Economics
Milk Processors Are Going Bankrupt as Americans Ditch Dairy
- Borden and Dean file Chapter 11 within weeks of each other
- Elsie the Cow has lost ground to soy, nut and oat beverages
Gallons of milk are displayed for sale at a supermarket in Louisville, Kentucky, U.S.
Photographer: Luke Sharrett/BloombergThis article is for subscribers only.
Two of the largest U.S. milk processors have gone bust within eight weeks of each other, and one of the main causes turns out to be pretty fundamental.
“While milk remains a household item in the U.S., people are simply drinking less of it,” Dean Foods Co. said in its November bankruptcy filing. “The decline in dairy sales has occurred in conjunction with the rise of oat, nut, soy and other alternative ‘milk’ products at retailers and food service locations across the country.”