Dean Foods (NYSE:DF) is the largest processor and distributor of milk and other dairy products in the U.S., with products sold under more than 50 familiar local and regional brands and a wide array of private labels.^[1] As such, the company is highly dependent on milk prices, which have nearly doubled since 2002, when the Cooperatives Working Together (CWT) dairy farm group put initiatives in place to control dairy prices. Prior to 2002, the price of raw milk had been regulated by the government at around $9.90 per hundred pounds. In 2008, however, the USDA predicts raw milk will be between $18 and $19 per CWT. As a result, Dean Foods' gross and net margins may recede.

One trend that has helped boost the company's fortunes in the face of increased dairy prices has been its WhiteWave Foods group, which focuses on organic dairy and soy products. With the Natural & Organic Foods Consumption on the rise, this segment has been performing strongly for the company.

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