New Zealand Legislation: Regulations

8 Price of raw milk

• (1) New co-op and an independent processor may agree a price for the supply of raw milk.

  (2) An independent processor may, however, require new co-op to supply the raw milk specified in subclause (3) or subclause (4) at the default milk price unless there is an agreement under subclause (1) about the supply of that raw milk.

  (3) In each season, except the 2001/02 season, subclause (2) applies to—

  • (a) raw milk required by an independent processor from new co-op in October; and

  • (b) raw milk required by an independent processor from new co-op in August, September, November, December, January, February, March, April, or May that does not exceed by more than 10% the raw milk required by the independent processor from new co-op in October in that series of months; and

  • (c) winter milk required by an independent processor from new co-op.

  (4) [Revoked]

  (5) The default milk price for raw milk supplied to an independent processor in a season is the wholesale milk price for that season plus,—

  • (a) for raw milk except organic milk or winter milk, the reasonable cost of transporting the raw milk to the independent processor; and

  • (b) for organic milk,—

    • (i) the reasonable cost of transporting the raw milk to the independent processor; plus

    • (ii) the reasonable additional costs to new co-op of procuring and supplying the organic milk; and

  • (c) for winter milk—

    • (i) the reasonable cost of transporting the raw milk to the independent processor; plus

    • (ii) the additional cost of winter milk in the Island in which the winter milk is supplied.

  (6) The wholesale milk price for a season is the price per kilogram of milksolids calculated using the following formula:

  (total payout + new co-op retention − annualised share value)

  kilograms of milksolids

  Regulation 8(2): substituted, on 30 November 2001, by regulation 3 of the Dairy Industry Restructuring (Raw Milk) Amendment Regulations 2001 (2001/353).

  Regulation 8(3)(b): amended, on 1 June 2009, by regulation 8(1) of the Dairy Industry Restructuring (Raw Milk) Amendment Regulations 2008 (SR 2008/399).

  Regulation 8(4): revoked, on 1 June 2009, by regulation 8(2) of the Dairy Industry Restructuring (Raw Milk) Amendment Regulations 2008 (SR 2008/399).