Rising raw food prices—from milk to almonds—caused "high-profile blowups" among several big food stocks, CNBC's Jim Cramer said Tuesday.
Cramer singled out one company, Dean Foods, as a stock that investors should avoid. He called the stock "radioactive," and investors seemed to heed his advice—the shares dropped more than 10 percent in early trading Tuesday.
"Jeez, it's a milk company," Cramer said on "Squawk on the Street." "People are going to think it's radioactive milk. No. What I mean is that the raw costs are going up here."
The stock joins ConAgra Foods, Annie's and WhiteWave Foods as companies suffering from the same kind of pricing problems, Cramer said. Dean Foods, the largest dairy processor in the U.S., warned on Tuesday that it could post a loss in the first quarter because of rising milk costs.
Dean Foods said that milk prices rose sooner than expected in 2014 because of growing global demand.