Common use of Milk Price Clause in Contracts

Milk Price. Milk Price The Minimum Price is based on the supply of grade 1 quality milk and is the minimum monthly butterfat and protein price paid in each month for the 2021/22 season. This price is based on butterfat and protein at a ratio of 1:2 and reference milk solids of 4.0% butterfat and 3.2% protein Payments to Suppliers are made in terms of $ per kilogram of fat and $ per kilogram of protein and paid as at the Commencement Date of this Agreement for the supply of Grade 1 quality milk is as follows: For the 2021/22 Milk Year Opening minimum price Butterfat $4.89 per kilogram Protein $9.78per kilogram Quality deductions apply in accordance with the Milk Supply Policy (see Schedule 1) and this Schedule 5 (see Milk Quality Payment Matrix below). The opening Milk Price represents the Minimum Price you will be paid for the relevant Year. Justification of the Minimum price The opening minimum price has been determined based on an assessment of the expected dairy market and general business conditions for the 2021/22 Milk Year. The factors which FDA consider in setting the minimum price include: • evaluation of expected dairy market conditions in particular export dairy market conditions, with variable factors including global commodity prices and exchange rates; • anticipated milk supply volumes and strong competition for milk; • costs of dairy manufacturing including operating and overhead costs; and • providing certainty to our milk supplier base. FDA may increase (step-up) the Milk Price during based upon prevailing business conditions. Step-ups may be retrospective or not depending upon business conditions. If a step-up is retrospective, you will be paid the step-up value on all Milk you supply from the commencement of the current Year.

Milk Price. Milk Price The Minimum Price is based on the supply of grade 1 quality milk and is the minimum monthly butterfat and protein price paid in each month for the 2021/22 season. For the supply of Grade 1 quality milk, the overall opening minimum price is $6.90 per kilogram. This price is based on butterfat and protein at a ratio of 1:2 and reference milk solids of 4.0% butterfat and 3.2% protein Payments to Suppliers are made in terms of $ per kilogram of fat and $ per kilogram of protein and paid as at the Commencement Date of this Agreement for the supply of Grade 1 quality milk is as follows: For the 2021/22 Milk Year Opening minimum price Butterfat $4.89 4.777 per kilogram Protein $9.78per 9.554 per kilogram Quality deductions apply in accordance with the Milk Supply Policy (see Schedule 1) and this Schedule 5 (see Milk Quality Payment Matrix below). The opening Milk Price represents the Minimum Price you will be paid for the relevant Year. Justification of the Minimum price The opening minimum price has been determined based on an assessment of the expected dairy market and general business conditions for the 2021/22 Milk Year. The factors which FDA consider in setting the minimum price include: • evaluation of expected dairy market conditions in particular export dairy market conditions, with variable factors including global commodity prices and exchange rates; • anticipated milk supply volumes and strong competition for milk; • costs of dairy manufacturing including operating and overhead costs; and • providing certainty to our milk supplier base. FDA may increase (step-up) the Milk Price during based upon prevailing business conditions. Step-ups may be retrospective or not depending upon business conditions. If a step-up is retrospective, you will be paid the step-up value on all Milk you supply from the commencement of the current Year.

Milk Price. Milk Price The Minimum Price is based on the supply of grade 1 quality milk and is the minimum monthly butterfat and protein price paid in each month for the 2021/22 season. For the supply of Grade 1 quality milk, the overall opening minimum price is $6.80 per kilogram. This price is based on butterfat and protein at a ratio of 1:2 and reference milk solids of 4.0% butterfat and 3.2% protein Payments to Suppliers are made in terms of $ per kilogram of fat and $ per kilogram of protein and paid as at the Commencement Date of this Agreement for the supply of Grade 1 quality milk is as follows: For the 2021/22 Milk Year Opening minimum price Butterfat $4.89 4.71 per kilogram Protein $9.78per 9.42 per kilogram Quality deductions apply in accordance with the Milk Supply Policy (see Schedule 1) and this Schedule 5 (see Milk Quality Payment Matrix below). The opening Milk Price represents the Minimum Price you will be paid for the relevant Year. Justification of the Minimum price The opening minimum price has been determined based on an assessment of the expected dairy market and general business conditions for the 2021/22 Milk Year. The factors which FDA consider in setting the minimum price include: • evaluation of expected dairy market conditions in particular export dairy market conditions, with variable factors including global commodity prices and exchange rates; • anticipated milk supply volumes and strong competition for milk; • costs of dairy manufacturing including operating and overhead costs; and • providing certainty to our milk supplier base. FDA may increase (step-up) the Milk Price during based upon prevailing business conditions. Step-ups may be retrospective or not depending upon business conditions. If a step-up is retrospective, you will be paid the step-up value on all Milk you supply from the commencement of the current Year.