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Milk Crisis to Close Dean Foods Plant in Kentucky, Cost Jobs

Nicole Erwin | Ohio Valley ReSource

The milk crisis at Dean Foods is forcing dairy farmers out of business and will eliminate more than 60 jobs at a Kentucky plant.

The Courier Journal reports union officials have confirmed the Louisville plant is one of seven closing after Dean was cut loose from Walmart. Walmart will no longer buy Dean's milk for its Great Value brand.

In May, employees were notified of the closure this fall and 19 farmers were told contracts with Dean expired in June.

The newspaper reports waves of change in the milk industry have been building for years. Exports are leveling from a post-recession surge and alternatives like almond milk are gaining ground. But it says Walmart's decision to open its own super-sized dairy processing facility in Indiana has triggered a tsunami-sized effect.

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