(1) New co-op must supply raw milk to independent processors.

(2) The obligation in subclause (1) is subject to regulations 5 to 15.

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.

(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.

(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).

(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.

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.

(1) This regulation applies to a quantity of raw milk to be supplied in 1 day to an independent processor and any interconnected body of the independent processor, except a quantity of winter milk to which regulation 7 applies.

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

• (a) at least 3 months before the date on which the milk is to be supplied; and

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

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

(1) This regulation applies to a quantity of winter milk that exceeds 20 000 litres to be supplied in 1 day to an independent processor and any interconnected body of the independent processor.

(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) at least 18 months before the date on which the winter milk is to be supplied; and

• (b) at least 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.

(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:

(1) New co-op may require an independent processor to contract to buy a quantity of raw milk not exceeding 80% of the quantity of raw milk estimated by the independent processor under regulation 6(2)(b) or 7(2)(b).

(2) An independent processor may require new co-op to contract to sell a quantity of raw milk not exceeding 120% of the quantity of raw milk estimated by the independent processor under regulation 6(2)(b) or 7(2)(b).

(3) New co-op or an independent processor may require that a contract for new co-op to supply raw milk to an independent processor includes terms that are reasonable having regard to industry practice before the commencement of these regulations.

(4) New co-op may require an independent processor to contract to notify new co-op of its actual requirement for raw milk by noon on the day before the raw milk is to be supplied.

(5) This regulation does not allow new co-op to require that a contract to supply raw milk to an independent processor includes a take or pay requirement.

(1) This regulation applies to each season after the transitional period.

(2) The total volume of raw milk that new co-op must supply to independent processors under regulation 4 is limited to 600 million litres per season.

(2A) [Revoked]

(3) The total volume of that raw milk that new co-op must supply to 1 independent processor (except New Zealand Dairy Foods Limited and interconnected bodies of that company), and interconnected bodies of the independent processor, is limited to 50 million litres per season.

(4) The total volume of that raw milk that new co-op must supply to New Zealand Dairy Foods Limited, and interconnected bodies of that company (other than new co-op), is limited to 250 million litres per season.

(5) The total volume of that raw milk that is organic milk that new co-op must supply to 1 independent processor in a season is limited to the volume of organic milk supplied to that independent processor by The New Zealand Co-operative Dairy Company Limited and Kiwi Co-operative Dairies Limited in the 2000/01 season.

(1) Regulations 4 to 10 do not apply to the supply of raw milk by new co-op that exceeds the limit in regulation 11.

(2) The supply of raw milk by new co-op in excess of a limit in regulation 11(3) or (4) is not to be counted in calculating whether the limit in regulation 11(2) is met.

(3) [Revoked]

Raw milk supplied by new co-op to an independent processor after these regulations commence under contracts in force immediately before that date must be included—

• (a) in calculating the volume of raw milk specified in regulation 8(3) and (4); and

• (b) in calculating the volume of raw milk supplied by new co-op for the purpose of regulation 11.

New co-op is authorised to perform its obligations under this Part through an associated person.

(1) New co-op must publish forecasts, in each season, of—

• (a) the total cost of milk for the season; and

• (aa) the farm gate milk price for the season; and

• (b) [Revoked]

• (c) kilograms of milksolids supplied in the season; and

• (d) the additional cost of winter milk for each Island for the season; and

• (e) the additional cost of organic milk for the season.

(2) New co-op must publish the total volume of raw milk that new co-op has contracted to supply to independent processors under Part 1 for the season in which the information is published, and for the following 5 seasons.

(3) New co-op must publish the forecasts specified in subclause (1) and the information specified in subclause (2) as soon as practicable after each of the following dates in each season:

• (a) 1 June:

• (b) 1 September:

• (c) 15 December:

• (d) 1 March.

(4) New co-op must publish, for each season,—

• (a) [Revoked]

• (b) [Revoked]

• (c) the total cost of milk for the season; and

• (ca) the farm gate milk price for the season; and

• (d) [Revoked]

• (e) kilograms of milksolids supplied in the season; and

• (f) the additional cost of winter milk for each Island for the season; and

• (fa) the additional cost of organic milk for the season; and

• (g) the total winter milk premium for the season.

• (h) [Revoked]

(5) [Revoked]

(6) New co-op must publish the information specified in subclause (4) as soon as practicable after the end of the season to which the information relates.

(7) New co-op must continuously publish the forecasts specified in subclause (1) and the information specified in subclauses (2) and (4) on new co-op's website in an electronic form that is publicly accessible.

(1) Forecasts and information supplied to the Commission under section 117(1) or (2) of the Act must be verified by statutory declaration in the form specified in the Schedule.

(2) The statutory declaration referred to in subclause (1) must be made by a director or officer of new co-op.