                      “While milk remains a household item in the United States, people are simply drinking less of it,” Monaco said. “In parallel, since the turn of the century, the number of U.S. dairy farms has rapidly declined.”
                      Higher Costs
                      That’s choking supply, with the price of raw milk up 27% since January 2019 and expected to rise more, even as retail prices and margins are dropping, court papers show. The same trends helped drive Borden’s larger rival, Dean Foods Co., to file for bankruptcy on Nov. 12.
                      Private equity firm ACON Investments LLC and affiliates acquired Borden in 2017 and the company received debt facilities from GSO Capital Partners and PNC Bank, according to a statement at the time.
                      Affiliates of KKR Credit Advisors US LLC and Franklin Square Holdings LP now hold $175 million of Borden debt in the form of a term loan, while PNC holds a $30 million term loan and a $75 million revolving loan.
                      “Borden is Ebitda-positive and growing, but we must achieve a more viable capital structure,” Chief Executive Officer Tony Sarsam said in a statement, referring to the widely followed profit measure of earnings before interest, taxes, depreciation and amortization. “This reorganization will strengthen our position for future prosperity.”


                      Last edited by davidm479; 01-06-2020, 12:22 PM.

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                      • #12
                        Hey Dave, It was so nice not to see my name as the last poster on the dairy thread that In thought I could wait before answering.

                        Fluid milk processors are in big trouble. Too much debt too many pension commitments.

                        Fake milk from so many sources. A few taste OK The rest resemble cow pizz.

                        One of our biggest threats is vegan propaganda. It may be false, but the vegan movement is creating some real problem for animal agriculture. They are running an effective campaign that will hurt all types of agriculture down the road. These products are being developed by well known big money companies who used to champion animal agriculture. I'm afraid there will be a gradual decline in dairy and other agricultural enterprises .

                        One thing that really hurts small towns and the dairy industry is the sharp decline in birth rates among white adults. Kids were and still are the biggest milk consumers but they just ain't making white kids as often It may be racist, but our nation's population is going down and brown And I DON'T MEAN CHOCOLATE MILK

                        This bankruptcy of Deans and Bordens will result in those companies eliminating some debt and pensions but we really need more demand for our products or much lower production

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                        • #13
                          ]Wisconsin lost 10% of its dairy farmers in 2019, marking its biggest decline ever as Trump's trade wars raged January 14, 2020, 7:15 AM CST



                          IN the 80s we had the most dairy's in the state in my county we lost ower last dairy two weeks ago now we are all beef cows and a little row crop a sad day has come I have sold these guys a lot of hay in the past---------------------dave










                          Wisconsin shed 10% of its dairy farmers last year, according to data from the state's Department of Agriculture, Trade, and Consumer Protection.

                          It marked the biggest drop in a single year, and underscored the negative impact of Trump's trade war in a state critical to his re-election bid.

                          Last year, China slashed its purchases of American dairy products by 50%, helping to throw scores of farmers out of business.

                          The business environment has particularly worsened for small farmers.

                          Visit Business Insider's homepage for more stories

                          Wisconsin shed 10% of its dairy farmers last year, data from the state's Department of Agriculture, Trade, and Consumer Protection shows.
                          It marked the biggest one-year drop on record, and underscored the negative impact of Trump's trade war on a swing state critical to his re-election bid.
                          In 2019, Wisconsin lost 819 dairy farms, the department said, leaving 7,292 dairy farms in place. The state leads the nation in the number of farm bankruptcies, according to the American Farm Bureau .
                          "Producers have suffered without market controls to put the brakes on when demand is lower. The trade tariffs only added salt to the wound," said Julie Keown-Bomar, executive director of the Wisconsin Farmers Union, in an email.
                          The group called for additional growth management to allow "for reasonable controls in the marketplace."
                          After Trump launched his trade war against China and other friendly nations in 2018, China responded by slapping hundreds of billions of dollars worth of tariffs on American products.
                          Last year, China slashed its purchases of American dairy products by 50%. Combined with falling milk prices, the trade war has thrown many farmers out of business. The economic environment has worsened considerably for small dairy farms in particular.
                          The state's coveted 11 electoral votes went to Trump by 23,000 votes in 2016 — or less than one percentage point — a razor-thin margin that promises to make it another key battleground in the 2020 election. Additional volatility could weaken his support among farmers, though their backing remains strong.
                          Farmers have suffered significant business losses because of the trade war, resulting in a $28 billion bailout package that's double the amount the government forked over to Detroit automakers
                          Still, a greater share of that aid may be going to richer farmers. The Environmental Working Group, a nonprofit organization, said in a study released in November that wealthier farmers have drawn larger cash payments compared to poorer ones.
                          "If we don't begin to protect dairy producers with reasonable market mechanisms, only those large, corporate dairy farms that can cut their input costs to the shearest margins will be the ones to survive," Keown-Bomar said.
                          Americans have also borne the brunt of Trump's tariffs. A paper released this week from the National Bureau of Economic Research found that consumers paid for "approximately 100 percent" of the tariffs in the form of increased prices.


                          Last edited by davidm479; 01-14-2020, 07:45 PM.

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                          • #14
                            That's sort of a fake news report. China's dairy imports are very small no matter what. they get the dairy they need from NZ and Australia..

                            The dairy economy is no worse or better than the great 0bamanation of years past.

                            The average farmers in Wisconsin are nearing retirement age [70]. They want out

                            Too many years of getting by with the old stuff. Family members not interested in running a farm while one of the team works out to get medical coverage and pay for the farming hobby of the other partner.

                            The amount of milk produced in Wisconsin is still too much. We need more Michigan and Minneysoda dairy farmers quitting. That way there will be much less cherese with that [Made in Wisconsin] label

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                            • #15
                              Yup King pretty well nailed the reality of dairying today . WE are pretty much the last generation that will substitute sweat and nose to the grindstone hard work , for what money and modern efficiency will get you . I'm not sure that is necessarily a bad thing . New equipment and updating is so overpriced I'm not sure even the well to do can afford it . Somewhat knowing the dairy business I know If I had a bottomless check book It would NOT be spent on dairying . Those who have a major size operation and huge investment have few choices but to keep crawling ahead , or at least to keep crawling , even if sometimes its not ahead . I don't think all the change is for the best or that I like it , but , everything changes .

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