PART 4Pricing and payment

Use of a fixed price

regulation 8 + 8.—(1) Where a pig purchase contract uses a fixed price (whether or not in combination with a variable price), it must do so in accordance with this regulation.

(2) A “fixed price” is a price, set out in the pig purchase contract, that—

regulation 8 2 a + (a)is expressed per quantity of pigs; and

regulation 8 2 b + (b)will be paid by the business purchaser to the qualifying seller for pigs supplied under the contract.

(3) The pig purchase contract may set out more than one fixed price within the duration of the contract.

(4) The pig purchase contract must specify—

regulation 8 4 a + (a)the period within the duration of the contract to which each price relates; and

regulation 8 4 b + (b)the date on which each period begins and ends.

(5) The pig purchase contract must set out a procedure by which the price may be reviewed where exceptional market conditions occur.

(6) The pig purchase contract must set out what constitutes exceptional market conditions for the purpose of the procedure referred to in paragraph (5).

(7) The procedure referred to in paragraph (5) must provide that, where requested by the qualifying seller, the business purchaser must, within 30 days beginning with the date on which the request was made, invite the qualifying seller to enter into a discussion with the purpose of—

regulation 8 7 a + (a)reviewing the price payable under the pig purchase contract at the time of the exceptional market condition occurring; and

regulation 8 7 b + (b)where both of the parties agree, changing that price.