More than 100 dairy farmers across the U.S could be without a job in a few months.

Multiple dairy farmers in East Tennessee are looking for a way to sell their milk. Dean Foods, the company that buys milk from many local farmers, sent a notice to 10 farmers in Tennessee, saying they would not buy their milk any more.   

The farmers have until the end of May to find a new company to buy the product.

Caleb Watson, a farmer in Sweetwater, said he's supplied Dean Foods with 2,000 gallons of milk a day for decades.

He said he was not expecting the letter, but is determined to find a solution, especially since the farm has been in his family for decades.

"My Great Grandpappy did this, my Papa did this, my dad did this,” said Watson, “This is something that's been handed down from generation to generation and to just stand here and let it go bye-bye my generation, I'm going to do all I can to- let's keep it going!"

There are about 40 cows on his farm, over half of them are for milking.

He was shocked when he got the letter from Dean Foods saying in part, "I regret to notify you we must cease purchasing milk from your dairy farm…. As an industry, we are producing more milk than people are drinking."

"Too much milk is what they're saying on the market!" exclaimed Watson.

According to a spokesperson for Dean Foods, the U.S dairy industry is producing 350 million more gallons of milk each year than the year before, but Americans are actually drinking less milk.

Also, retailers like Walmart are expanding their presence in the milk processing business, resulting in lower demand for milk, from- local- suppliers.

The company sent this statement to the Channel 3 newsroom:

“Unfortunately, Dean Foods has made the difficult decision to end milk procurement contracts with a number of farmers in about 90 days. We regret this decision had to be made.

These contracts will end on May 31, 2018. Affected farms were notified the week of Feb. 26. Our decision was an incredibly difficult one and a step that we worked very hard to avoid.

A little over 100 farmers were notified. The farms affected are located in Indiana, Kentucky, Pennsylvania, Ohio, New York, Tennessee, North Carolina and South Carolina. Our field representatives are serving as a conduit of additional resources to dairy farms during these challenging times. Additionally, we will provide farmers with resources to help them connect with counselors if needed. It's important to note we still buy milk that comes from thousands of farms across the country.

Many factors, including a surplus of raw milk at a time when the public already is consuming less fluid milk and companies assertively entering or expanding their presence in the milk processing business, have exacerbated an already tenuous situation in a highly competitive market.

•                      Americans drink about 3 gallons less milk per person per year just since 2010; per capita consumption is down about 11 gallons since 1975.

•                      The U.S. dairy industry is currently producing about 350 million more gallons of milk each year than the year before.

•                      The introduction of new plants at a time when there is an industry-wide surplus of fluid milk processing capacity forced us into this position.

•                      Further, competition for milk volume has increased and Dean Foods lost volume at higher levels than anticipated.

These factors have pushed Dean Foods to make this tough decision. The fluid milk market has always been competitive, but we’re in unprecedented times. These things coming together have put all of us in the situation we find ourselves today.”

Farmers were given a 90 day notice, which Watson said is not enough time.

However, he is looking for another company and a way to keep his farm running.

"May 31st, the day after that if we don't have anybody we're just pouring the milk down the drain if you want to keep milking," Watson said.

Watson said it will have a big impact on the farm but also the community.

"We don't get paid near as much as what you see it in the store,” said Watson, “So, it's going to put a hurting on us and our pocket book for sure if we don't get this straightened out."

Watson said a group of local farmers re meeting Tuesday night to work on finding a solution.