| 145. | For the purpose of clauses 146 to 154, inclusive, the term ”growers” in relation to a mill means all growers in respect of which such mill is their home mill. |
| 146. | Subject to any provisions herein to the contrary, each mill shall pay growers prices for cane deliveries based on the relative recoverable value of the cane, but Union Co-op may adopt its own system of payment for the growers contracted to deliver cane to its mill. |
| 147. | Notwithstanding anything to the contrary contained in this chapter, the prices payable by a mill to a grower in respect of sugar beet deliveries shall be subject to agreement between the mill concerned and the grower concerned. |
| 148. | Payment for all out of season cane shall be based on actual recoverable value and not relative recoverable value of the cane. |
| 149. | The percentage of the relative recoverable value of the cane delivered by growers to a mill shall be calculated in each year according to the following provisions— |
| (a) | In respect of the cane delivered by each grower, the percentage of the relative recoverable value of the cane crushed each week shall be calculated by adding the actual recoverable value percent of the cane as determined by the Mill Group Board concerned to the mean recoverable value percent cane for all the growers for the entire year concerned (excluding out of season cane deliveries), and deducting therefrom the mean recoverable value percent cane for all the growers during the week in which the cane is crushed; and |
| (b) | until the actual mean recoverable value percent cane for the year is finally established for the mill concerned, the figure shall be estimated by the Mill Group Board concerned; |
| (c) | each Mill Group Board shall advise the Administration Board monthly, at the time of submitting cane and recoverable value estimates, of the estimated mean recoverable value percent cane for the year of all the relative growers and should the Mill Group Board fail to agree on an estimate, the Administration Board shall determine the estimate; |
| (d) | in order to assist with the determination of the estimates as accurately as possible, without derogating from the power conferred on the Mill Group Boards or the Administration Board in terms of paragraphs (a), (b) and (c), a committee comprising one representative of each of the Millers' and Growers' Associations and the South African Sugar Association shall determine independent statistical forecasts and review these at least monthly with a view to making recommendations to each Mill Group Board on the estimates of seasonal mean recoverable value percent cane of the relative mill, and the committee may co-opt additional members as it thinks fit; and |
| (e) | when the actual mean recoverable value percent cane for the year is established for the mill concerned, a final adjustment shall be made to incorporate the actual seasonal mean in place of the estimated seasonal mean for the growers concerned. |
| 150. | At each mill the Mill Group Board shall calculate the relative recoverable value percent cane for each grower on a weekly mean basis and each grower shall be informed by the Mill Group Board concerned at the end of each week of his or her mean actual and relative recoverable value percent cane for the week, as well as of the mean for all growers for the week and the estimated corresponding mean for the year concerned. |
| 151. | Payment by a home mill to a grower for the cane delivered by the grower to a mill shall be made on the basis that— |
| (a) | a provisional payment for cane delivered in each respective mill month shall be made 30 days after the last day of the corresponding calendar month and the amount of each provisional payment shall be not less than the sum of the product obtained by multiplying 90% of the estimated price per ton of recoverable value, as determined in terms of the provisions of Chapter 6 for the immediately preceding month, by the accumulated recoverable value of the cane deliveries of the grower from the commencement of the year up to and including the last day of the mill month in respect of which the payment is due, less the total of all provisional payments previously made to him in respect of the year concerned; |
| (b) | a mill may differentiate between provisional payments made to different categories of growers as determined by the mill in the light of delivery patterns and other factors but in no case shall any provisional payment be based on less than 90% of the estimated price per ton of recoverable value and, in the event of such differentiation, the retention interest values shall be calculated separately for each respective category in terms of clause 152; and |
| (c) | a final payment shall be made on 31 March in each year and the amount of the final payment shall be the sum of the product obtained by multiplying the price per ton of recoverable value, as finally determined in terms of the provisions of Chapter 6 for that year, by the accumulated recoverable value of the cane deliveries of the grower during the year, less the total of all provisional payments previously made to the grower in respect of the year concerned together with retention interest calculated in accordance with the provisions of clause 152. |
| 152. | At each mill there shall be calculated retention interest values per ton of recoverable value, which shall be the total of a calculation for each month during the year in which cane is delivered, divided by the total tons of the recoverable value of the cane delivered by the growers during the year, which calculation shall be made in accordance with the following formula: |
P
(V x W - R x M) x 12 x Z
In which formula the factor—
| (a) | V represents the total cumulative tons of the recoverable value of the cane delivered from the commencement of the year up to and including the last day of the month concerned; |
| (b) | W represents the price per ton of the recoverable value of cane as finally determined for that year in accordance with the provisions of Chapter 6 or, if clause 153 applies, the deemed recoverable value price determined by the South African Sugar Association in terms of that clause in respect of the period concerned; |
| (c) | R represents the total cumulative tons of relative recoverable value of the cane delivered from the commencement of the year up to and including the last day of the month concerned; |
| (d) | M represents the estimated price per ton of the recoverable value of the cane used as the basis in determining the provisional payment for the month concerned, less the retention deducted by the mill; |
| (e) | P represents the period of time in months until the following payment (normally one month, except for the period between the last provisional payment and 31 March); and |
| (f) | Z represents the weighted average of the daily prime bank overdraft rate chargeable by the Sugar Association's bankers from 1 March in the preceding year to 28 February in the year concerned, less one half of a percentage point. |
| 153. | For the purpose of the formula set out in clause 152, if any notional local market price referred to in Chapter 6 is increased or reduced during any year, the South African Sugar Association shall— |
| (a) | estimate and determine the effect that such increase or reduction has on the finally determined recoverable value price for that year and the date from which it will have such effect; and |
| (b) | determine a deemed recoverable value price which excludes this effect and which shall be applied to all deliveries of cane up to the date so determined, and the recoverable value price as finally determined for that year which shall be applied in respect of the period after that date, subject to any directions or adjustments that may be laid down by the South African Sugar Association. |
| 154. | The retention interest payment to each grower shall be calculated by multiplying the tonnage of recoverable value of the cane delivered by him or her by the retention interest value per ton of recoverable value for the grower's home mill. |
