TAMPA (CNN) – One of America’s oldest and largest dairy companies is now the second major milk producer to file for bankruptcy in recent months.
Borden Dairy Co. said it cannot afford its debt load and its pension obligations.
The 163-year-old business said it has also been hurt by the rising cost of milk and a reduction in overall milk consumption in the United States.
The company noted that more than 2,700 family dairy farms went out of business in 2019 and 94,000have stopped producing milk since 1992.
Dean Foods, America’s largest milk producer, filed for bankruptcy last November.
According to its bankruptcy filing, from January 2019 through Dec. 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.