Regulations, 2015

L. N. 284 of 2015

SUPPLIES AND SERVICES ACT

(CAP. 117)

Contractual Relations in the Milk and Milk Products Sector

Regulations, 2015

IN exercise of the powers conferred by article 3 of the Supplies

and Services Act, the Minister for the Economy, Investment and

Small Business, in consultation with the Minister for Sustainable

Development, the Environment and Climate Change, has made the

following regulations:-

(1)

The title of these regulations is the Contractual Citation and

scope.

Relations in the Milk and Milk Products Sector Regulations, 2015.

(2) These regulations implement, as regards contractual

relations in the milk and milk products sector, the relevant provisions

of Regulation (EU) No 1308/2013 of the European Parliament and of

the Council of 17 December, 2013 establishing a common

organisation of the markets in agricultural products and repealing

Council Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) No

1037/2001 and (EC) No 1234/2007.

For the purpose of these regulations and unless the context Interpretation.

otherwise requires

"collector" means an undertaking which transports raw milk

from a milk producer or another collector to a processor of raw milk

or another collector, where the ownership of the raw milk is

transferred in each case;

"contract" means a written agreement between the first

purchaser of raw milk and a milk producer, drawn up according to

regulation 4

Provided that where raw milk is delivered by a milk

producer to a co-operative, of which he is a member, whose statute

governing such membership contains provisions having the same

effects as the provisions set out in regulation 4(1)(a), (b) and (c), such

statute shall be deemed to cover the requirements of a "contract"

wherever these are set out in the provisions of these regulations;

"first purchaser" means an undertaking or group which buys

milk from producers in order to

(a)

subject it to collecting, packing, storing, chilling or

processing, including under a contract;

(b)

sell it to one or more undertakings treating or

processing milk or other milk products.

The competent authority for the purposes of these

regulations shall be the Director of Agriculture.

(1)

Every delivery of raw milk by a milk producer to a

processor of raw milk whether delivered directly or through a

collector shall be covered by a written contract between the parties,

which contract shall

(a)

be made in advance of the delivery;

(b)

be made in writing; and

(c)

include, in particular, the following elements

(i)

the price payable for the delivery, which

shall

-

be static and be set out in the contract,

and, or,

-

be calculated by combining various

factors set out in the contract, which may include

market indicators reflecting changes in market

conditions, the volume delivered and the quality or

composition of the raw milk delivered;

(ii) the volume of raw milk which may and, or

must be delivered and the timing of such deliveries;

(iii) the duration of the contract, which may

include either a definite or an indefinite duration with

termination clauses;

(iv) details

regarding

payment

periods

and

procedures;

(v)

arrangements for collecting or delivering raw

milk; and

(vi) rules applicable in the event of force majeure.

(2) The contract shall stipulate the number of heads of

productive bovines (milking cows) authorised by the dairy to be

present on-farm at any one time plus or minus a certain percentage, in

view of some drying off bovines (milking cows) and others just

starting, within the maximum capacity approved by the Veterinary

Regulation Department.

(3) The contract shall bind the dairy to accept all the milk

produced on the particular farm

Provided that where heads of productive bovines (milking

cows) are found to be on-farm in excess of the number authorised in

the contract in accordance with sub-regulation (2), the dairy shall not

remain so bound. In such cases the destination, which shall not be

another dairy, of the extra milk shall be declared by the milk

producer.

(4) The contract shall bind the milk producer to seek the

written approval of the dairy as an amendment to the contract prior to

increasing the number of heads of productive bovines (milking cows)

on-farm.

(5) Contracts and, or their amendments, if any, shall be

notified by the dairy to the Veterinary Regulation Department and the

Agriculture Directorate within five (5) working days.

(6) Contracts shall be based on exclusivity, that is the milk

producer shall bind himself to deliver all his milk to the dairy under

such contract.

(7) If the delivery of raw milk is made through one or more

collectors, all the stages of the delivery including the stage when the

raw milk is transferred from the milk producer to the collector and the

stage when the milk is ultimately transferred to the processor of raw

milk shall be covered by the contract referred to in sub-regulation (1).

(1)

A system of audited milk recording shall be Technical

established in such manner as may be set out by the Veterinary parameters.

Regulation Department.

(2) Dairies shall be required to supply true plate count (Total

bacterial count) at 30 degrees centigrade and somatic cell count on a

monthly basis directly to the Veterinary Regulation Department and

the Agriculture Directorate.

(3) Dairies shall be required to supply fat content on a monthly

basis to the Veterinary Regulation Department and the Agriculture

Directorate.

(4) The first purchasers of raw milk shall declare to the

Agriculture Directorate the individual and cumulative quantity of raw

milk that has been delivered to them each month, which declarations

are to be submitted before the end of the following fortnight.

(5) The first purchasers of raw milk shall declare to the

Agriculture Directorate the average farm gate price of raw milk that

has been paid by them to the milk producers, which declarations are

to be submitted on a monthly basis and before the end of the

following fortnight.

Where a written contract for the delivery of raw milk has

been entered into between a milk producer and a first purchaser of

raw milk, such contract shall be for a duration of not less than three

years. Such contract shall at any given time cover at least a period

spanning the current calendar year, and the successive two calendar

years.