Got milk? Consumers may see their dairy options shrinking as two of the biggest players in America’s milk industry declare bankruptcy within the last two months.
Borden’s Chapter 11 declaration follows that of Dean Foods, America’s largest milk producer. After over 160 in business, Borden plans to reorganize, whereas Dean Foods plans to sell its assets.
Video Spotlight: Dairy giant Borden files for bankruptcy
This post is based on the CNN article, One of America’s oldest and largest milk producers files for bankruptcy, by Chris Isidore, January 6, 2020; the CBS News article, Borden is latest big milk producer to go bust, by Kate Gibson, January 6, 2020; and the YouTube video, Dairy giant Borden files for bankruptcy, by Newsy, January 6, 2020. Image source: Shutterstock/Andrey_Popov.
1. What factors caused Borden’s bankruptcy?
Guidance: Changing consumer preferences, part of the socio-cultural environment, have played a major role in Borden’s bankruptcy. Dairy milk consumption has been on a decreasing trend, dropping six percent in the last five years or so, as more Americans opt for nut-based or soy-based milk. In addition, 2019 saw 2,700 family dairies close, following a trend of Continue reading