(CNN & WIAT) – One of America’s oldest and largest dairy companies became the second major milk producer to file for bankruptcy in the last two months.
Borden Dairy Company said it cannot afford its debt load and its pension obligations.
The company said it also has been hurt by a drop in overall us milk consumption since 2015.
Borden noted that more than 2700 family dairy farms went out of business last year, and 94,000 have stopped producing milk since 1992.
Dean Foods, America’s largest milk producer, filed for bankruptcy on November 12.
Borden has 3300 employees. It is unclear whether the company intends to stay in business long term or liquidate.
According to its bankruptcy filing, from January 2019 through December 7, Borden reported a net loss of $42.4 million.
The company’s history dates back to before the U.S. civil war when its founder, Gail Borden, developed the first successful commercial method of condensing milk in 1856.