Farmers Agree There Are Many Reasons Dean Foods Filed Bankruptcy

A recent poll on DairyHerd.com found farmers think there are multiple reasons the dairy processor went out of business.  ( Gaia Squarci, Bloomberg )

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. 

RELATED CONTENT:

Signal to Noise: Dean Foods Bankruptcy to Alter Fluid Milk Control

Bankruptcy Truth: Why Dean Foods’ Business Model Was Not Sustainable

Dean Foods Bondholders Just Say No to Merger With Dairy Co-op

Comments
Submitted by Dave on Sat, 11/30/2019 - 10:12

Hmmm.... Maybe having a hedge fund buy the company, take fat paychecks, and saddle Dean with big debt might be real reason.

Submitted by Chuckie on Mon, 12/02/2019 - 09:16

You forgot the biggest reason of all: GPS or greedy pig syndrome. If you can't compete,buy out the competition until you can't afford it anymore. When you think you have the market cornered someone (Wal Mart) gets a better idea. In this area store brand Wal Mart milk bottled by Dean was half price of Dean 's. I also understand that most of their debt is unfunded pension money.

Submitted by Chuckie on Mon, 12/02/2019 - 09:17

You forgot the biggest reason of all: GPS or greedy pig syndrome. If you can't compete,buy out the competition until you can't afford it anymore. When you think you have the market cornered someone (Wal Mart) gets a better idea. In this area store brand Wal Mart milk bottled by Dean was half price of Dean 's. I also understand that most of their debt is unfunded pension money.