PART 1134—MILK IN THE WESTERN COLORADO MARKETING AREA - GPO · PART 1134—MILK IN THE WESTERN COLORADO MARKETING AREA ... sions in part 1000 of this chapter are ... VerDate 06-MAR-97

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Agricultural Marketing Service, USDA § 1134.3

PART 1132—[RESERVED]

PART 1134—MILK IN THE WESTERNCOLORADO MARKETING AREA

Subpart—Order Regulating Handling

GENERAL PROVISIONS

Sec.1134.1 General provisions.

DEFINITIONS

1134.2 Western Colorado marketing area.1134.3 Route disposition.1134.4 [Reserved]1134.5 Distributing plant.1134.6 Supply plant.1134.7 Pool plant.1134.8 Nonpool plant.1134.9 Handler.1134.10 Producer-handler.1134.11 [Reserved]1134.12 Producer.1134.13 Producer milk.1134.14 Other source milk.1134.15 Fluid milk product.1134.16 Fluid cream product.1134.17 Filled milk.1134.18 Cooperative association.1134.19 [Reserved]1134.20 Commercial food processing estab-

lishment.

HANDLER REPORTS

1134.30 Reports of receipts and utilization.1134.31 Payroll reports.1134.32 Other reports.

CLASSIFICATION OF MILK

1134.40 Classes of utilization.1134.41 Shrinkage.1134.42 Classification of transfers and diver-

sions.1134.43 General classification rules.1134.44 Classification of producer milk.1134.45 Market administrator’s reports and

announcements concerning classifica-tion.

CLASS PRICES

1134.50 Class prices.1134.51 Basic formula price.1134.52 Plant location adjustments for han-

dlers.1134.53 Announcement of class prices.1134.54 Equivalent price.

UNIFORM PRICE

1134.60 Handler’s value of milk for comput-ing uniform price.

1134.61 Computation of uniform price.1134.62 Announcement of uniform price and

butterfat differential.

PAYMENTS FOR MILK

1134.70 Producer-settlement fund.1134.71 Payments to the producer-settle-

ment fund.1134.72 Payments from the producer-settle-

ment fund.1134.73 Payments to producers and to coop-

erative associations.1134.74 Butterfat differential.1134.75 Plant location adjustments for pro-

ducers and on nonpool milk.1134.76 Payments by a handler operating a

partially regulated distributing plant.1134.77 Adjustment of accounts.1134.78 Charges on overdue accounts.

ADMINISTRATIVE ASSESSMENT AND MARKETING

SERVICE DEDUCTION

1134.85 Assessment for order administra-tion.

1134.86 Deduction for marketing services.

AUTHORITY: Secs. 1–19, 48 Stat. 31, asamended; (7 U.S.C. 601–674).

SOURCE: 47 FR 42991, Sept. 30, 1982, unlessotherwise noted.

Subpart—Order RegulatingHandling

GENERAL PROVISIONS

§ 1134.1 General provisions.

The terms, definitions, and provi-sions in part 1000 of this chapter arehereby incorporated by reference andmade a part of this order.

DEFINITIONS

§ 1134.2 Western Colorado marketingarea.

Western Colorado marketing area, here-inafter called the ‘‘marketing area’’,means all the territory within theouter boundaries of the following coun-ties in the State of Colorado:

Delta, Garfield, Mesa, Montrose.

§ 1134.3 Route disposition.

Route disposition means any deliveryto retail or wholesale outlets (includ-ing a delivery by a vendor or a salefrom a plant or plant store) of any fluidmilk product classified as Class I milk,other than a delivery to a pool plant ora delivery in bulk to a nonpool plant.

VerDate 06-MAR-97 14:13 Mar 08, 1997 Jkt 010199 PO 00000 Frm 00775 Fmt 8010 Sfmt 8010 E:\CFR\174015.086 pfrm02

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7 CFR Ch. X (1–1–97 Edition)§ 1134.5

§ 1134.4 [Reserved]

§ 1134.5 Distributing plant.

Distributing plant means any plant atwhich fluid milk products are pasteur-ized or packaged and from which thereis route disposition of Grade A fluidmilk products in the marketing area.

§ 1134.6 Supply plant.

Supply plant means any plant atwhich Grade A milk is received fromdairy farmers and from which fluidmilk products are moved to a pool dis-tributing plant.

§ 1134.7 Pool plant.

Except as provided in paragraph (c)of this section, pool plant means:

(a) Any plant, hereinafter referred toas a ‘‘distributing pool plant’’, in whichduring the month fluid milk productsare processed or packaged and fromwhich:

(1) An amount equal to 50 percent ormore of the total receipts of Grade Amilk (except receipts from distributingpool plants) is disposed of as route dis-position, except filled milk; and

(2) Ten percent or more of such re-ceipts, or 2,000 pounds per day, which-ever is less, are disposed of as routedisposition, except filled milk, in themarketing area.

(b) Any plant, hereinafter referred toas a ‘‘supply pool plant’’ from whichduring the month 50 percent of itsdairy farm supply of Grade A milk ismoved in the form of fluid milk prod-ucts, except filled milk, to distributingpool plants. Any supply plant whichhas qualified as a pool plant in each ofthe months of September through Feb-ruary shall be a pool plant in each ofthe following months of March throughAugust, unless written request fornonpool status for any such month(s) isfurnished in advance to the market ad-ministrator. A plant withdrawn fromsupply pool plant status may not be re-instated for any of the followingmonths of March through August un-less it fulfills the shipping require-ments of this paragraph for suchmonth(s).

