One of America's oldest and largest milk producers files for bankruptcy
Source: cnn
Borden Dairy Co., one of America's oldest and largest dairy companies, on Monday became the second major milk producer to file for bankruptcy in the last two months.
Tumbling milk consumption combined with the rising price of milk have crippled the dairy industry with debt. Dean Foods, America's largest milk producer, filed for bankruptcy November 12.
Borden said it filed for bankruptcy because it cannot afford its debt load and its pension obligations. It has 3,300 employees, 22% of whom are covered by a collective bargaining agreement.
Read more: https://www.cnn.com/2020/01/06/business/borden-dairy-bankruptcy/index.html
ProudMNDemocrat
(16,789 posts)And now he wants to bomb Iran.
God help us.
OnlinePoker
(5,725 posts)The fact that we have market controls and don't allow growth hormones and antibiotics in our dairy industry seemed to rankle him.
cstanleytech
(26,319 posts)Wellstone ruled
(34,661 posts)our Dairy Industries collapse. Plus,another reason is the increase in Dairy herd sizes. This all started in the mid 1970's and even earlier when the Diary Farmers were pitted against one and another for their efforts to Organize thus controlling the fluid Milk production and the Cow herd numbers.
Now that Walmart has built their own processing Plants and signed a supply contract with the largest Dairy Farm Operation in the Midwest,the fall out is predictable. How can one guy milking 50-100 cows compete with one that milks 11k cows.
Rural_Progressive
(1,107 posts)Earl Lauer - Nixon's Sec of Ag
Wellstone ruled
(34,661 posts)other young Dairy Guy's had one on one visits a fellow from Ezra Taft Benson's office in 1959 when we were organizing what was know as the NFO(National Farmers Organization),and yes the USDA made damn sure we paid the price. Myself,I was in the process of Buying out the operation,well that Idea went south when the Banker told myself and fellow organizers that our lines of Credit where canceled.
Learned sometime later that the Food Industry as well as the Bordens Milk Company in Chicago,which was our principle Fluid Milk and Butter Market,pulled the trigger on shutting us down.
Once I and others lost our Bankers,and we were branded Commie Agitators,I as well as most of the other Guy's knew what was coming down the pike. Myself and another fellow sold out our Interest and never looked back,knowing full well that what we see today,was the future.
cstanleytech
(26,319 posts)production as that might be their only hope.
Wellstone ruled
(34,661 posts)the Organic Market is saturated. This segment is over producing and the Fluid Milk Price has not changed for almost a year. In fact,the Organic Processor's are not taking any new sources of supply. Again,to damn many cows on the Milk line. Everyone is waiting for the other Guy to cull or sell unwanted Cows.
gab13by13
(21,402 posts)who are losing their pensions will still vote for Trump.
Wellstone ruled
(34,661 posts)that are Unionized will take it in the shorts as usual. Back in the day,these would be mega strong Dems.
safeinOhio
(32,715 posts)dead and buried?
3Hotdogs
(12,406 posts)Leo, MGM Lion, was buried in Stirling, N.J. He probably lives under some condo, now.
Elsie is probably under one of the distribution warehouses around exit 8 of the turnpike.
As they say in France, "Say la vee."
getagrip_already
(14,837 posts)Management doublespeak for they intentionally loaded the company with debt, took huge bonuses and salaries, bought back stock to raise the price for executives to sell it off, then declared bankruptcy to grab the pension funds and break union contracts.
Pension obligations aren't some surprise they weren't aware of. Pensions are supposed to be funded year to year; it's like payroll. A company pension plan is never supposed to become underfunded unless it drains the pension funds for other uses.
AJT
(5,240 posts)AtheistCrusader
(33,982 posts)But I wouldn't want to be in the milk industry in any capacity. It's been declining for decades, as US Milk consumption declines. Almond, Soy, nothing. Having a corporate pension in an industry that is declining year over year for decades, is an uncomfortable position to be in financially, even before an exec takes a cut.
