Dairy Farmers of America, the largest U.S. dairy cooperative has struck a $425 million deal to buy dozens of Dean Foods plants. Earlier Dean Foods has filed for bankruptcy. Minnesota Milk Producers Association Executive Director Lucas Sjostrom says there are both positives and negatives with the purchase.
One of the main reasons Dean Foods filed for bankruptcy was due to a drop in fluid milk prices and demand. Sjostrom thinks DFA will do their best to keep fluid milk prices up which should benefit dairy producers.
Sjostrom says federal regulators have yet to approve the purchase agreement.
Dairy Farmers of America markets nearly one third of milk in the United States and operates its own milk processing plants and dairy facilities.
