24Supply periods

24 Supply periods

(1) The milk supply agreement must specify the first and (subject to subsection (3)) last days of the period (the supply period) during which milk is to be supplied under the agreement. The agreement must identify the last day as a particular calendar date (for example, 30 June 2023). (2) To avoid doubt, the supply period of the milk supply agreement must have a definite end date (subject to subsection (3)).

Note: In certain circumstances, the milk supply agreement must allow the farmer to postpone the end of the supply period by 12 months: see section 36.

Cooperatives may enter into open‑ended milk supply agreements with their members (3) If: (a) the processor is a cooperative; and (b) the farmer is a member of the cooperative; then: (c) despite subsections (1) and (2), the milk supply agreement may specify that milk is to be supplied under the agreement until the agreement is terminated or the farmer ceases to be a member of the cooperative; and (d) if the agreement does so—for the purposes of Subdivision C, the supply period of the agreement is taken to be 90 days or longer.