Dean Foods To Close Down Robinson Dairy
News: US-based Dean Foods has confirmed plans to close down its local Robinson Dairy in November 2013, reports Food Business Review. The company said it is shifting production from Robinson Dairy to Meadow Gold Dairy plant in Englewood, Colorado. Dean Foods said the transition involves the transfer of 96 jobs to the Englewood facility while some will be transferred to a Meadow Gold facility in Greeley. The company said the move, which is aimed at improving its supply chain capability, will result in the loss of about 40 jobs.
BMI View: The US dairy industry is characterised by the strong presence of family-owned farms that are usually members of producer cooperatives. International dairy trade is of only limited importance for the US, with the dairy industry being relatively isolated. The government regulates both sanitary and market aspects of the sector. Milk production has increased over the review period despite a decline in the number of dairy cows, owing to productivity improvements. The industry has become increasingly consolidated, with the overall number of dairy operations declining and the average size of remaining operations increasing.