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American biggest milk producer files for bankruptcy
15.11.2019 22:18 "Agro Perspectiva" (Kyiv) —
As of now, Dean Foods, the US largest milk producer, is filing for bankruptcy,
CNN reports.
As to the report, the 94-year-old company has struggled within recent years as Americans are drinking less cow milk. 2019 has been particularly brutal: the company sales tumbled 7% in the first half of the year, and profit fell 14%. Dean Foods (DF) stock has lost 80% this year.
As to the report, the company, which produces some of the US most recognizable milk and dairy products, including TruMoo, Dairy Pure and Land O’ Lakes milks, has blamed its struggles on the «accelerated decline within the conventional white milk category.»
It is to be admitted, once a staple of the American refrigerator, milk has slowly fallen out of favor with domestic consumers as they seek less-sugary or plant-based alternatives.
Actually, the global market for milk alternatives is expected to reach US$18 milliard this year, up 3.5% from 2018; that is still a fraction of the traditional milk market which will decline just under US$120 millard globally this year.
It is to be admitted, the cow milk sales have been declining for the past four years. Sales for the past 52 weeks, ending on Oct 26, was around US$12 milliard. All types of cow’s milk, such as 1%, 2%, skim and fat-free milk sales have all declined.
In contrast, and while still much smaller, this year global sales of oat milk have jumped to US$53 million, up 636% against last year.
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