If you like to have dairy products in your home, you may be shocked to find out that a major U.S. dairy provider, Borden, has sought bankruptcy protection. A Jan. 6 report states that the number of milk sales in America has dropped, and that has resulted in a loss of profits for Borden.
What has caused this major loss of profits? It all comes down to the alternatives that are now being offered. With alternatives such as soy, almond, cashew and other kinds of milk, it’s easier for people to forgo dairy and use plant-based alternatives.
The consumption habits of people in America has been shifting, which has led to the company filing for bankruptcy protection. Borden currently produces close to 500 million gallons of milk for consumers each year, employing 3,300 people and running 12 locations across the United States.
Since 1975, the amount of milk being sold has been decreasing. In fact, the amount of milk being used by Americans dropped by 40% between 1975 and 2018.
Borden isn’t the only milk company to have to turn to bankruptcy. Dean Foods, the largest milk producer in America, also had to file for bankruptcy protection in 2019. As consumers continue to change their habits, these companies will need to restructure or be at risk of closing their doors.
When markets change, companies may need to take time to restructure. If your company is feeling a pinch from the economy or market, you may also want to look into restructuring your business through Chapter 11 bankruptcy and do what it takes to stay open.