Common use of Milk Price Decreases Clause in Contracts

Milk Price Decreases. Tatura will not retrospectively reduce the minimum milk price during the Term. Only in exceptional circumstances will Tatura consider price decreases on future milk prices within the Term and this would be done in accordance with the Mandatory Dairy Code. A future milk price decrease within the Term is permitted under the Mandatory Dairy Code in exceptional circumstances where an event of limited duration occurs outside of Australia that has a highly significant effect on supply, demand or costs in the dairy industry and is not caused by decisions made by Tatura or any other processor. In the event that Tatura decides to decrease future milk prices as permitted by the Mandatory Dairy Code, Tatura will give the Supplier at least 30 days prior written notice of the price decrease and include all other details required by the Mandatory Dairy Code. The Supplier will have a right to terminate this Agreement within 21 days after receiving any such notice, with effect from the day the price decrease occurs. The Supplier will also have the right to rescind any such termination before the end of those 21 days. If there is a Sharefarmer Supplier, both the Tatura Supplier and the Sharefarmer Supplier must exercise their rights under this section acting jointly.