Regulation 9 Tiered pricingI1

An exclusive milk purchase contract may not include any provision that purports to provide that the price to be paid for milk under the contract changes if the amount of milk provided by the producer exceeds a certain volume.

Paragraph (1) does not apply to an exclusive milk purchase contract made by a business purchaser which has an internal democratic structure when purchasing milk from a producer member.

Where an exclusive milk purchase contract referred to in paragraph (1A) provides that the price to be paid for milk under the contract changes if the amount of milk provided by the producer exceeds a certain volume, it must do so in accordance with paragraphs (1C) to (1E).

The milk purchase contract must set out the amount by which the price is to change as a numerical value per unit of milk or milk constituent.

The milk purchase contract must specify the volume of milk above which the change in price is to apply.

The milk purchase contract may set out different amounts by which the price is to change that apply to different volumes of milk produced.

An “exclusive milk purchase contract” is a milk purchase contract that provides that the producer may not make a milk purchase contract with another business purchaser.