Dairy Farmers of America remains in the running to buy the nation's largest milk processor, but it no longer has an inside track.
Opponents fear a milk monopoly The New Food Economy by Jessica Fu. A Texas bankruptcy judge will decide if Dairy Farmers of America will be allowed to set the baseline for bidding in an auction of Dean Foods Co. assets. KANSAS CITY, Kan. — Dairy Farmers of America (DFA) has reached an agreement with Dean Foods to acquire a substantial portion of Dean’s assets and business.
The court is expected to hold a hearing on the sale of Dean Foods assets on April 3.
Dean Foods is proud to introduce new DairyPure ... 31 March, 2020. Dean Foods bankrupcy update for March 30, 2020.
"A sale to DFA would create a monopoly on milk prices which would not only be bad for the consumer but for the dairy farmers that produce that milk," she said.
"The only question is where that value will be directed...DFA sees future profitability, which is why it wants Dean's assets.
Share on Facebook "The judge is determined to rush this sale through when the process really needs to slow down," she said.
America’s biggest dairy co-op may buy Dean Foods. Bids may be submitted in the form of an asset purchase or a plan of reorganization. Delve deeper into the nuances of organic with these videos.Dean Foods, the largest domestic milk producer, announced on November 12 that it was filing for bankruptcy.We believe that when consumers invest in independent farms, rather than in corporate consolidation, we are provided with the best foods and the highest quality care for the planet.Sign up for The Cornucopia Institute’s eNews and action alerts to stay informed about organic food and farm issues.“There is a pattern of consolidation in the dairy industry that rarely, if ever, benefits the farmers themselves,” continued Burcham, “Farmers that provide milk to Dean Foods will undoubtedly be affected by their bankruptcy filing and any future sale of Dean’s assets.”One of America’s biggest dairy companies, Dean Foods, filed for Chapter 11 bankruptcy on Tuesday, leaving the future uncertain for its milk suppliers, some of whom don’t know whether they can stay in business if their major buyer goes belly up.The Cornucopia Institute encourages consumers to engage with local, organic farmers whenever possible. One of America’s biggest dairy companies, Dean Foods, filed for Chapter 11 bankruptcy on Tuesday, leaving the future uncertain for its milk suppliers, some of whom don’t know whether they can stay in business if their major buyer goes belly up. "While Dean shareholder Susan Poole says she is glad DFA is no longer the stalking horse bidder (which would set a minimum for the process), she's afraid potential bidders won't have enough financial information nor sufficient time to cast a bid.Poole says many stakeholders are opposed to DFA purchasing Dean Foods for many reasons.In 2007, southeastern dairy producers filed a class action lawsuit against Dean Foods and Dairy Farmers of America along with other companies for violating antitrust laws, according to court documents.
"However, DFA wants to buy their assets quickly and cheaply, which doesn't give proper value to all the stakeholders: creditors, bondholders or shareholders. Kirchoff noted the cooperative had been aware that Dean was struggling, and he stated the bankruptcy will have “no impact on the venture’s customers or vendors.” This sounds like good news for the family-scale dairies that belong to the Organic Valley co-op.The news is less good for the remaining Dean Foods brand farmers.Get an unfiltered view from the fields, whether it’s an authentic organic farm or an industrial imposter. Dean Foods is owned by and serves more than 14,500 dairy farmer-members representing more than 8,500 dairy farms in 48 states.