Dairy Giant Borden Files for Bankruptcy Protection

Just two months ago, Dean Foods, the largest milk company in the United States and one of Borden’s biggest competitors, also said it was seeking bankruptcy protection.

Borden’s financial troubles extend to 2017. After arranging for about $275 million in loans that year, the company, known for its “spokescow,” Elsie, suffered net income losses in each of the next two years.

The company, whose business is largely focused on the Southeast, attributes that misfortune to dairy industry trends, including shifting consumer preferences and increased competition.

Consumption of fluid milk, which accounts for the vast majority of Borden’s revenue, has been declining for decades, with per capita consumption down about 40 percent since 1975, according to Agriculture Department data. Meanwhile, dairy alternatives like milks from soy, oats, almonds and other sources have been on the rise.

More recently, raw milk prices have spiked, with the cost of milk up 27 percent since last January, according to Borden, which expects inflation to continue this year, too.

Article source: https://www.nytimes.com/2020/01/06/business/borden-milk-bankruptcy.html?emc=rss&partner=rss