Common use of Productivity Incentive Clause in Contracts

Productivity Incentive. (MPS 1 only) If the Applicable Pay Rate is MPS 1, Tatura will pay the Supplier the Productivity Incentive. If there is a Sharefarmer Supplier, Tatura will pay the Tatura Supplier and the Sharefarmer Supplier their Relevant Percentage of the Productivity Incentive. The Productivity Incentive will be paid at the relevant rate for the amount of Milk Solids in Fresh Milk and Grade 2 Milk accepted by Tatura during each month of the Term. The rates for the Productivity Incentive are set out in Item 7 of the Details. If there is more than one Farm listed in Item 1 of the Details, Tatura will group all those Farms together for the purposes of calculating the Productivity Incentive.