The dairy industry is struggling to keep up with demand.
But one company says it is ready to fight to get back to profitability.
The Oak Farms Dairy Company says it will buy its competitor, Kix, for $4.5 billion.
It will buy the Swedish milk maker’s US operations for $1.2 billion.
The announcement comes after dairy prices plunged this year as consumers were forced to switch from products like milk powder and other cheese to butter and cream, the world’s leading dairy products.
The cost of milk has also fallen dramatically, and many consumers have stopped buying milk powder.
The price of a bottle of milk at the U.S. retail market dropped nearly 30% from its peak in late 2015.
Kix was founded in 1985 in Sweden and is one of the largest producers of yogurt and cheeses in the world.
It sells about 2 billion litres of yogurt annually.
The deal is expected to close in the fourth quarter.