STATEMENT OF CIRCUMSTANCES IN WHICH NORCO WILL ENTER INTO A PUBLISHED MILK SUPPLY AGREEMENT (section 12 Dairy Industry Code of Conduct)
Norco is a co-operative and will only enter into a milk supply agreement with dairy farmer suppliers who are members of the co-operative. If a dairy farmer would like to apply for membership, they are encouraged to make contact with our Member Services Team. Membership applications will be dealt with in accordance with Norco's Rules.
For the financial year commencing 1 July 2020, Norco believes that the current members will provide sufficient milk for Norco's requirements. However, this may change with seasonal conditions and changing customer demands. If our circumstances change in relation to further year-round supply, we will provide further details on this site.
Norco's commercial interests are best served through the procurement of milk under ongoing, exclusive supply arrangements. These arrangements allow Norco to plan its milk supply requirements in conjunction with the Norco business's commitments to supply milk and other dairy products to its own customers. These ongoing arrangements are also consistent with Norco's aim, as a co-operative, to be the preferred purchaser of its members' milk. Accordingly, Norco has formulated ongoing milk supply agreements which continue until those agreements are terminated or the supplier has ceased to be a Norco member. Within this ongoing supply period, farmers can choose a one, three or five year Guaranteed Supply Period for the purposes of being entitled to Loyalty Payments. Each Guaranteed Supply Period is renewed on a rolling basis unless the supplier or Norco gives 180 days prior written notice to the other.
In accordance with the requirements of section 12(5) of the Code, Norco has also formulated a non-exclusive, ongoing Milk Supply Agreement.
Norco has also formulated a non-exclusive, fixed one year term Milk Supply Agreement to cater for those dairy farmer members who want to supply milk, up to a maximum volume limit, to Norco under a shorter term arrangement.
Norco has published, and is prepared to acquire milk under the following standard form Milk Supply Agreements in the respective circumstances referred to above:
1. Ongoing exclusive Milk Supply Agreement with the choice of one, three or five year Guaranteed Supply Period;
2. Ongoing non-exclusive Milk Supply Agreement with the choice of, one, three or five year Guaranteed Supply Period;
3. Short term non-exclusive Milk Supply Agreement for the financial year ending 30 June 2021.
These Milk Supply Agreements are available here on our website, and our milk supply team is available to explain these agreements further for members or potential members of our co-operative.
The supply of milk under the Ongoing Exclusive Milk Supply Agreement provides the benefit to the supplier of a single price for all of their milk supplied in a month, regardless of whether that is surplus to Norco's requirements. Non-exclusive contracts are for set volumes per month, and any supply over this amount attracts a rate that is not as attractive, due to the returns we are able to generate from this milk.
The co-operative principles under which Norco operates require it to apply its standard form Milk Supply Agreements to all member suppliers on the same basis. For this reason, Norco will not change the terms of those standard form Agreements to accommodate the individual needs and requirements of individual farmers.
If you would like to hear more about of our co-operative, or enquire about becoming a member, please contact a member of our Member Services Team by clicking on the contact us link below.