(c) The term ‘‘pool plant’’ shall notapply to the following plants:

(1) A producer-handler plant;

(2) Any distributing plant whichwould be subject to the classificationand pricing provisions of another orderissued pursuant to the Act, unless suchplant is qualified as a pool plant pursu-ant to paragraph (a) of this section andthere is more route disposition (exceptfilled milk) in this marketing areathan in the marketing area definedunder such other order;

(3) Any plant qualified pursuant toparagraph (b) of this section for anyportion of March through August, in-clusive, that the milk at such plant issubject to the classification and pric-ing provisions of another order issuedpursuant to the Act; and

(4) Any distributing plant from whichthere is less than an average of 200pounds of route disposition per day, ex-cept filled milk, in the marketing areaduring the month.

§ 1134.8 Nonpool plant.

Nonpool plant means any milk orfilled milk receiving, manufacturing orprocessing plant other than a poolplant. The following categories ofnonpool plants are further defined asfollows:

(a) Other order plant means a plantthat is fully subject to the pricing andpooling provisions of another order is-sued pursuant to the Act.

(b) Producer-handler plant means aplant operated by a producer-handleras defined in any order (including thispart) issued pursuant to the Act.

(c) Partially regulated distributingplant means a nonpool plant that isneither an other order plant nor a pro-ducer-handler plant, from which thereis route disposition in consumer-typepackages or dispenser units in the mar-keting area during the month.

(d) Unregulated supply plant means anonpool plant that is neither an otherorder plant nor a producer-handlerplant from which fluid milk productsare moved during the month to a poolplant.

§ 1134.9 Handler.

Handler means:(a) Any person in his capacity as the

operator of one or more pool plants;


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(b) A cooperative association with re-spect to the milk of its member pro-ducers which it causes to be divertedfor its account pursuant to § 1134.12;

(c) A cooperative association with re-spect to milk of its member producerswhich is delivered from the farm to thepool plant of another handler in a tanktruck owned and operated by the asso-ciation or by a hauler under contractto the association;

(d) Any person who operates a par-tially regulated distributing plant;

(e) A producer-handler;(f) Any person who operates an other

order plant described in § 1134.7(c); and(g) A vendor (any person who does

not operate a plant described in para-graph (a), (d), (e) or (f) of this sectionbut who engages in the business of re-ceiving fluid milk products for resaleand distributes to retail and wholesaleoutlets, via a mobile delivery vehicle,packaged fluid milk products receivedfrom such a plant).

§ 1134.10 Producer-handler.Producer-handler means any person

who is an individual, partnership orcorporation and who meets all the fol-lowing conditions:

(a) Operates a dairy farm(s) fromwhich the milk produced thereon issupplied to a plant operated by him inaccordance with the conditions setforth in paragraph (b) of this section,and provides proof satisfactory to themarket administrator that:

(1) The full maintenance of milk-pro-ducing cows on such farm(s) is his solerisk and under his complete and exclu-sive management and control;

(2) Each such farm is owned or oper-ated by him, at his sole risk, and underhis complete and exclusive manage-ment and control; and

(3) Only he and no other person (ex-cept a member of his immediate fam-ily, or a stockholder in the case of acorporate farm) employed on suchfarm(s) own, fully or partially, eitherthe cows producing the milk on thefarm or the farm on which it is pro-duced;

(b) Operates a plant in which milkapproved by a duly constituted healthauthority for fluid consumption isprocessed or packaged and from whichthe is route disposition during the

month in the marketing area: Provided,That:

(1) No fluid milk products are re-ceived at such plant or by him at anyother location except:

(i) From dairy farm(s) as specified inparagraph (a) of this section; and

(ii) From pool plants or other orderplants in an amount that is not in ex-cess of the lesser of 5,000 pounds or 5percent of his Class I sales during themonth;

(2) Such plant is operated under hiscomplete and exclusive managementand control and at his sole risk, and isnot used during the month to process,package, receive or otherwise handlefluid milk products for any other per-son; and

(3) For the purpose of this section, allfluid milk products disposed of as routedisposition or at stores operated byhim or by any person (including the op-erator of a plant, or a vendor) who con-trols or is controlled by him (e.g., as aninterlocking stockholder) or in whichhe (including, in the case of a corpora-tion, any stockholder therein) has a fi-nancial interest, shall be considered ashaving been received at his plant; andthe utilization for such plant shall in-clude all such route and store disposi-tions; and

(c) Disposes of no other source milk(except that represented by nonfat sol-ids used in the fortification of fluidmilk products) as Class I milk.


§ 1134.12 Producer.(a) Except as provided in paragraph

(b) of this section, producer means anyperson who produces milk in compli-ance with the inspection requirementsfor fluid consumption of a duly con-stituted health authority, whose milkis received at a pool plant or divertedto a nonpool plant that is not a pro-ducer-handler plant within the limitsset forth in paragraphs (a) (1) and (2) ofthis section:

(1) A cooperative association may di-vert for its account the milk of anymember-producer from whom not lessthan 3 days’ production was receivedduring the month at a distributing poolplant. The total quantity of milk so di-verted may not exceed 60 percent in the


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7 CFR Ch. X (1–1–97 Edition)§ 1134.13

months of March, April, May, June,July, and August and 30 percent inother months of its member-producermilk received at pool plants during themonth. Diversions in excess of suchpercentages shall not be consideredproducer milk, and the diverting coop-erative shall specify the dairy farmerswhose milk is ineligible as producermilk. Two or more cooperative associa-tions may have their allowable diver-sions computed on the basis of thecombined deliveries of milk by theirmember producers if each associationhas filed a request in writing with themarket administrator on or before thefirst day of the month the agreement iseffective. Such request shall specifythe basis for assigning overdivertedmilk to the producer-members of eachcooperative association, at a time andin a manner approved by the marketadministrator.

