Common use of Sampling Clause in Contracts

Sampling. If a random sample result for either test identifies milk as being Grade 2, Grade 3 or Grade 4 quality (refer to Milk Quality Payment Matrix in Schedule 5) for Bactoscan or Thermoduric, FDA will continue testing each subsequent milk consignment until three consecutive Grade 1 Premium results are achieved for the relevant test. The first three results outside Premium in a given testing cycle attracts no discount. For the fourth (and any further) consignment that is 2nd Grade, 3rd Grade or 4th Grade quality for Bactoscan or Thermoduric (as applicable), a percentage deduction to those consignments will apply. It is the suppliers’ responsibility to use the SMS/email/internet (FDA Portal) system to monitor milk quality results. Additional samples may be tested for the Milk supplier but will not be used to adjust existing results. A supplier who supplies more than 60 days of Grade 3 or Grade 4 Bactoscan or Thermoduric (considered separately) milk across a rolling 12- month period may upon written notice have their milk collection suspended by FDA until the supplier demonstrates their milk production has returned to Grade 1 Premium for all quality parameters. Somatic Cell Count (SCC) - monthly weighted average SCC testing measures the number of white blood cells (somatic cells) in milk and is a measure of mastitis in the herd. Each farm’s milk consignment is tested for SCC with results reported to the supplier. FDA calculates a monthly weighted average by taking into account the total SMCC of the supplier’s milk and litres collected, as set out below. Calculation of the monthly SCC weighted average The weighted average is determined in two steps:

Sampling. If a random sample result for either test identifies milk as being Grade 2, Grade 3 or Grade 4 quality (refer to Milk Quality Payment Matrix in Schedule 5) for Bactoscan or Thermoduric, FDA will continue testing each subsequent milk consignment until three consecutive Grade 1 Premium results are achieved for the relevant test. The first three results outside Premium in a given testing cycle attracts no discount. For the fourth (and any further) consignment that is 2nd Grade, 3rd Grade or 4th Grade quality for Bactoscan or Thermoduric (as applicable), a percentage deduction to those consignments will apply. It is the suppliers’ ' responsibility to use the SMS/email/internet (FDA Portal) system to monitor milk quality results. Additional samples may be tested for the Milk supplier but will not be used to adjust existing results. A supplier who supplies more than 60 days of Grade 3 or Grade 4 Bactoscan or Thermoduric (considered separately) milk across a rolling 12- 12-month period may upon written notice have their milk collection suspended by FDA until the supplier demonstrates their milk production has returned to Grade 1 Premium for all quality parameters. Somatic Cell Count (SCC) - monthly weighted average SCC testing measures the number of white blood cells (somatic cells) in milk and is a measure of mastitis in the herd. Each farm’s 's milk consignment is tested for SCC with results reported to the supplier. FDA calculates a monthly weighted average by taking into account the total SMCC of the supplier’s 's milk and litres collected, as set out below. Calculation of the monthly SCC weighted average The weighted average is determined in two steps: