Apparently all is well in the processing section of dairy.
Organic net revenues declined 10.3 percent as a 6.8 percentage point gain in volume/mix was more than offset by a 17.1 percentage point reduction from lower price levels. This price decline was in response to significantly lower dairy costs, consistent with the company's adaptive pricing model.
Somehow "adaptive pricing model" does not seem accidental.
Nov. 9 (Bloomberg) -- Parmalat SpA, Italy’s biggest dairy- foods company, rose to the highest level in 18 months in Milan trading after earnings increased more than analysts estimated because of lower raw-milk costs.
ReplyDeleteWhy buy the cow when you're getting the milk for free?
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