(2) A handler may divert for his ac-count the milk of any producer, otherthan a member of a cooperative asso-ciation which has diverted milk pursu-ant to paragraph (a)(1) of this section,from whom not less than 3 days’ pro-duction was received during the monthat the pool plant. The total quantity ofmilk so diverted may not exceed 60 per-cent in the months of March, April,May, June, July, and August and 30percent in other months of the milk re-ceived at such distributing pool plantduring the month from producers whoare not members of a cooperative asso-ciation which has diverted milk pursu-ant to paragraph (a)(1) of this section.Diversions in excess of such percent-ages shall not be considered producermilk, and the diverting handler, at atime and in a manner approved by themarket administrator, shall specify thedairy farmers whose milk is ineligibleas producer milk.

(3) For the purpose of the require-ments of § 1134.7, milk diverted for theaccount of the operator of a distribut-ing pool plant, except an operator whois also a cooperative association di-verting milk in the same month pursu-ant to paragraph (a)(1) of this section,shall be included in the receipts of thepool plant from which diverted.

(4) For purpose of location adjust-ments pursuant to §§ 1134.52 and 1134.75,milk diverted to a nonpool plant shall

be considered to have been received atthe location of the pool plant fromwhich diverted.

(b) ‘‘Producer’’ shall not include:(1) A producer-handler as defined in

any order (including this part) issuedpursuant to the Act;

(2) Any person with respect to milkproduced by him which is diverted to apool plant from an other order plant ifthe order designates such person as aproducer under that order and suchmilk is allocated to Class II or Class IIIutilization pursuant to§ 1134.44(a)(8)(iii) and the correspondingstep of § 1134.44(b); and

(3) Any person with respect to milkproduced by him which is reported asdiverted to an other order plant if anyportion of such person’s milk so movedis assigned to Class I under the provi-sions of such other order.

§ 1134.13 Producer milk.

Producer milk means all skim milkand butterfat in milk produced by aproducer.

(a) With respect to receipts at a poolplant for which the handler operatingsuch plant is to be responsible pursu-ant to § 1134.60:

(1) Received directly from such pro-ducer; and

(2) Diverted from such pool plant to anonpool plant for the account of theoperator of the pool plant, subject tothe limitations and conditions providedin § 1134.12;

(b) With respect to the additional re-ceipts of a cooperative association:

(1) For which the cooperative asso-ciation is the handler pursuant to§ 1134.9(b), subject to the limitationsand conditions provided in § 1134.12; and

(2) For which the cooperative asso-ciation is the handler pursuant to§ 1134.9(c). If the milk received at a poolplant from a handler described in§ 1134.9(c) is purchased on a basis otherthan farm weights, the amount bywhich the total farm weights of suchmilk exceed the weights on which thepool plant’s purchases are based shallbe producer milk received by the han-dler described in § 1134.9(c) at the loca-tion of the pool plant.


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§ 1134.14 Other source milk.

Other source milk means all skim milkand butterfat contained in or rep-resented by:

(a) Receipts of fluid milk productsand bulk products specified in§ 1134.40(b)(1) from any source otherthan producers, handlers described in§ 1134.9(c), or pool plants;

(b) Receipts in packaged form fromother plants of products specified in§ 1134.40(b)(1);

(c) Products (other than fluid milkproducts, products specified in§ 1134.40(b)(1), and products produced atthe plant during the same month) fromany source which are reprocessed, con-verted into, or combined with anotherproduct in the plant during the month;and

(d) Receipts of any milk product(other than a fluid milk product or aproduct specified in § 1134.40(b)(1)) forwhich the handler fails to establish adisposition.

§ 1134.15 Fluid milk product.

(a) Except as provided in paragraph(b) of this section fluid milk productmeans any milk products in fluid orfrozen form containing less than 9 per-cent butterfat, that are in bulk or arepackaged, distributed and intended tobe used as beverages. Such products in-clude, but are not limited to: Milk,skim milk, lowfat milk, milk drinks,buttermilk, and filled milk, includingany such beverage products that areflavored, cultured, modified with addednonfat milk solids, sterilized, con-centrated (to not more than 50 percenttotal milk solids), or reconstituted.

(b) The term fluid milk product shallnot include:

(1) Plain or sweetened evaporatedmilk, plain or sweetened evaporatedskim milk, sweetened condensed milkor skim milk, formulas especially pre-pared for infant feeding or dietary usethat are packaged in hermeticallysealed containers, any product thatcontains by weight less than 6.5 per-cent nonfat milk solids, and whey; and

(2) The quantity of skim milk in anymodified product specified in para-graph (a) of this section that is in ex-cess of the quantity of skim milk in anequal volume of an unmodified product

of the same nature and butterfat con-tent.

[58 FR 27893, May 11, 1993]

§ 1134.16 Fluid cream product.Fluid cream product means cream

(other than plastic cream or frozencream), including sterilized cream, or amixture of cream and milk or skimmilk containing 9 percent or more but-terfat, with or without the addition ofother ingredients.

