Dean Foods, a 94-year-old milk producer, is filing for bankruptcy. The largest milk producer in the country is struggling as Americans are no longer drinking as much milk from cows.
This year has been especially difficult as company sales dropped seven percent in the first half of this year, with profits falling 14 percent. A CNN.com article says Dean Foods stock has lost 80 percent of its value.
The company manufactures some of the more recognizable milk and dairy products in the country, including Land O’ Lakes and Organic Valley.
The company blames its struggles on declining consumption in white milk. Company debt has made it difficult for Dean Foods to fund all of its workers pensions.
In a statement, the company says it’s working with the Dairy Farmers of America cooperative on a potential deal in which the cooperative would buy almost all of the company.
Sales of cow’s milk has declined for the past four years. Over the past 52 weeks, white milk sales totaled around $12 billion dollars.
Another problem Dean Foods faced is Walmart. Once one of Dean Food’s biggest customers, Walmart dropped them last year after building its own dairy plant.