Justification for Minimum Price Clause Samples

Justification for Minimum Price. The Dairy Code requires us to include in our standard published MSA justification for our Minimum Price. The factors that we have considered when setting our Minimum Price are: (a) the composition of milk that we require in terms of milk fat and protein components and also the volume of milk that we require; (b) our cost of production; (c) the anticipated milk production forecast for the region; (d) the product mix and markets that the region supplies; (e) competition for milk across the region; (f) international dairy markets, i.e. the price of milk in international regions plus freight to Australia; (g) any volume or productivity adjustments reflecting the efficiency of collecting from large farms as opposed to the cost of collecting from a larger number of smaller farms; (h) seasonal adjustments to take into account the variation in supply and cost of milk production; and (i) farm input costs. The value and weight that we attribute to these factors to determine our Minimum Price may vary from year to year and from region to region based on market influences.