[58 FR 27894, May 11, 1993]

§ 1134.17 Filled milk.Filled milk means any combination of

nonmilk fat (or oil) with skim milk(whether fresh, cultured, reconstituted,or modified by the addition of nonfatmilk solids), with or without milkfat,so that the product (including stabiliz-ers, emulsifiers, or flavoring) resemblesmilk or any other fluid milk product,and contains less than 6 percentnonmilk fat (or oil).

§ 1134.18 Cooperative association.Cooperative association means any co-

operative marketing association ofproducers which the Secretary deter-mines, after application by the associa-tion:

(a) To be qualified under the provi-sions of the Act of Congress of Feb-ruary 18, 1922, as amended, known asthe ‘‘Capper-Volstead Act’’;

(b) To have full authority in the saleof milk of its members and to be en-gaged in making collective sales of, ormarketing milk or its products for itsmembers; and (c) Has its entire activi-ties under the control of its members.


§ 1134.20 Commercial food processingestablishment.

Commercial food processing establish-ment means any facility other than amilk or filled milk plant, to whichbulk fluid milk products and bulk fluidcream products are disposed of, or pro-ducer milk is diverted, that uses suchreceipts as ingredients in food productsand has no disposition of fluid milkproducts or fluid cream products otherthan those received in consumer-typepackages. Producer milk diverted to


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7 CFR Ch. X (1–1–97 Edition)§ 1134.30

commercial food processing establish-ments shall be subject to the same pro-visions relating to diversions to plants,including but not limited to, provisionsin §§ 1134.12, 1134.13, 1134.41 and 1134.52.

[58 FR 27894, May 11, 1993]

HANDLER REPORTS

§ 1134.30 Reports of receipts and utili-zation.

On or before the seventh day afterthe end of each month, each handlershall report for the month to the mar-ket administrator, in the detail and onthe forms prescribed by the market ad-ministrator, as follows:

(a) Each handler, with respect toeach of his pool plants, shall report thequantities of skim milk and butterfatcontained in or represented by:

(1) Receipts of producer milk, includ-ing producer milk diverted by the han-dler from the pool plant to otherplants;

(2) Receipts of milk from handlers de-scribed in § 1134.9(c);

(3) Receipts of fluid milk productsand bulk fluid cream products fromother pool plants;

(4) Receipts of other source milk;(5) Inventories at the beginning and

end of the month of fluid milk productsand products specified in § 1134.40(b)(1);and

(6) The utilization or disposition ofall milk, filled milk, and milk productsrequired to be reported pursuant tothis paragraph.

(b) Each handler operating a par-tially regulated distributing plantshall report with respect to such plantin the same manner as prescribed forreports required by paragraph (a) ofthis section. Receipts of milk thatwould have been producer milk if theplant had been fully regulated shall bereported in lieu of producer milk. Suchreport shall show also the quantity ofany reconstituted skim milk in routedisposition in the marketing area.

(c) Each handler described in§ 1134.9(b) and (c) shall report:

(1) The quantities of all skim milkand butterfat contained in receipts ofmilk from producers; and

(2) The utilization or disposition ofall such receipts.

(d) Each handler not specified inparagraphs (a) through (c) of this sec-tion shall report with respect to his re-ceipts and utilization of milk, filledmilk, and milk products in such man-ner as the market administrator mayprescribe.

§ 1134.31 Payroll reports.(a) On or before the 23rd day after the

end of each month, each handler de-scribed in § 1134.9(a), (b), and (c) shallreport to the market administrator hisproducer payroll for such month, in thedetail prescribed by the market admin-istrator, showing for each producer:

(1) His name and address;(2) The total pounds of milk received

from such producer;(3) The average butterfat content of

such milk; and(4) The price per hundredweight, the

gross amount due, the amount and na-ture of any deductions, and the netamount paid.

(b) Each handler operating a par-tially regulated distributing plant whoelects to make payment pursuant to§ 1134.76(b) shall report for each dairyfarmer who would have been a producerif the plant had been fully regulated inthe same manner as prescribed for re-ports required by paragraph (a) of thissection.

§ 1134.32 Other reports.(a) On or before the seventh day after

the end of each month, each handlerdescribed in § 1134.9(a) and (b) who di-verted milk to nonpool plants shall re-port for the month to the market ad-ministrator, in the detail and on theforms prescribed by the market admin-istrator, as follows:

(1) The name of the plant to which di-verted;

(2) The name of the individual dairyfarmers so diverted;

(3) The pounds of skim milk and but-terfat from each dairy farmer con-tained in the milk so diverted; and

(4) The number of days milk of thedairy farmer was received at a poolplant of the diverting order.

(b) In addition to the reports requiredpursuant to §§ 1134.30 and 1134.31 andparagraph (a) of this section, each han-dler shall report such other informa-tion as the market administrator


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deems necessary to verify or establishsuch handler’s obligation under theorder.

CLASSIFICATION OF MILK

§ 1134.40 Classes of utilization.Except as provided in § 1134.42, all

skim milk and butterfat required to bereported by a handler pursuant to§ 1134.30 shall be classified as follows:

(a) Class I milk. Class I milk shall beall skim milk and butterfat:

(1) Disposed of in the form of a fluidmilk product, except as otherwise pro-vided in paragraphs (b) and (c) of thissection;

(2) In packaged fluid milk products ininventory at the end of the month; and

(3) Not specifically accounted for asClass II or Class III milk.

