Commonwealth Consolidated Regulations

COMPETITION AND CONSUMER (INDUSTRY CODES--DAIRY) REGULATIONS 2019 - REG 34

Unilateral terminations by farmers

  (1)   The milk supply agreement must specify the circumstances (if any) in which the farmer may unilaterally terminate the agreement.

Unilateral terminations by processors

  (2)   The milk supply agreement must specify the circumstances (if any) in which the processor may unilaterally terminate the agreement.

  (3)   A circumstance specified under subsection   (2) must involve a material breach of the milk supply agreement by the farmer.

Processes for unilateral terminations

  (4)   The milk supply agreement must specify the processes (if any) by which the agreement may be unilaterally terminated.

  (5)   The milk supply agreement must require a unilateral termination of the agreement to be in writing.

  (6)   If a party (the first party ) to the milk supply agreement may unilaterally terminate the agreement, the agreement must require the first party to give to the other party, as soon as practicable after the first party unilaterally terminates the agreement:

  (a)   the termination; and

  (b)   written notice of:

  (i)   the reason for the termination; and

  (ii)   the day the termination takes effect.

Note:   For the effect of a termination, see section   41.