The US Milk Industry has been struggling.
Today’s blog is by Margaret Stewart, Director of HR and Administration at SafeSourcing Inc.
The US milk industry has been struggling and two large milk companies have recently filed for bankruptcy. Borden Dairy Company recently filed bankruptcy and Dean Foods filed for bankruptcy in November 2019. Both companies have suffered losses and lower milk consumption from as far back as 2015 is believed to be the cause.
Many believe the decline in milk consumption comes from a better understanding of nutrition and the amount of other drinks available today that provide nutrients. Milk was once believed to be the healthiest drink and people were encouraged to drink several glasses every day. Now, people can get the same calcium and vitamin D from juices and many other drinks, like juice, protein shakes, and milk alternatives. In addition, many people turned away from milk due to the added growth hormones given to cows to increase their milk production. While the hormones are not used much anymore, it still led to many people becoming vegetarian or vegan, furthering the decline in milk consumption.
With these two recent filings from Borden and Dean, we can expect the cost of milk to rise as supplies go down. While other dairy products are still doing well, like yogurt and cheese, we may even see those prices rise, too. The dairy industry as a whole, though, will likely struggle unless milk consumption rises.
For more information on how SafeSourcing can help your procurement efforts, or on our Risk Free trial program, please contact a SafeSourcing Customer Service Representative. We have an entire team ready to assist you today.