Common use of Production Costs Clause in Contracts

Production Costs. PRODUCER’s production costs shall not differ materially from similar costs typically incurred by large producers producing hogs of a high quality, unless consented to in advance writing by HORMEL FOODS. PRODUCER shall provide HORMEL FOODS advance notice of contemplated significant changes in production practices, including without limitation significant changes in the use of feed additives or medications, implementation of new equipment or facilities, or any other change which has a material impact on production costs.