2020-04-01 Bloomberg Markets Magazine

PHOTOGRAPH BY JAMIE CHUNG

Dairy

Downturn

ADDING A SPLASH of milk to a morning cup
of coffee was once the simplest of routines.
Until soy, almond, oat, and an array of other
plant-based milks started competing for the
cups of environmentally and health-
conscious consumers.
Dairy companies feel the pain. Two
of America’s biggest, Dean Foods Co. and
Borden Dairy Co., went bankrupt in late
2019 and early 2020. In its bankruptcy peti-
tion, Borden disclosed that its annual inter-
est cost was about $21 million, and that
was on top of quarterly debt payments
totaling $2.35 million. Dean listed debts of
more than $1 billion.
While consumption of cheese and
yogurt continues to grow, demand for milk
fell more than 25% from 2000 to 2018,
according to U.S. Department of Agriculture
data. Dairy companies have also lost sales
to retailers such as Walmart Inc., which now
produces its own milk.
To find news about the dairy industry,
run {NI DAIRY }, and for news on dis-
tressed companies, go to {NI BFWDISDUS