Tuesday, October 02, 2007

Largest US Dairy Milk Company in Trouble

US: Dean Foods problems mount; 700 jobs could go : Food News & Comment

The Dairy industry really is in a mess - despite removing some of the fat (skimmed milk) adding in vitamins and flavour, using anti biotics to curb mastitis, removing the lactose to make it more digestible (lactolite)and adding in Omega 3 from fish oil in an effort to make it more similar to the nutrients in human breast milk and massive government subsidies the dairy industry is still struggling to be sustainable....

Dean Foods, the largest milk processor in the US, has suffered as dairy costs continue to rise and the company blamed "unprecedented" costs and a glut of organic milk in the US.

"Rapidly increasing and record high dairy commodity costs have created a very challenging operating environment and 2007 results have been well short of our expectations," admitted Gregg Engles, chairman and CEO. "The third quarter has been particularly challenging as dairy commodity costs have risen sharply, hitting all time highs."

Engles added: "This is by far the most difficult operating environment in the history of the company."

In a bid to reduce costs, Dean Foods said it would cut up to 700 jobs from its workforce. "It is a tough decision but it is a necessary action to improve our competitive position," Engles said.

No comments: