Dean Foods, Dairy Farms of America deal called off


After objections from farmers and concerns about competition surrounding the deal, DFA will no longer be the stalking horse for the sale of Dean Foods.

The two organizations have been in talks for a sale for months after Dean Foods filed for bankruptcy four months ago.

Dean Foods has 57 manufacturing facilities making them the largest milk processor in the country.

But there were objections to DFA as the lead bidder. An amicus curiae brief filed in the Houston court March 11 on behalf of farmer advocacy organizations, dairy farmers, members of the DFA and shareholders of Dean Foods said these groups vehemently opposed the deal.

“The Court may not be aware; DFA murdered Dean. Granted Dean should not have been hanging around with mobsters,” the brief said. “This is in no way hyperbolic. The danger to America’s Dairy Industry, individual dairy farmers and ultimately the consumers cannot be overstated. DFA is the Godfather of America’s National Milk Producers Federation’s milk cartel.”

Although dropping DFA as the stalking horse will remove bid protections that favored the dairy cooperative, that does not mean DFA won’t still bid on the assets.