Common use of Payment Systems Clause in Contracts

Payment Systems. Subject to clause 2.3A, the Supplier has a choice to be paid under one of two payment systems: • MPS 1 (Milk Payment System 1): MPS 1 provides for stronger out of peak payments to support those suppliers with management systems which result in flatter supply patterns. • MPS 2 (Milk Payment System 2): MPS 2 provides for relatively high spring pricing and assists suppliers with early season cash flow. If there is a Sharefarmer Supplier under this Agreement, the Bega Supplier and the Sharefarmer Supplier must both be paid under the same payment system being either MPS 1 or MPS 2. If there is more than one Farm listed in Item 1 of the Details, all Farms must be paid under the same payment system as well. If neither payment system is ticked in the Details or if different payment systems are ticked, and the Supplier has previously supplied Bega, Bega will use the payment system selected by the Bega Supplier during the 2020/21 Financial Year (Applicable Pay Rate).