Common use of Milk Price Adjustments Clause in Contracts

Milk Price Adjustments. (a) Milk Price Increases Bega will review milk prices throughout the Term. Where market conditions are conducive to a price increase, Bega may, during the Term, announce the payment of a: • Step Up – which is an additional payment that is paid to the Supplier for all Milk the Supplier has supplied to Bega during a period of the Term prior to Bega’s announcement; and/or • Price Increase – which is an additional payment that is paid to the Supplier for all Milk the Supplier has supplied to Bega during a period of the Term after Bega’s announcement. Bega will notify the Supplier in writing of any Step Up and/or Price Increase.