Pricing Mechanisms. Buyer will provide the Seller with a flexible and comprehensive pricing and payment facility pursuant to the following terms and conditions:
Pricing Mechanisms. As part of Canada’s system, all raw milk produced and marketed in Canada must be sold by producers to the provincial Milk Marketing Boards, which in turn sell this raw milk as the primary raw material input to processors.22 Prices paid by processors and received by producers vary depending on how the milk is ultimately used (the milk’s end-use).
Pricing Mechanisms. The following pricing mechanisms ("Pricing Mechanisms") shall apply to determine the Price of the Products.
Pricing Mechanisms. The following pricing mechanisms (“Pricing Mechanisms”) shall apply to determine the Price of the Products. [***] Confidential treatment requested. [***] Confidential treatment requested.
Pricing Mechanisms. The Xxxxxxxxx Act requires that the final purchase price under the terms of all grape purchase agreements be calculable for reporting purposes by January 10 of the year following the harvest, including any bonuses and allowances. Violation of the Xxxxxxxxx Act renders the contract "illegal and unenforceable." The thrust of the Xxxxxxxxx Act is that grape prices be fixed by January 10 following the harvest, even if payment is delayed. Pricing mechanisms under grape purchase agreements need to assure that the price is capable of being determined in compliance with the Xxxxxxxxx Act. A fixed price per ton pricing mechanism, most typically used in short-term "spot" contracts, complies with the Xxxxxxxxx Act. If a fixed price per ton is used in longer term agreements, the fixed price may be tied to indexes, such as the Consumer Price Index or to percentage shifts in the Final Grape Crush Report published by the California Department of Food and Agricultural for the particular varietal and geographical area. In evergreen contracts, it is common for pricing per ton to be determined by reference to the price reported in the Final Grape Crush Report for the year prior to the harvest. Those formulas often refer to the weighted average price as reported in the Final Grape Crush Report, or to higher percentile levels, or the weighted average level plus a stated percentage, depending upon the quality of the grape, the term of the contract and the outcome of other negotiated elements in the contract. Price adjustments can be capped to prevent a decrease in per ton pricing under any circumstances or to limit any increase or decrease to a certain maximum percent change. In addition, the grower and purchaser may consider a fixed percentage increase for the price of grapes. The fixed percentage may not capture all market trends and requires a certain degree of speculation but the parties will realize greater certainty in their contracting and avoid the often time consuming process of calculating adjustments based on the grape crush report. Because pricing is most often calculated on a "per ton" basis, accurate weight measurements are critical to a fair and accurate total purchase price calculation. Accurate weight measurements require not only a precise, usually certified, scale and qualified weighmaster to prepare the weigh tags but also, for the benefit of the grower, the grapes should be weighed as close to harvest as possible. Transportation of harvested grapes, exposur...
Pricing Mechanisms
