Dairy Industry Restructuring (Raw Milk) Amendment Regulations 2008 (SR 2008/399)

2008/399

Crest

Dairy Industry Restructuring (Raw Milk) Amendment Regulations 2008

Anand Satyanand, Governor-General

Order in Council

At Wellington this 20th day of October 2008

Present:
The Right Hon Helen Clark presiding in Council

Pursuant to sections 115 and 116 of the Dairy Industry Restructuring Act 2001, His Excellency the Governor-General, acting on the advice and with the consent of the Executive Council, makes the following regulations.

Regulations

1 Title
  • These regulations are the Dairy Industry Restructuring (Raw Milk) Amendment Regulations 2008.

2 Commencement
  • These regulations come into force on 1 June 2009.

3 Principal regulations amended
4 Interpretation
  • (1) Regulation 3(1) is amended by inserting the following definition in its appropriate alphabetical order:

    balance of the season, in relation to a season, means the months of November, December, January, March, April, and May.

    (2) The definition of transitional period in regulation 3(1) is revoked.

    (3) The definition of winter milk in regulation 3(1) is amended by omitting May or.

    (4) Regulation 3(2) is amended by inserting the following paragraph before paragraph (a):

    • (aa) chief executive:.

5 New regulations 5 to 5D substituted
  • Regulation 5 is revoked and the following regulations are substituted:

    5 Advance estimates of raw milk requirements
    • An independent processor must, in accordance with regulations 6 and 7, provide new co-op with advance estimates of the quantity of raw milk required by the independent processor.

    5A New co-op must prepare preliminary forecasts of estimated total raw milk requirements in each season
    • (1) In each season, new co-op must prepare a preliminary forecast of the estimated total raw milk requirements of—

      • (a) each independent processor for the season; and

      • (b) all independent processors for the season.

      (2) The preliminary forecast of the estimated total raw milk requirements of each independent processor for the season is to be based on—

      • (a) the total quantity of winter milk actually supplied to the independent processor in the season; and

      • (b) the estimated total quantity of raw milk to be supplied to the independent processor in October of the season based on an aggregate of the daily estimates provided by the independent processor in July in accordance with regulation 6(2)(a); and

      • (c) the estimated total quantity of raw milk to be supplied to the independent processor in all other months of the season based on the quantity estimated under paragraph (b) plus 10%.

      (3) The preliminary forecast of the estimated total raw milk requirements of all independent processors for the season is to be based on the aggregate of each independent processor's raw milk requirements under subclause (2).

      (4) New co-op must, by the 10th working day in August in a season, provide the preliminary forecasts prepared under subclauses (2) and (3) to the chief executive.

    5B New co-op must prepare final forecasts of estimated total raw milk requirements in each season
    • (1) In each season, new co-op must prepare final forecasts of the estimated total raw milk requirements of—

      • (a) each independent processor for the season; and

      • (b) all independent processors for the season.

      (2) The final forecast of the estimated total raw milk requirements for each independent processor in the season is to be based on—

      • (a) the total quantity of winter milk actually supplied to the independent processor in the season; and

      • (b) the total quantity of raw milk actually supplied to the independent processor in August, September, and October in the season; and

      • (c) the estimated total quantity of raw milk to be supplied to the independent processor in the balance of the season based on the total quantity of raw milk supplied to the independent processor in October plus 10%.

      (3) The final forecast of the estimated total raw milk requirements of all independent processors for the season is to be based on the aggregate of each independent processor's raw milk requirements for the season under subclause (2).

    5C Chief executive must verify final forecasts and prorate if estimated total demand for raw milk in season is likely to exceed limit on supply
    • (1) New co-op must, by the 10th working day in November in a season, provide the final forecasts prepared under regulation 5B to the chief executive for verification.

      (2) The chief executive must—

      • (a) verify the information in the final forecasts; and

      • (b) if the final forecasts as verified indicate that the estimated total quantity of raw milk required by all independent processors for the season is likely to exceed the limit on the volume of raw milk that new co-op must supply under regulation 11(2),—

        • (i) calculate, on a pro rata basis, the decrease in the total quantity of raw milk that each independent processor may receive for the balance of the season in order to bring the estimated total demand for raw milk in the season within the limit specified in regulation 11(2); and

        • (ii) publish a notice in the Gazette stating that the maximum quantity of raw milk that independent processors may receive from new co-op for the balance of the season is to be adjusted to bring the estimated total demand for raw milk in the season within the limit specified in regulation 11(2); and

        • (iii) notify new co-op and each independent processor in writing of the decrease in the total quantity of raw milk that new co-op may supply to the independent processor for the balance of the season.

    5D New co-op must advise chief executive of actual supply of raw milk after close of season
    • New co-op must, within 20 working days after the close of a season, provide a return to the chief executive stating how much raw milk was actually supplied by new co-op—

      • (a) to each independent processor in each month of the season; and

      • (b) to all independent processors for the whole of the season.

6 Raw milk estimates
  • Regulation 6(2) is amended by omitting an estimate may be required by new co-op and substituting an independent processor must provide new co-op with an estimate for supply.

7 Winter milk estimates for quantities exceeding 20 000 litres
  • Regulation 7 is amended by revoking subclauses (2) and (3) and substituting the following subclauses:

    • (2) For a quantity of winter milk to which subclause (1) applies, an independent processor must provide new co-op with an estimate for supply—

      • (a) up to 18 months before the date on which the winter milk is to be supplied; and

      • (b) up to 1 week before the date on which the winter milk is to be supplied.

    • (3) A quantity estimated under subclause (2)(b) must be within the range from 40% more than the quantity estimated under subclause (2)(a) to 40% less than that quantity.

8 Price of raw milk
9 Limits on volume of raw milk
10 Regulation 12 revoked
11 Regulations do not apply to excess supply of raw milk
  • (1) Regulation 13(1) is amended by omitting limits in regulations 11 and 12 and substituting limit in regulation 11.

    (2) Regulation 13(3) is revoked.

12 Raw milk supplied under pre-commencement contracts
  • Regulation 14(b) is amended by omitting regulations 11 and 12 and substituting regulation 11.

Rebecca Kitteridge,
Clerk of the Executive Council.


Explanatory note

This note is not part of the regulations, but is intended to indicate their general effect.

These regulations, which come into force on 1 June 2009, amend the Dairy Industry Restructuring (Raw Milk) Regulations 2001 by—

  • providing a rationing rule if the estimated total demand for raw milk in a season by independent processors is likely to exceed the quantity that new co-op must supply in the season (new regulations 5A to 5D):

  • providing that the limit on the volume of raw milk that new co-op must supply to independent processors in a season is 600 million litres:

  • omitting the month of May from the definition of winter milk:

  • revoking spent provisions relating to the expiry of the transitional period.


Issued under the authority of the Acts and Regulations Publication Act 1989.

Date of notification in Gazette: 23 October 2008.

These regulations are administered by the Ministry of Agriculture and Forestry.