One of the country’s largest milk producers, Borden Dairy, filed for bankruptcy on January 6. It’s the second such bankruptcy from one of the country’s largest milk producers in two months. Dean Foods, the country’s largest dairy, filed for bankruptcy in November.
Reduced demand and rising prices have continued to wreak havoc on the industry. 2,700 dairy farms went out of business in 2019, which means higher margins for existing producers. The lower price for milk to meet lower demand harms the remaining businesses.The company said that its debt is too high and has significant pension obligations. The company is currently working with lenders on a plan but says it plans to continue business during the bankruptcy process.
CEO Tony Sarsam said in a statement, “Despite our numerous achievements during the past 18 months, the company continues to be impacted by the rising cost of raw milk and market challenges facing the dairy industry.” He continued, “Ultimately, we determined that the best way to protect the Company, for the benefit of all stakeholders, is to reorganize through this court-supervised process. This reorganization will strengthen our position for future prosperity. ”
Milk consumption has dropped 40% since 1975 and the rise of non-dairy alternatives has been gaining momentum each year. Sales of plant-based and nut milks increased 9% in 2018.The market for alternative dairy is expected to continue to grow, up to 12.4% in the next few years and Euromonitor reports the current market for alternative milks globally will reach over $18 billion for 2019.
The dairy industry has also been exposed for their cruel and abusive practices. In 2019, dairy giant Fair Oaks Farm were exposed but continue operating. Sign this petition if you’d like to see them shut down too!
Dairy consumption has been linked to many health problems, including acne, hormonal imbalance, cancer, prostate cancer and has many side effects. It is also easy to make plant-based milks at home, check out this Simple Vanilla Oat Milk and How to Make Almond Milk. For those concerned about calcium intake, make sure you check out these calcium supplements, We also highly recommend downloading the Food Monster App — with over 15,000 delicious recipes it is the largest dairy-free, meatless, vegan, plant-based and allergy-friendly recipe resource to help you get healthy!
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