Response to getagrip_already (Reply #5)
IthinkThereforeIAM This message was self-deleted by its author.
ToxMarz
(2,169 posts)Yes there are problems with the dairy industry, but there are HUGE problems with corporate America. I love how they had to include the corporate version of "both sides do it" and give an equal nod to pension liabilities
https://www.forbes.com/sites/karenrobinsonjacobs/2019/02/27/heres-how-dairy-giant-dean-foods-curdled-its-own-milk/#6879d83b3ad7
cstanleytech
(26,319 posts)Javaman
(62,534 posts)LuvNewcastle
(16,856 posts)hunter
(38,326 posts)The captains of industry don't even pretend to care about the little guy anymore.
They do not go down with the sinking ship, even when they are the ones who sank it.
bucolic_frolic
(43,282 posts)They go by fat content for pricing. Heavy whipping cream 36% is about $10 a quart.
I buy Borden cheese regularly, I think it lists itself as a co-op. Dean Foods went off my radar about 5 years ago.
So that is why I can't find powdered milk? In the Recession it was cheap. Now I can't find any except little tiny packets. I do see the new large plastic sacks advertised, but none in the supers I shop. Not in WalMart.
at140
(6,110 posts)I use it in one of my recipes, but hard to find now-a-days in stores.
zeusdogmom
(998 posts)I think the quality is much better than what I can find in the grocery store. Certainly smells fresher. Packed in an airtight can. My current can has been opened going on 2 years - still smells fresh and good. I seldom reconstitute it - just use it dry in my baking. In fact I used some to make scalloped potatoes this past weekend. One of the few times I turn the powder into liquid before using.
There are also other online companies who sell a quality powered milk. I just happen to use Emergency Essentials. I think many of the grocery store powered milks smell "cooked"
at140
(6,110 posts)cstanleytech
(26,319 posts)the fact that stores have finite shelving and if there is a low demand for a product they will probably replace it with somethig that is in more demand.
The same goes for finding someone making it as if its not much in demand then finding someone that makes it can be difficult.
bucolic_frolic
(43,282 posts)where suppliers don't pay shelf space fees.
But WalMart has 15 feet of shelf space, 3 levels, for sugar, but the powdered that was beside it 3 years ago is gone.
I'm thinking grocery pickup orders have jumbled logistics. Less labor to stock and restock, so powdered goes to the back room.
But it's not in my regional chain either, and they used to stock a house brand and later Everyday Essentials (SuperValu). Soy milk in aseptic and whole milk aseptic in its place.
Not sure what's in Giant. It would probably be $14 a box.
Other discount chains none. Maybe I should check Tarjay. Never go in there because they have no depth to their offerings.
cstanleytech
(26,319 posts)bucolic_frolic
(43,282 posts)getagrip_already
(14,837 posts)Just use them to locate a seller, then check the sellers website and order directly from them. Or alternatively, if you find a manufacturer, check their website for distributors.
Use them as a research tool, then order elsewhere.
llmart
(15,552 posts)where dairy farmers were blaming the "health nuts" who are rabidly promoting alternatives such as soy milk, almond milk, rice milk, etc. and that's what's making them lose money. They are livid that they even have the nerve to use the term "milk" and want that stopped.
Welcome to capitalism, dairy farmers. The people can choose to drink whatever they want. This is a free market after all.
cstanleytech
(26,319 posts)No, what has hurt them more than anything is actually that consumers have easier access to far more options when they want something to drink.
IronLionZion
(45,528 posts)so diversity also contributes to less milk drinking. Most other dairy products are easier to digest than milk because they have bacteria in it to help break it down. People still like other dairy products but fewer people are drinking glasses of milk.
LuvNewcastle
(16,856 posts)I use it for cooking occasionally and that's about it. About the only time I drink milk is when I have some buttermilk left over. I enjoy a glass of cold buttermilk.