(b) Class II milk. Class II milk shall beall skim milk and butterfat:

(1) Disposed of in the form of a fluidcream product or any product contain-ing artificial fat, fat substitutes, or 6percent or more nonmilk fat (or oil)that resembles a fluid cream product,except as otherwise provided in para-graph (c) of this section;

(2) In packaged inventory at the endof the month of the products specifiedin paragraph (b)(1) of this section andin bulk concentrated fluid milk prod-ucts in inventory at the end of themonth;

(3) In bulk fluid milk products andbulk fluid cream products disposed ofor diverted to a commercial food proc-essor if the market administrator ispermitted to audit the records of thecommercial food processing establish-ment for the purpose of verification.Otherwise, such uses shall be Class I;

(4) Used to produce:(i) Cottage cheese, lowfat cottage

cheese, dry curd cottage cheese, ricottacheese, pot cheese, Creole cheese, andany similar soft, high-moisture cheeseresembling cottage cheese in form oruse;

(ii) Milkshake and ice milk mixes (orbases), frozen desserts, and frozen des-sert mixes distributed in one-quartcontainers or larger and intended to beused in soft or semi-solid form;

(iii) Aerated cream, frozen cream,sour cream and sour half-and-half, sourcream mixtures containing nonmilk

items, yogurt and any other semi-solidproduct resembling a Class II product;

(iv) Eggnog, custards, puddings, pan-cake mixes, buttermilk biscuit mixes,coatings, batter, and similar products;

(v) Formulas especially prepared forinfant feeding or dietary use (meal re-placement) that are packaged in her-metically sealed containers;

(vi) Candy, soup, bakery products andother prepared foods which are proc-essed for general distribution to thepublic, and intermediate products, in-cluding sweetened condensed milk, tobe used in processing such preparedfood products; and

(vii) Any product not otherwise spec-ified in this section.

(c) Class III milk. Class III milk shallbe all skim milk and butterfat:

(1) Used to produce:(i) Cream cheese and other

spreadable cheeses, and hard cheeses oftypes that may be shredded, grated, orcrumbled, and are not included in para-graph (b)(4)(i) of this section;

(ii) Butter, plastic cream, anhydrousmilkfat and butteroil;

(iii) Any milk product in dry form;(iv) Evaporated or sweetened con-

densed milk in a consumer-type pack-age and evaporated or sweetened con-densed skim milk in a consumer-typepackage; and

(2) In inventory at the end of themonth of unconcentrated fluid milkproducts in bulk form and productsspecified in paragraph (b)(1) of this sec-tion in bulk form;

(3) In fluid milk products, productsspecified in paragraph (b)(1) of this sec-tion, and products processed by the dis-posing handler that are specified inparagraphs (b)(4) (i) through (iv) of thissection, that are disposed of by a han-dler for animal feed;

(4) In fluid milk products, productsspecified in paragraph (b)(1) of this sec-tion, and products processed by the dis-posing handler that are specified inparagraphs (b)(4) (i) through (iv) of thissection, that are dumped by a handler.The market administrator may requirenotification by the handler of suchdumping in advance for the purpose ofhaving the opportunity to verify suchdisposition. In any case, classificationunder this paragraph requires a han-dler to maintain adequate records of


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7 CFR Ch. X (1–1–97 Edition)§ 1134.41

such use. If advance notification ofsuch dumping is not possible, or if themarket administrator so requires, thehandler must notify the market admin-istrator on the next business day fol-lowing such use;

(5) In fluid milk products and prod-ucts specified in paragraph (b)(1) ofthis section that are destroyed or lostby a handler in a vehicular accident,flood, fire, or in a similar occurrencebeyond the handler’s control, to the ex-tent that the quantities destroyed orlost can be verified from records satis-factory to the market administrator;

(6) In skim milk in any modified fluidmilk product or in any product speci-fied in paragraph (b)(1) of this sectionthat is in excess of the quantity ofskim milk in such product that was in-cluded within the fluid milk productdefinition pursuant to § 1134.15 and thefluid cream product definition pursu-ant to § 1134.16; and

(7) In shrinkage assigned pursuant to§ 1134.41(a) to the receipts specified in§ 1134.41(a)(2) and in shrinkage specifiedin § 1134.41 (b) and (c).

[58 FR 27894, May 11, 1993]

§ 1134.41 Shrinkage.

For purposes of classifying all skimmilk and butterfat to be reported by ahandler pursuant to § 1134.30, the mar-ket administrator shall determine thefollowing:

(a) The pro rata assignment ofshrinkage of skim milk and butterfat,respectively, at each pool plant to therespective quantities of skim milk andbutterfat:

(1) In the receipts specified in para-graphs (b) (1) through (6) of this sec-tion, the maximum pounds computedpursuant to such paragraph divided by0.02; and

(2) In other source milk not specifiedin paragraphs (b)(1) through (6) of thissection which was received in the formof a bulk fluid milk product or a bulkfluid cream product;

(b) The shrinkage of skim milk andbutterfat, respectively, that is not inexcess of:

(1) Two percent of the skim milk andbutterfat, respectively, in producermilk (excluding milk diverted by theplant operator to another plant);

(2) Plus 1.5 percent of the skim milkand butterfat, respectively, in milk re-ceived from a handler described in§ 1134.9(c), except that if the operator ofthe plant to which the milk is deliv-ered purchases such milk on the basisof weights determined from its meas-urement at the farm and butterfattests determined from farm bulk tanksamples, the applicable percentageunder this subparagraph shall be 2 per-cent;

