"It's really the unofficial symbol of McMinn County, and it's one we're proud of." - McMinn County Mayor John Gentry about Mayfield Dairy
Though the parent company of Mayfield Dairy has filed for Chapter 11 bankruptcy protection, the facility in Athens, Tennessee, will keep turning out those iconic yellow jugs of milk and cartons of ice cream, said officials with Dean Foods.
"Mayfield Dairy is operating as normal and is continuing to provide customers with an uninterrupted supply of high quality products," said Anne Divjak, vice president of government relations and external communications for Dean Foods.
Mayfield Dairy employs about 330 people and has been part of the fabric of McMinn County for generations, said McMinn County Mayor John Gentry.
"It's really the unofficial symbol of McMinn County, and it's one we're proud of," Gentry said. "There's probably not a family in McMinn County that doesn't have a friend or relative that works or has worked there."
Texas-based Dean Foods, which bought Mayfield Dairy in 1990, has struggled with declining milk consumption and rising costs, among other market pressures. Milk consumption per capita has fallen 41% since 1975, from 247 pounds a year to 146 pounds, according to data from the USDA.
"It's marketplace struggle we're dealing with," Gentry said. "It's nothing that anyone's done wrong."
Mayfield Dairy timeline
1910: T.B. Mayfield Jr. purchases land and 45 Jersey cows and begins selling milk to McMinn County residents.1922: A new milk plant is completed, and Mayfield makes pasteurized milk available for the first time in McMinn County.1950: Mayfield’s new production facility opens in Athens, Tennessee.1983: Mayfield introduces its famous yellow jug.1990: Mayfield becomes part of Dean Foods Company.Source: mayfielddairy.com
Dean Foods had scheduled an earnings call for Tuesday morning. Instead, officials announced the bankruptcy filing. The company's stock has lost 80% of its value this year. Eric Beringause, president and CEO of Dean Foods, said the bankruptcy is the right path forward for the company.
"The actions we're announcing today are designed to enable us to continue serving our customers and operating as normal as we work toward the sale of our business," he said.
Dean Foods is in talks with Dairy Farmers of America about a potential sale of the company's assets.
"As Dean Foods is DFA's largest customer, our focus is ensuring we have secure markets for our members' milk," said Monica Massey, executive vice president and chief of staff for Dairy Farmers of America.
In McMinn County, the hope is that the bankruptcy reorganization and potential sale might be good news in the long run for the dairy that began when T.B. Mayfield Jr. purchased 45 Jersey cows in 1910.
"That's what we would hope for, that by this coming through Chapter 11, it would actually be able to rally around some of the more profitable plants," Gentry said. "We understand the Athens location does very well, from what we know."
Athens City Manager C. Seth Sumner said the news about the bankruptcy wasn't particularly surprising to many people, and that, "hopefully, in this restructuring by Dean, the Mayfield brand and legacy will remain intact."
"They're still doing tours and still making great ice cream," Sumner said. "Nobody should be jumping to any conclusions about the future of the Mayfield Dairy."
Contact Mary Fortune at mfortune@timesfreepress.com or 423-757-6653. Follow her on Twitter at @maryfortune.