On the other side, the plant milk market is rapidly erupting

According to / “target =” _ blank “> Reported by FoodBev in the US , The American Dairy Farmers Association (DFA) has reached an agreement to acquire a” significant portion “of Dean Foods assets and businesses. In this transaction, DFA will agree to pay $ 425 million for the acquisition of 44 plants and facilities at Dean Foods.

Dean Foods, the largest dairy processor in the United States, declared bankruptcy in November 2019. Reported by FBIF Dean Foods blamed its bankruptcy on “consumers looking for vegetarian alternatives, and the traditional white milk category has accelerated its decline.” Dean Foods was founded in 1925. At its peak, there were more than 100 dairy factories. The stock price increased tenfold during the ten years from 1997 to 2007. The market value in 2007 was as high as $ 6.2 billion.

For this transaction, DFA CEO Rick Smith said that as the nation’s largest dairy processor, Dean Foods is an important customer for DFA. The acquisition is intended to protect the members of the American Dairy Farmers Association and to minimize the disruption of Dean Foods to the US dairy industry. Although the two parties have agreed on the terms of the acquisition, the transaction still requires various approvals, including those from the bankruptcy court and the US Department of Justice.

US milk consumption continues to fall, Dean Foods, the bankrupt largest dairy processor, was acquired for $ 425 million


According to the USDA, per capita consumption of liquid milk in the United States has fallen by 26% over the past two decades. The latest data is that in November 2019, the nation’s packaged liquid milk shipments were only 3.7 billion pounds, a decrease of 9.4% compared to the same period last year-the market is still shrinking.

Under the marked shrinking of consumer demand, American dairy companies are having a hard time. Before filing for bankruptcy, Dean Foods reported a net loss in seven quarters in eight quarters . In addition to Dean Foods, Borden Dairy, one of the largest and oldest dairy producers in the United States, filed for bankruptcy protection in January 2020.

updated in the restructuring interface of the company website , here is also a sense Interested readers attach a link.