57Milk supply agreements entered into before 1 January 2020

57 Milk supply agreements entered into before 1 January 2020

(1) This section applies in relation to a milk supply agreement entered into by a processor before 1 January 2020. (2) The transition period, in relation to the milk supply agreement, is the period: (a) starting on 1 January 2020; and (b) ending on the earlier of: (i) the day the agreement is first varied on or after 1 January 2020; and (ii) 31 December 2020. (3) Subparagraph (2)(b)(i) does not apply to a variation of the milk supply agreement if the only effect of the variation is to increase a minimum price under the agreement. Code does not apply during transition period (4) Subdivision A of Division 2 of Part 2 (obligation to act in good faith) does not apply in relation to anything done under the milk supply agreement during the transition period. (5) Subdivisions C to G of Division 2 of Part 2 (other than section 16) do not apply in relation to the milk supply agreement during the transition period. Agreement must comply with Code after end of transition period (6) Subsections (7) and (8) apply if the milk supply agreement is in force immediately after the end of the transition period. (7) To avoid doubt, after the end of the transition period: (a) Subdivision A of Division 2 of Part 2 (obligation to act in good faith) applies in relation to anything done under the milk supply agreement in the same way as that Subdivision applies in relation to anything done under a milk supply agreement entered into on or after 1 January 2020; and (b) Subdivisions C to G of Division 2 of Part 2 apply in relation to the milk supply agreement. (8) The processor contravenes this subsection if, immediately after the end of the transition period, the milk supply agreement does not comply with the Code.

Civil penalty: 300 penalty units.

Section does not affect agreements entered into on or after 1 January 2020 (9) To avoid doubt, this section does not affect the application of this instrument in relation to a milk supply agreement entered into on or after 1 January 2020.