(3) Plus 0.5 percent of the skim milkand butterfat, respectively, in producermilk diverted from such plant by theplant operator to another plant, exceptthat if the operator of the plant towhich the milk is delivered purchasessuch milk on the basis of weights de-termined from its measurement at thefarm and butterfat tests determinedfrom farm bulk tank samples, the ap-plicable percentage under this subpara-graph shall be zero;

(4) Plus 1.5 percent of the skim milkand butterfat, respectively, in bulkfluid milk products received by trans-fer from other pool plants;

(5) Plus 1.5 percent of the skim milkand butterfat, respectively, in bulkfluid milk products received by trans-fer from other order plants, excludingthe quantity for which Class II or ClassIII classification is requested by theoperators of both plants;

(6) Plus 1.5 percent of the skim milkand butterfat, respectively, in bulkfluid milk products received from un-regulated supply plants, excluding thequantity for which Class II or Class IIIclassification is requested by the han-dler; and

(7) Less 1.5 percent of the skim milkand butterfat, respectively, in bulkfluid milk products transferred toother plants that is not in excess of therespective amounts of skim milk andbutterfat to which percentages are ap-plied in paragraphs (b)(1), (2), (4), (5),and (6) of this section; and

(c) The quantity of skim milk andbutterfat, respectively, in shrinkage ofmilk from producers for which a coop-erative association is the handler pur-suant to § 1134.9 (b) or (c), but not in ex-cess of 0.5 percent of the skim milk andbutterfat, respectively, in such milk. Ifthe operator of the plant to which themilk is delivered purchases such milk


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on the basis of weights determinedfrom its measurement at the farm andbutterfat tests determine from farmbulk tank samples, the applicable per-centage under this paragraph for thecooperative association shall be zero.

§ 1134.42 Classification of transfersand diversions.

(a) Transfers to pool plants. Except asprovided in paragraph (e) of this sec-tion, skim milk or butterfat trans-ferred in the form of a fluid milk prod-uct or a bulk fluid cream product froma pool plant to another pool plant shallbe classified as Class I milk unless bothhandlers request the same classifica-tion in another class. In either case,the classification of such transfersshall be subject to the following condi-tions:

(1) The skim milk or butterfat classi-fied in each class shall be limited tothe amount of skim milk and butter-fat, respectively, remaining in suchclass at the transferee-plant after thecomputations pursuant to§ 1134.44(a)(12) and the correspondingstep of § 1134.44(b). The amount of skimmilk or butterfat classified in eachclass shall include the assigned utiliza-tion of skim milk or butterfat in trans-fers of concentrated fluid milk prod-ucts;

(2) If the transferor-plant receivedduring the month other source milk tobe allocated pursuant to § 1134.44(a)(7)or the corresponding step of § 1134.44(b),the skim milk or butterfat so trans-ferred shall be classified so as to allo-cate the least possible Class I utiliza-tion to such other source milk; and

(3) If the transferor-handler receivedduring the month other source milk tobe allocated pursuant to § 1134.44(a) (11)or (12) or the corresponding steps of§ 1134.44(b), the skim milk or butterfatso transferred up to the total of theskim milk and butterfat, respectively,in such receipts of other source milk,shall not be classified as Class I milkto a greater extent than would be thecase if the other source milk had beenreceived at the transferee-plant.

(b) Transfers and diversions to otherorder plants. Skim milk or butterfattransferred or diverted in the form of afluid milk product or a bulk fluidcream product from a pool plant to an

other order plant shall be classified inthe following manner. Such classifica-tion shall apply only to the skim milkor butterfat that is in excess of any re-ceipts at the pool plant from the otherorder plant of skim milk and butterfat,respectively, in fluid milk products andbulk fluid cream products, respec-tively, that are in the same category asdescribed in paragraph (b) (1), (2), or (3)of this section:

(1) If transferred as packaged fluidmilk products, classification shall bein the classes to which allocated as afluid milk product under the otherorder;

(2) If transferred in bulk form, classi-fication shall be in the classes to whichallocated under the other order (includ-ing allocation under the conditions setforth in paragraph (b)(3) of this sec-tion);

(3) If the operators of both plants sorequest in their reports of receipts andutilization filed with their respectivemarket administrators, transfers or di-versions in bulk form shall be classi-fied as Class II or Class III milk to theextent of such utilization available forsuch classification pursuant to the al-location provisions of the other order;

(4) If information concerning theclasses to which such transfers or di-versions were allocated under the otherorder is not available to the market ad-ministrator for the purpose of estab-lishing classification under this para-graph, classification shall be as Class I,subject to adjustment when such infor-mation is available;

(5) For purposes of this paragraph, ifthe other order provides for a differentnumber of classes of utilization than isprovided for under this part, skim milkor butterfat allocated to a class con-sisting primarily of fluid milk productsshall be classified as Class I milk, andskim milk or butterfat allocated to theother classes shall be classified asClass III milk; and

(6) If the form in which any fluidmilk product that is transferred to another order plant is not defined as afluid milk product under such otherorder, classification under this para-graph shall be in accordance with theprovisions of § 1134.40.

(c) Transfers to producer-handlers.Skim milk or butterfat transferred in


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7 CFR Ch. X (1–1–97 Edition)§ 1134.42

the following forms from a pool plantto a producer-handler under this or anyother Federal order shall be classified:

(1) As Class I milk, if transferred inthe form of a fluid milk product; and

(2) In accordance with the utilizationassigned to it by the market adminis-trator, if transferred in the form of abulk fluid cream product. For this pur-pose, the transferee’s utilization ofskim milk and butterfat in each class,in series beginning with Class III, shallbe assigned to the extent possible tohis receipts of skim milk and butterfat,respectively, in bulk fluid cream prod-ucts, pro rata to each source.

