Milk (Regulation of Supply) Act, 1994

Registration of contracts.

6.—(1) The Agency shall, on the application of either party, register a contract for the supply of raw milk for heat treatment for liquid consumption made between a producer and a processor provided the requirements of this section are complied with.

(2) The contract shall be a contract for an unbroken period of 12 months or more which—

(a) specifies that the milk supplied by the producer will at all times be at least of the quality specified by law as being suitable for raw milk intended for processing into heat-treated milk for liquid consumption;

(b) provides for supply all the year round by the producer of raw milk with a specified minimum percentage of the producer's production being supplied during a prescribed period (the “winter months”) or for supply during the winter months only;

(c) in the opinion of the Agency, provides adequate compensation to the producer for raw milk supplied under the contract throughout the year, taking into account, in particular, in relation to the winter months, the economic cost of production of raw milk of suitable quality for heat treatment for liquid consumption all the year round;

(d) in respect of every year of its existence after the first year, is supplemented by an agreement between the parties submitted to the Agency not later than the end of June in that year which, in the opinion of the Agency, provides sufficient guarantee that adequate compensation will be made to the producer for raw milk supplied under the contract during the following winter months taking into account, in particular, in relation to the winter months, the economic cost of production of raw milk of suitable quality for heat treatment for liquid consumption all the year round.

(3) The producer shall satisfy the Agency that the milk production holding meets the requirements in relation to milk production holdings in the Council Directive.

(4) The processor shall satisfy the Agency that the heat treatment establishment is approved under the Council Directive or is the subject of a derogation under that Council Directive and shall undertake to purchase raw milk to be heat-treated and sold as milk for liquid consumption only in accordance with a registered contract unless such sale is exempt under section 5 .