NEITHER Parmalat nor A2 Milk will reduce the price they pay...

NEITHER Parmalat nor A2 Milk will reduce the price they pay dairy farmers.

Amid mid-season milk price cuts from southern Australia’s largest processors, Murray Goulburn and Fonterra, Parmalat and A2 were keen to emphasise they would not be cutting their prices.
Parmalat Australia chief executive Craig Gravin said Parmalat’s farmgate milk prices for the 2015-16 season in the southern regions were fixed, remained unchanged and were “considerably higher” than the revised prices advised by Murray Goulburn and Fonterra.

“Parmalat Australia would like to make clear to its customers, consumers and even its own farmers that these 2015-16 price changes do not impact Parmalat farmers in the affected regions,” Mr Gravin said.
A2 chief executive Peter Nathan said his company’s suppliers were protected by long-term fixed price contracts and there were no plans for prices to change.
“We have always paid a premium and will continue to do so,” Mr Nathan said.

http://www.weeklytimesnow.com.au/ag...s/news-story/dc7bb46c234fb4991ab0217953cbb894

I don't know but the fact that A2 Milk isn't willing to reduce the price they pay their farmers despite the crash in dairy prices seem like a good sign to me. If the company was really struggling to meet their sales targets and etc, I would have thought that the company wouldn't really have a choice but to reduce expenses and to lower prices to compete