LiberalArkie
(15,728 posts)SharonAnn
(13,778 posts)They just want to defund the pension money into the pockets of management.
sinkingfeeling
(51,473 posts)a skyscraper in downtown Columbus, Ohio and I was assigned to them while I worked for IBM there. They put the computer room on the top floor of the building.
matt819
(10,749 posts)Both supply at least one area grocery store and one food co-op. One of the dairies is about 15 miles from me, another about 80 miles, both in my state.
I have bought raw milk previously, but the price has skyrocketed and has gone beyond my limit.
We use more milk now than in past years. I make our own yogurt and kefir, in addition to just drinking milk (spouse more than me).
Bankruptcies do not necessarily mean closing, so there's that to consider.
And if the demand for milk is going down, then the reduction of supply shouldn't have much impact on the pricing. Or does it?
What impact could these developments have on local milk producers. As farmers, they are dealing with the issues that all farmers are dealing with - climate change, debt, employees, etc. But their size would mean, I guess, that these concerns are not in the same league as the industrial producers. Could this all be good for local producers?
Also, what are the trends in other dairy products? Yogurt, kefir, cheese, various powdered milk products?
Interesting developments and an interesting issue.
Kali
(55,019 posts)getagrip_already
(14,837 posts)Because it was smack dab in the middle of dairy country. They, and the industry in general, use a LOT of milk products.
Jopin Klobe
(779 posts)... ah ...
dalton99a
(81,570 posts)greatauntoftriplets
(175,749 posts)Sorry to see it in financial trouble.
getagrip_already
(14,837 posts)We had one for years.
Grins
(7,228 posts)And it's not just Borden's!
IronLionZion
(45,528 posts)Oh yes, I'm the millennial that's killing milk. I switched to almond milk years ago. Also cut down on cheese and ice cream for health reasons. Yogurt is the main dairy product I still consume regularly.
Mosby
(16,350 posts)A lot of people don't like this, because the truth is that fruit juice is basically crap for everyone. Diabetes in a bottle.
IronLionZion
(45,528 posts)but switched to soy or almond milk a few years back. I rarely drink fruit juice. I have a juicer for vegetables and went through a juicing phase a few years ago but got tired of cleaning out the juicer.
IcyPeas
(21,904 posts)Maeve
(42,288 posts)JustABozoOnThisBus
(23,364 posts)Could be a ploy to dump pension obligations, wipe out the stock, then continue on as a "new" Bordens, with new stock, enriched executives, and impoverished pensioners.
llmart
(15,552 posts)I believe this style of "bankruptcy" began in the Reagan years.
Boxerfan
(2,533 posts)The same relatives who helped steal millions of dollars in inheritance from my siblings & I.
My Grandfather founded a ice cream company-he ended up selling to Borden's just before the depression. He made a killing on Texas real estate with his windfall from Borden's. Last I heard my cousins family still had stock in the firm worth millions.
Never trust rich people-especially relatives. We were all minors at the time & I know damn well they know what happened. Now they won't even return letters or calls and act like since we don't have $ we aren't worth talking to.
Fuck 'em.
Upward
(115 posts)Educated consumers wanted nothing to do with rBST, but shortsighted dairy producers lapped it right up.
So we moved to organic milk; even though it was more costly, initially the price wasn't too bad. I'd buy it at my local organic grocery for about $3/ half gallon.
When chain grocery stores caught on they started stocking it as inflated prices. Initially consumers were all 'f that, I'll buy from my mom and pop store.'
But then Wild Oats and Whole Foods started buying all those mom and pop stores, and jacking up the price. This allowed the chain (conventional) grocers to do the same.
When I go to a store now, whether it's a Publix or a Whole Foods, it's between $5-6 per half-gallon. Wal-Mart still sells Stony Field for $4, a comparative bargain.
When Almond Milk came on board, we could get GMO free, organic for $3/half-gallon again, so what do you think I'm going to buy?
Dairy fucked itself itself on this one. I've always been a big fan of Borden products, so it's a shame to see. Hopefully, they will find a way to continue making dairy products for people who need the real thing for cooking.
DeminPennswoods
(15,290 posts)they'll reorganize and be back in business.