Source: USA Today
Dairy Farmers of America agreed to buy a “substantial” part of Dean Foods, the largest U.S. milk producer, for $425 million. As part of the deal, Dairy Farmers of America, an agricultural cooperative that represents roughly 14,000 dairy producers, would acquire 44 of Dean’s plants. Dallas-based Dean Foods filed for bankruptcy protection in November.
Dean Foods, which supplies supermarkets and schools, has struggled as the U.S. dairy industry grapples with declining milk consumption. The company’s efforts to close plants and cut costs haven’t offset declining sales as more consumers turn to plant-based milk alternatives such as soy.