Batesville, In. — Officials from Dean Foods have notified at least 27 Indiana dairy farmers their milk contracts will be canceled on May 31.
“Unfortunately, Dean Foods has made the difficult decision to end milk procurement contracts with a number of farmers in about 90 days,” says Reace Smith director of corporate communications at Dean Foods. “We regret this decision had to be made.”
Indiana State Department of Agriculture Bruce Kettler says they are looking at other options for farmers to sell their dairy products.
Dean Foods has supplied milk to Walmart under the Great Value name for decades. The retail giant recently unveiled their own milk bottling plant in Fort Wayne, Indiana and is expected to be fully operational by the end of May, roughly the time current milk contracts with Dean Foods will be terminated.
But, Dean Foods representative hint that additional contracts could be canceled later this year. “We expect to consolidate our supply chain by a meaningful amount over the next 18 to 24 months while also making sure that we deliver the same great quality, value and service that our customers have come to expect from us,” Ralph P. Scozzafava, chief executive officer at Dean Foods said. “For this important reason, we’ll implement our supply chain changes in phases with targeted completion in 2019.”
Comments from local producers have not yet been received.
