Common use of Monthly Minimum Price Justification Clause in Contracts

Monthly Minimum Price Justification. Bega’s Monthly Minimum Prices are determined taking into account the following critical inputs: • financial returns from Australian and international dairy markets and price trends; • Australian dollar commodity exchange rates (especially against the US dollar, Yen and Euro); • the milk production forecasts for the relevant supply region accounting for climatic and farm sustainability conditions in each region; • competition for milk in the relevant supply region; and • the internal product mix, customer contracts and operational efficiencies across the Bega Cheese Group. Once determined, the Monthly Minimum Prices are then transposed into our payment system for the relevant supply region. The Monthly Minimum Prices payable to Exclusive Suppliers under this Agreement include a premium for supply to us on an exclusive basis. Entry by Suppliers into exclusive (as opposed to non-exclusive) milk supply agreements provides us with greater certainty in terms of the total volume of milk to be supplied in each Applicable Milk Supply Region. This increased certainty of supply assists our ability to meet our commitments to our customers and therefore facilitates our ability to offer a higher price to Suppliers who are prepared to enter into exclusive milk supply agreements.

Monthly Minimum Price Justification. Bega’s Monthly Minimum Prices are determined taking into account the following critical inputs: • financial returns from Australian and international dairy markets and price trends; • Australian dollar commodity exchange rates (especially against the US dollar, Yen and Euro); • the milk production forecasts for the relevant supply region accounting for climatic and farm sustainability conditions in each region; • competition for milk in the relevant supply region; and • the internal product mix, customer contracts and operational efficiencies across the Bega Cheese Group. Once determined, the Monthly Minimum Prices are then transposed into our payment system systems for the relevant supply region. The Monthly Minimum Prices payable to Exclusive Suppliers under this Agreement include a premium for supply to us on an exclusive basis. Entry by Suppliers into exclusive (as opposed to non-exclusive) milk supply agreements provides us with greater certainty in terms of the total volume of milk to be supplied in each Applicable Milk Supply Region. This increased certainty of supply assists our ability to meet our commitments to our customers and therefore facilitates our ability to offer a higher price to Suppliers who are prepared to enter into exclusive milk supply agreements.

Monthly Minimum Price Justification. Bega’s Monthly Minimum Prices are determined taking into account the following critical inputs: • financial returns from Australian and international dairy markets and price trends; • Australian dollar commodity exchange rates (especially against the US dollar, Yen and Euro); • the milk production forecasts for the relevant supply region accounting for climatic and farm sustainability conditions in each region; • competition for milk in the relevant supply region; and • the internal product mix, customer contracts and operational efficiencies across the Bega Cheese Group. Once determined, the Monthly Minimum Prices are then transposed into our payment system systems for the relevant supply region. The Monthly Minimum Prices payable to Exclusive Suppliers under this Agreement include a premium for supply to us on an exclusive basis. Entry by Suppliers into exclusive (as opposed to non-exclusivenon‐exclusive) milk supply agreements provides us with greater certainty in terms of the total volume of milk to be supplied in each Applicable Milk Supply Region. This increased certainty of supply assists our ability to meet our commitments to our customers and therefore facilitates our ability to offer a higher price to Suppliers who are prepared to enter into exclusive milk supply agreements.

Monthly Minimum Price Justification. Bega’s Monthly Minimum Prices are determined taking into account the following critical inputs: •  financial returns from Australian and international dairy markets and price trends; •  Australian dollar commodity exchange rates (especially against the US dollar, Yen and Euro); •  the milk production forecasts for the relevant supply region accounting for climatic and farm sustainability conditions in each region; •  competition for milk in the relevant supply region; and •  the internal product mix, customer contracts and operational efficiencies across the Bega Cheese Group. Once determined, the Monthly Minimum Prices are then transposed into our payment system systems for the relevant supply region. The Monthly Minimum Prices payable to Exclusive Suppliers under this Agreement include a premium for supply to us on an exclusive basis. Entry by Suppliers into exclusive (as opposed to non-exclusive) milk supply agreements provides us with greater certainty in terms of the total volume of milk to be supplied in each Applicable Milk Supply Region. This increased certainty of supply assists our ability to meet our commitments to our customers and therefore facilitates our ability to offer a higher price to Suppliers who are prepared to enter into exclusive milk supply agreements.