(d) Transfers and diversions to othernonpool plants. Skim milk or butterfattransferred or diverted in the followingforms from a pool plant to a nonpoolplant that is not an other order plantor a producer-handler plant shall beclassified:

(1) As Class I milk, if transferred inthe form of a packaged fluid milk prod-uct; and

(2) As Class I milk, if transferred ordiverted in the form of a bulk fluidmilk product or a bulk fluid creamproduct, unless the following condi-tions apply:

(i) If the conditions described inparagraphs (d)(2)(i) (a) and (b) of thissection are met, transfers or diversionsin bulk form shall be classified on thebasis of the assignment of the nonpoolplant’s utilization to its receipts as setforth in paragraphs (d)(2) (ii) through(viii) of this section:

(a) The transferor-handler or diver-tor-handler claims such classificationin his report of receipts and utilizationfiled pursuant to § 1134.30 for the monthwithin which such transaction oc-curred; and

(b) The nonpool plant operator main-tains books and records showing theutilization of all skim milk and butter-fat received at such plant which aremade available for verification pur-poses if requested by the market ad-ministrator;

(ii) Route disposition in the market-ing area of each Federal milk orderfrom the nonpool plant and transfers ofpackaged fluid milk products fromsuch nonpool plant to plants fully reg-ulated thereunder shall be assigned to

the extent possible in the following se-quence:

(a) Pro rata to receipts of packagedfluid milk products at such nonpoolplant from pool plants;

(b) Pro rata to any remaining unas-signed receipts of packaged fluid milkproducts at such nonpool plant fromother order plants;

(c) Pro rata to receipts of bulk fluidmilk products at such nonpool plantfrom pool plants; and

(d) Pro rata to any remaining unas-signed receipts of bulk fluid milk prod-ucts at such nonpool plant from otherorder plants;

(iii) Any remaining Class I disposi-tion of packaged fluid milk productsfrom the nonpool plant shall be as-signed to the extent possible pro ratato any remaining unassigned receiptsof packaged fluid milk products atsuch nonpool plant from pool plantsand other order plants;

(iv) Transfers of bulk fluid milk prod-ucts from the nonpool plant to a plantfully regulated under any Federal milkorder, to the extent that such transfersto the regulated plant exceed receiptsof fluid milk products from such plantand are allocated to Class I at thetransferee-plant, shall be assigned tothe extent possible in the following se-quence:

(a) Pro rata to receipts of fluid milkproducts at such nonpool plant frompool plants; and

(b) Pro rata to any remaining unas-signed receipts of fluid milk productsat such nonpool plant from other orderplants;

(v) Any remaining unassigned Class Idisposition from the nonpool plantshall be assigned to the extent possiblein the following sequence:

(a) To such nonpool plant’s receiptsfrom dairy farmers who the market ad-ministrator determines constitute reg-ular sources of Grade A milk for suchnonpool plant; and

(b) To such nonpool plant’s receiptsof Grade A milk from plants not fullyregulated under any Federal milk orderwhich the market administrator deter-mines constitute regular sources ofGrade A milk for such nonpool plant;

(vi) Any remaining unassigned re-ceipts of bulk fluid milk products atthe nonpool plant from pool plants and


785


other order plants shall be assigned,pro rata among such plants, to the ex-tent possible first to any remainingClass I utilization, then to Class II uti-lization, and then to Class III utiliza-tion at such nonpool plant;

(vii) Receipts of bulk fluid creamproducts at the nonpool plant frompool plants and other order plants shallbe assigned, pro rata among suchplants, to the extent possible first toany remaining Class II utilization,then to any remaining Class III utiliza-tion, and then to Class I utilization atsuch nonpool plant; and

(viii) In determining the nonpoolplant’s utilization for purposes of thissubparagraph, any fluid milk productsand bulk fluid cream products trans-ferred from such nonpool plant to aplant not fully regulated under anyFederal milk order shall be classifiedon the basis of the second plant’s utili-zation using the same assignment pri-orities at the second plant that are setforth in this paragraph.

(e) Transfers by a cooperative associa-tion to pool plants. Skim milk and but-terfat transferred in the form of bulkmilk by a handler described in§ 1134.9(c) and from a pool plant oper-ated by a cooperative association toanother handler’s pool plant shall beclassified pursuant to § 1134.44 pro ratawith producer milk received at thetransferee-plant and the value thereofat the class prices shall be included inhis value of milk pursuant to § 1134.60.

[47 FR 42991, Sept. 30, 1982, as amended at 58FR 27894, May 11, 1993]

§ 1134.43 General classification rules.In determining the classification of

producer milk pursuant to § 1134.44, thefollowing rules shall apply:

(a) Each month the market adminis-trator shall correct for mathematicaland other obvious errors all reportsfiled pursuant to § 1134.30 and shallcompute separately for each pool plant,and for each cooperative associationwith respect to milk for which it is thehandler pursuant to § 1134.9 (b) or (c)that was not received at a pool plant,the pounds of skim milk and butterfat,respectively, in each class in accord-ance with §§ 1134.40, 1134.41, and 1134.42.The combined pounds of skim milk andbutterfat so determined in each class

for a handler described in § 1134.9 (b) or(c) shall be such handler’s classifica-tion of producer milk;

(b) If any of the water contained inthe milk from which a product is madeis removed before the product is uti-lized or disposed of by a handler, thepounds of skim milk in such productthat are to be considered under thispart as used or disposed of by the han-dler shall be an amount equivalent tothe nonfat milk solids contained insuch product plus all of the wateroriginally associated with such solids;and

(c) The classification of producermilk for which a cooperative associa-tion is the handler pursuant to § 1134.9(b) or (c) shall be determined sepa-rately from the operations of any poolplant operated by such cooperative as-sociation.

