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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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