Service Contract Question

I'll try to make this as clear as I can and hopefully someone will be able to help me?

ABC Ltd have a contract with XYZ Ltd to provide a minimum of 20 apples per day for 2 years at a price of 20c per apple. The apples have always been provided on time, in good condition and the price negotiated was and still is under the current market rates. The contract is subject to 3 months written notice by either party.

XYZ have contacted ABC and say that they need to reduce their costs and that they need them to reduce the price of the apples and possibly provide 15 apples per day. The cost of providing 15 as opposed to 20 is no different (and this is stated in the contract).

Where does ABC stand on this?

TIA

Tell XYZ sorry no can do?

Give notice?

Insist on getting notice?

Hold fast to the terms of the contract for those three months?

Unfortunately, the question is impossible to answer because it is not really about legal obligations. It is about negotiation. XYZ want to reduce costs. They will drive their supplier's price down to the point where the supplier is barely hanging on; they will drive it to the point where the supplier feels obliged to exploit migrant labour gangs; that is simply the nature of the beast. XYZ may well feel that this results in cheaper food and that this is all that the public care about. XYZ may well be right.

Hmmmm thanks MOB

Unfortunately ABC aren't in the food business, I was using the term "apples" to illustrate a point. Sorry for not being clearer.

There is a minimum cost associated with providing the service below which ABC can't break even. I've suggested that they offer a small reduction in price and hope for the best.