The Dean Foods bankruptcy has dominated the dairy headlines in November. A recent poll on DairyHerd.com found farmers think there are multiple reasons the dairy processor went out of business.
“That new processing plant that Walmart built in Fort Wayne gassed them when they lost their bread and butter,” one farmer said. “Unfortunately, it took a bunch of farms with it. Deans actually held on longer than expected.”
Another farmer post on our Facebook page said that the cooperatives are to blame. “They started all this by paying volume premiums to large farms, now they are taking money out of all farms for too much milk and getting away with it by saying they are (farmer owned)!”
Fluid milk consumption is another reason farmers think Dean Foods ran into financial trouble. “The fluid milk business has been going downhill for years. They should have made other more profitable products,” a farmer posted. “A lot of our co-ops are having the same problem. Need better management.”
Others say poor business management is the reason for the bankruptcy. “Truth is they've been poor managers for many years and other milk companies have tried to bail them out, but they just sunk in deeper.”
Check out the poll results below.