Venerable dairy giant Borden files for bankruptcy

Borden Dairy Co., one of the oldest and largest milk producers in the United States, filed for Chapter 11 bankruptcy on Monday, citing a dropping demand for cow's milk, rising costs for raw milk, and its own debt and pension obligations. The nation's largest milk producer, Dean Foods, filed for bankruptcy protection in November. Both companies are based in Dallas.

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Borden traces its roots back to 1857, when Gail Borden developed the first successful method of making commercially viable condensed milk and incorporated in upstate New York a few years later to churn out canned milk for the Union Army, CNN reports. The company changed its name to Borden Dairy Co. in 1919 and introduced its iconic mascot, Elsie the Cow, in 1936. Borden said it plans to continue operations during the bankruptcy process but did not say if its endgame is liquidation or continuing as a dairy business. The company employs about 3,300 people.

In its filing, Borden noted that 2,700 U.S. family dairy farms went out of business last year, and 94,000 have ceased milk production since 1992.

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