CONTRACTUAL RELATIONS IN THE MILK AND MILK PRODUCTS SECTOR REGULATIONS

CONTRACTUAL RELATIONS IN THE MILK

AND MILK PRODUCTS SECTOR

SUBSIDIARY LEGISLATION 117.37

CONTRACTUAL RELATIONS IN THE MILK AND

MILK PRODUCTS SECTOR REGULATIONS

25th August, 2015

LEGAL NOTICE 284 of 2015.

(1) The title of these regulations is the Contractual

Relations in the Milk and Milk Products Sector Regulations.

(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

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;

CONTRACTUAL RELATIONS IN THE MILK

AND MILK PRODUCTS SECTOR

(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

CONTRACTUAL RELATIONS IN THE MILK

AND MILK PRODUCTS SECTOR

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 established

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