LIVESTOCK TERMS AND CONDITIONS

AFFCO Livestock Presentation Policy - Click to download

CONDITIONS upon which the Company receives live and/or dead stock for holding, slaughtering, storing either for export or delivery within New Zealand.

1. DEFINITIONS

In these Conditions, unless the context otherwise requires: “Company”: means AFFCO NEW ZEALAND LIMITED and its successors and assigns, together with its employees, agents and contractors. “pelt”: includes skin, hide and wool. “stock”: includes sheep, cattle, goats, bobby veal and other animals, the carcasses of the foregoing or any part thereof, meat of any description, all articles of food or other goods derived from such carcasses and pelts.

2. SALES TO THE COMPANY AND PASSING OF PROPERTY AND RISK

2.1 Every sale to the Company of stock whether “in the paddock” or “on the hooks” shall be on the basis that there is included in the sale the meat and pelt of the animal. When the dressed carcass is cut, boned or otherwise processed, the fat, bones, offal and scraps removed shall be the property of the Company.

2.2 Where stock is sold “on the hooks” the property and the risk shall not pass to the Company until after slaughter by the Company. At any time before slaughter the Company may require the supplier at the supplier’s risk and expense to take from the Company delivery of the stock at such place as the Company shall nominate free from any obligation of any kind on the part of the Company.

2.3 Where stock is sold “in the paddock” i.e. leg bought, property and risk passes to the Company when the contract is entered into between the Company and the supplier. Pending delivery to the Company, the supplier shall graze and manage the stock in a proper and husbandlike manner.

3. INSURANCE

3.1 The Company does not insure stock or other goods of whatsoever nature or kind at any time against loss or damage from any cause whatsoever and stock and other goods of whatsoever nature or kind at all times are held at the risk of the owner, until risk passes to the Company in accordance with these Conditions.

4. CLEANLINESS AND WELFARE OF STOCK

4.1 Stock must be received at the Company’s plants in the cleanest possible condition. It is the supplier’s responsibility to ensure that livestock are presented in accordance with the livestock presentation policy. The cost of additional work required to be undertaken by the Company in order to comply with any hygiene standards or Regulations shall be borne by the supplier.

4.2 The Company requires all suppliers to comply with all relevant animal welfare codes and legislation. It is the supplier's responsibility to ensure that all requirements of animal welfare included in the livestock presentation policy are met.

5. LEVIES AND CHARGES

5.1 The Company shall be entitled to charge its suppliers’ accounts with a Company product inspection charge and with all levies or other costs relating either directly or indirectly to the slaughter of stock, treatment or sale of meat or skins and by-products.

6. SECURITIES OVER STOCK

6.1 The supplier must notify the Company at the time of sending stock to the Company’s plants of any security given to any person over any such stock under which the proceeds should be paid to such security holder.

7. REJECTIONS

7.1 The Company reserves the right to reject either alive or dead any stock which in the unfettered opinion of the Company is not up to any standard or requirement. Under no circumstances will the supplier be entitled to have condemned or rejected stock returned. When rejected after slaughter, the carcasses will be taken over by the Company at prices fixed by the Company from time to time.

8. LIMIT OF LIABILITY

8.1 The Company shall not be responsible or liable to the supplier or to any other person whatsoever in contract, tort or otherwise for any loss, decay, deterioration in value, damage to or destruction of stock or other goods of any kind whatsoever whether or not the same be attributable to the negligence or other fault of the Company and the Company’s liability shall not in any event whatsoever exceed the price paid by the Company to the supplier for the stock in respect of which a claim is made.

9. DOCUMENTATION

9.1 When stock is sold “on the hooks” the Company will issue the supplier a copy of a buyer created tax invoice showing particulars of the grades and weights of the stock killed and showing all deductions and levies.

9.2 When stock is “leg bought” the Company will issue the supplier a copy of a buyer created tax invoice showing only the number of head and price paid per head.

10. RIGHT OF SET OFF

10.1 The Company shall be entitled to set off any monies owed to the Company by a supplier against any monies owing by the Company to that supplier.

11. EXOTIC DISEASES

11.1 For the purposes of this clause 11 “exotic disease” means any animal disease not present in New Zealand that is highly contagious in nature and results in Ministry of Primary Industries (or any other public authority of competent jurisdiction) (“MPI”) imposing controls on livestock movements or controls on livestock slaughter or similar measures including without limitation, diseases which are listed by the OIE (the World Organisation for Animal Health) and including without limitation foot and mouth disease, BSE and anthrax.

11.2 Notwithstanding any other provision of these Conditions, if an outbreak of an exotic disease (or a suspected outbreak of an exotic disease) occurs in New Zealand, the provisions of this clause 11 will apply (regardless of the scale or location of the outbreak or suspected outbreak).

11.3 Except where the Company is required by law to allow the entry of stock (including at the direction of MPI) the Company will reject the delivery of all stock (regardless of whether the stock was sold “on the hooks” or “in the paddock”) and no stock (dead or alive) will be allowed to enter any site owned or occupied by the Company (including, but not limited to Company processing plants and adjoining land).

11.4 Except to the extent prohibited by law, the Company will cease processing and will return all stock located at Company sites to the supplier at the supplier’s cost.

11.5 Where stock is rejected or returned by the Company in accordance with clause 11.3 or 11.4, or where the Company is required by law (including the direction of MPI) to destroy stock or is prohibited by law (including the direction of MPI) from selling any stock (whether slaughtered or not), the Company will have no liability to the supplier to pay for the supply of the stock.

11.6 Where MPI directs the Company to hold stock currently located at Company sites, the Company will cease processing and will graze and manage such stock at the supplier’s cost in a proper manner until such time as the stock can be slaughtered, returned to the supplier or otherwise disposed of.