I dont see how the DOJ can approve DFA buying Dean Foods now that there is an alternative plan that wont result in a monopoly in the dairy industry. Independent farmers are very worried that if DFA buys Dean Foods, their farms will be have to either close or join DFA.
DFA+Dean Foods also dont have the best record. They have been sued so many times for price fixing.
"I'm a DFA dairy farmer and I think everyone in the dairy industry knows DFA and Dean Foods are corrupted as hell...I would leave DFA if I could but my farm will go under immediately because DFA has too much influence in my region"
I hope you spent the time to talk to the DOJ about this before posting this here. I wish you luck in the future.
I'm a DFA dairy farmer and I think everyone in the dairy industry knows DFA and Dean Foods are corrupted as hell...I would leave DFA if I could but my farm will go under immediately because DFA has too much influence in my region
A merger with Bordens is not going to happen, but you're right in that it wouldn't be that much different then the acquisitions by DFA as far as anti-trust issues go. The DFA and PF deals are as good as done.
Dean's merging with Bordens would result in massive plant shutdowns and reduced competition.
Bunch of pu–ycats dont want to hear the truth ive been blacklisted
I don't know if anyone's paying attention to the dockets, but today Deans told the court that a deal with the DOJ and DFA and Prairie Farms was imminent. THat DFA would divest of a plant in WISC, ILL and MASS. They claimed that they expect that deal to be confirmed by May 1.
Also, both Deans and DFA shot holes the in the "merger" claim. It's too little, too late and no guarantee they even have the loan guarantees to do it. Dean's has claimed they will run out of money if the deal has to wait any longer, which is what most of us have heard all along.
There aren't many fluid dairy manufacturers left in the U.S. and unless someone not currently in the fluid dairy business decides to give fluid dairy a try almost any one of those fluid dairy manufacturers buying another is going to result in a monopoly in some areas. But no one new is going to step up- just not enough money to be made in fluid milk alone. So options are overlook the anti-trust issues and let a company try to make it or don't allow those mergers/acquisitions and end up with a monopoly anyway when the most financially troubled businesses go under.
Long term I see the U.S. doing what Canada and Europe have done- extremely large modern dairy processing plants that produce UHT milk that can ship all over the country. Tastes like c-ap, but has a long self life and people buy it because that's all they can get.
DOJ has NOT approved the sale to DFA. That was just WSJ quoting unnamed sources (my guess is probably someone in DFA trying to push DOJ to approve).
Also, divesting certain assets just wouldnt work because without the brands and customer contracts, those plants will just be sold as real estate and not as milk processors. So at the end, DFA will still be a monopoly in those regions.
DFA has been forced to divest some of their assets to satisfy the terms of the sale. DOJ has already approved