Dean Foods, America’s biggest milk processor, filed for bankruptcy on Tuesday stating a decades-long drop-off in U.S. milk consumption is to blame on changing trends and a growing variety of alternatives.
The company said it may sell itself to the Dairy Farmers of America, a marketing cooperative owned by thousands of farmers.
“Despite our best efforts to make our business more agile and cost-efficient, we continue to be impacted by a challenging operating environment marked by continuing declines in consumer milk consumption,” CEO Eric Berigause said in a statement.
Since 1975, the amount of milk consumed per capita in the U.S. has tumbled more than 40%. Americans consumed around 24 gallons per year in 1996, according to government data. That dropped to 17 gallons in 2018.
