Common use of Stop Fee Clause in Contracts

Stop Fee. Under 1,000 litre Collection Suppliers will incur a fee when collection is less than 1,000 litres on a daily or skip-a-day collection. This fee is waived when: • Suppliers start a new farm or transfer their milk production from another processor. Suppliers have 30 days from the commencement of supply to produce 1,000 litres or more per collection. • Suppliers are ceasing milk supply e.g. exiting the dairy industry. Suppliers will be exempt from the fee for the last 30 days of supply. • A Supplier’s herd seasonally calves. Stop fees are waived when collections are less than 1,000 litres for the first 30 days after the commencement of supply of milk at calving, and during the last 30 days prior to the herd drying off. A seasonal calving herd is one which meets the following criteria: – the non-supply period must be more than 30 days; – milk supply must be greater than 1,000 litres on skip-a-day collection within 30 days of the recommencement of milk collection after the dry period; and – at the end of the lactation, the herd must be dried off within 30 days of producing less than 1,000 litres on every day or skip-a-day collection. Herds not meeting these criteria will be considered to be non-seasonal calving herds and hence subject to the stop fee when skip-a-day or everyday milk collection is less than 1,000 litres.