Common use of Milk Quality Payment Matrix Clause in Contracts

Milk Quality Payment Matrix. Quality Parameters Test Frequency Grade 1 Premium Grade 2 Grade 3 Grade 4 Basis of quality percentage deduction Bactoscan Per pick up <80,000 80,001 – 200,001 – >300,000 200,000 300,000 Somatic Cell Per pick up <250,000 250,001 – 400,001 – >600,000 Monthly Count - SCC 400,000 600,000 (weighted average) Thermoduric At least <2,000 2,001 – 5,001 – >10,000 Per pick up twice per 5,000 10,000 month FDA’s quality requirements for milk supplied under this agreement are set out in the milk supply policy. Grade 1 Premium is the base payment for milk. All other grades incur a percentage deduction. The following percentage deduction rates to be applied. Grade % Deduction of Milk Price Action Grade 1 Premium 0% Milk delivered in specification. Grade 2 -5.00% Corrective action required. Grade 3 -10.00% Corrective action urgent. Action Plan to be submitted to FDA’s Representative for approval. Grade 4 -20.00% Corrective action urgent. Action Plan to be submitted to FDA’s Representative for approval. Collection may be suspended. Enquire with FDA’s Representative regarding alternative supply options. Dairy Levy Levies and membership fees to be deducted under the following legislation: • Primary Industries Levies and Charges Collection Xxx 0000 • Primary Industries (Excise) Xxxxxx Xxx 0000 • Other associated legislation. Levies exclude GST. Stop Charges FDA does not have a stop charge for milk collections.

Milk Quality Payment Matrix. Quality Parameters Test Frequency Grade 1 Premium Grade 2 Grade 3 Grade 4 Basis of quality percentage deduction Bactoscan Per pick up <80,000 80,001 – 200,001 – >300,000 200,000 300,000 Somatic Cell Per pick up <250,000 250,001 – 400,001 – >600,000 Monthly Count - SCC 400,000 600,000 (weighted average) Thermoduric At least <2,000 2,001 – 5,001 – >10,000 Per pick up twice per 5,000 10,000 month FDA’s quality requirements for milk supplied under this agreement are set out in the milk supply policy. Grade 1 Premium is the base payment for milk. All other grades incur a percentage deduction. The following percentage deduction rates to be applied. Grade % Deduction of Milk Price Action Grade 1 Premium 0% Milk delivered in specification. Grade 2 -5.00% Corrective action required. Grade 3 -10.00% Corrective action urgent. Action Plan to be submitted to FDA’s Representative for approval. Grade 4 -20.00% Corrective action urgent. Action Plan to be submitted to FDA’s Representative for approval. Collection may be suspended. Enquire with FDA’s Representative regarding alternative supply options. Dairy Levy Levies and membership fees to be deducted under the following legislation: • Primary Industries Levies and Charges Collection Xxx 0000 • Primary Industries (Excise) Xxxxxx Xxx 0000 • Other associated legislation. Levies exclude GST. Stop Charges FDA does not have a stop charge for milk collections.. Schedule 7 – Special Conditions