Winter Cow Deaths Hits Dean Foods — Market Talk

DJ-10:49 ET – Beyond the broader market’s selloff, Dean Foods (DF) is taking an added hit this morning amid concerns that brutal winter storms killed thousands of dairy cows in Texas.

The deaths, combined with weather which also precluded many other cows from being milked regularly, are likely to curb production in one of the country’s largest milk-producing states for weeks or months to come, says The Texas Association of Dairymen. That could raise raw-milk prices in Texas, a big DF production area, pressuring the company’s margins. Shares fall 3% to $16.63, hitting a 3-month low.