The Borden Dairy Company becomes the second large producer in recent months to file for Chapter 11 bankruptcy protection. Blame, among several factors, more Americans drinking dairy alternatives made with soy, rice or nuts, industry experts said.
Founded in 1857, the Texas company known for its mascot “Elsie the Cow” cited the rising cost of raw milk and market challenges facing the dairy industry as making Borden’s level of debt unsustainable, according to a company statement.
screenshot/bordendairy.com
America’s consumption of cow milk has lagged in recent years amid a surge in popularity of nut-based milks and as retailers offer their own low-cost house brands to bring in more shoppers. Making business even more difficult is the nation’s dwindling supply of dairy farmers. That has dented supply and pushed raw-milk costs up nearly 30% over the past year, court papers filed in the case noted.
Dean Foods. the country’s biggest milk producer, declared bankruptcy in November and entered into advanced talks with Dairy Farmers of America about a possible sale. Dean’s losses also escalated after its No. 1 customer, Walmart, started producing its own milk.
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