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 (i.e. including Bega, Tatura Milk Industries Pty Ltd and Bega Dairy and Drinks Pty Ltd). Once determined, the Monthly Minimum Prices are then transposed into Bega’s payment systems for the relevant supply region.