MISSOURI Borden filed for chapter 11 protection earlier this week, and Dean Foods filed back in November. The dairy industry is apparently taking a hit. Reportedly around 94,000 farms have stopped producing milk since 1992, ironically though, people are consuming more milk now than ever before.
Alex Peterson is a second generation dairy farmer near Trenton Missouri and told KMZU these big corporate entities have been good for business. They have brought advertising dollars and innovation to the market.
Peterson said the dairy industry needs to keep a pulse on what people want in the market place, and continue to be innovative.
Lack of liquid milk consumption has hurt the larger producers no doubt. They also have the overhead costs, pensions, and other liabilities as major expenses.
Peterson said there will always be a demand for dairy products, producers just have to continue to be innovative and competitive. He said producers have to keep costs down and production up.
Peterson said sometimes the biggest setbacks are not created by the competition.
“I don’t intend on going anywhere,” Peterson said. “Sometimes the biggest bogeyman is ourselves, by getting in our own way, and not innovating the way we need to.”