Offtake Agreement Definition
An offtake agreement is a contract between a company and a buyer for the purchase of all or part of the company’s production. The agreement typically specifies a minimum and maximum quantity to be purchased, as well as a price and delivery schedule.
Offtake agreements are common in the mining and energy industries, where they are used to secure customers for output from large, capital-intensive projects. They can also be used in other industries, such as agriculture, to ensure a market for a farm’s produce.
