The Fair Dealing Obligations (Milk) Regulations 2024

Referral of relevant variable price to independent third party

11.—(1) A milk purchase contract that uses a relevant variable price must include a third-party verification procedure.

(2) A “a third-party verification procedure” is a procedure which enables a producer to refer an explanation given in accordance with regulation 8(9) to an independent person—

(a) for the purpose of seeking their professional opinion as to the extent to which any references to business-sensitive data are accurate; and

(b) to confirm that, in the reasonable, professional opinion of the independent person, the explanation is supported by the business-sensitive data.

(3) The business purchaser must—

(a) cooperate with the independent person, to such extent as is reasonably requested by the person; and

(b) provide such information or specified documents as are reasonably requested by the person.

(4) Paragraph (3) does not apply if the independent person does not confirm to the business purchaser that they will not share business-sensitive data without the business purchaser’s consent.

(5) The milk purchase contract must—

(a) provide that the independent person engaged to verify business-sensitive data is to be agreed upon by the business purchaser and producer; and

(b) provide for the costs of the independent person to be apportioned between the parties.

(6) But the milk purchase contract must provide that the producer may not be apportioned a greater share of the costs of engaging the independent person than is apportioned to the business purchaser.

(7) In this regulation,

“business-sensitive data” is data—

(a)

the source of which is the business purchaser; and

(b)

that is of a confidential nature;

“relevant variable price” means a variable price which is determined with reference to business-sensitive data.

(8) Data is of a confidential nature if it is stated as being so in the milk purchase contract.