(d) Skim milk and butterfat con-tained in receipts of bulk concentratedfluid milk and nonfluid milk productsthat are reconstituted for fluid useshall be assigned to Class I use, up tothe reconstituted portion of labeled re-constituted fluid milk products, on apro rata basis (except for any Class Iuse of specific concentrated receiptsthat is established by the handler)prior to any assignments under§ 1134.44. Any remaining skim milk andbutterfat in concentrated receipts shallbe assigned to uses under § 1134.44 on apro rata basis, unless a specific use ofsuch receipts is established by the han-dler.


§ 1134.44 Classification of producermilk.

For each month the market adminis-trator shall determine for each handlerdescribed in § 1134.9(a) for each of hispool plants separately the classifica-tion of producer milk and milk subjectto the provisions of § 1134.42(e) by allo-cating the handler’s receipts of skimmilk and butterfat to his utilization asfollows:

(a) Skim milk shall be allocated inthe following manner:

(1) Subtract from the total pounds ofskim milk in Class III the pounds ofskim milk in shrinkage specified in§ 1134.41(b);


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7 CFR Ch. X (1–1–97 Edition)§ 1134.44

(2) Subtract from the total pounds ofskim milk in Class I the pounds ofskim milk in:

(i) Receipts of packaged fluid milkproducts from an unregulated supplyplant to the extent that an equivalentamount of skim milk disposed of tosuch plant by handlers fully regulatedunder any Federal milk order is classi-fied and priced as Class I milk and isnot used as an offset for any other pay-ment obligation under any order;

(ii) Packaged fluid milk products ininventory at the beginning of themonth. This paragraph shall apply onlyif the pool plant was subject to the pro-visions of this paragraph or comparableprovisions of another Federal milkorder in the immediately precedingmonth;

(3) Subtract from the pounds of skimmilk remaining in each class thepounds of skim milk in fluid milk prod-ucts received in packaged form from another order plant, except that to besubtracted pursuant to paragraph(a)(7)(vi) of this section, as follows:

(i) From Class III milk, the lesser ofthe pounds remaining or 2 percent ofsuch receipts; and

(ii) From Class I milk, the remainderof such receipts;

(4) Subtract from the pounds of skimmilk in Class II the pounds of skimmilk in products specified in§ 1134.40(b)(1) that were received inpackaged form from other plants, butnot in excess of the pounds of skimmilk remaining in Class II;

(5) Subtract from the remainingpounds of skim milk in Class II thepounds of skim milk in products speci-fied in § 1134.40(b)(1) in packaged formand in bulk concentrated fluid milk

products that were in inventory at thebeginning of the month, but not in ex-cess of the pounds of skim milk re-maining in Class II. This paragraphshall apply only if the pool plant wassubject to the provisions of this para-graph or comparable provisions of an-other Federal milk order in the imme-diately preceding month;

(6) Subtract from the remainingpounds of skim milk in Class II thepounds of skim milk in bulk con-centrated fluid milk products and inother source milk (except other sourcemilk received in the form of anunconcentrated fluid milk product or afluid cream product) that is used toproduce, or added to any product speci-fied in § 1134.40(b) (excluding the quan-tity of such skim milk that was classi-fied as Class III milk pursuant to§ 1134.40(c)(6)), but not in excess of thepounds of skim milk remaining inClass II.

(7) Subtract in the order specifiedbelow from the pounds of skim milk re-maining in each class, in series begin-ning with Class III, the pounds of skimmilk in each of the following:

(i) Bulk concentrated fluid milkproducts and other source milk (exceptother source milk received in the formof an unconcentrated fluid milk prod-uct) and, if paragraph (a)(5) of this sec-tion applies, packaged inventory at thebeginning of the month of productsspecified in § 1134.40(b)(1) that was notsubtracted pursuant to paragraphs(a)(4), (a)(5) and (a)(6) of this section;

(ii) Receipts of fluid milk products(except filled milk) for which Grade Acertification is not established;

(iii) Receipts of fluid milk productsfrom unidentified sources;


787


(iv) Receipts of fluid milk productsfrom a producer-handler as definedunder this or any other Federal milkorder;

(v) Receipts of reconstituted skimmilk in filled milk from an unregu-lated supply plant that were not sub-tracted pursuant to paragraph (a)(2)(i)of this section; and

(vi) Receipts of reconstituted skimmilk in filled milk from an other orderplant that is regulated under any Fed-eral milk order providing for individ-ual-handler pooling, to the extent thatreconstituted skim milk is allocated toClass I at the transferor-plant;

(8) Subtract in the order specifiedbelow from the pounds of skim milk re-maining in Class II and Class III, in se-quence beginning with Class III:

(i) The pounds of skim milk in re-ceipts of fluid milk products from anunregulated supply plant that were notsubtracted pursuant to paragraphs(a)(2)(i) and (7)(v) of this section forwhich the handler requests a classifica-tion other than Class I, but not in ex-cess of the pounds of skim milk re-maining in Class II and Class III com-bined;

(ii) The pounds of skim milk in re-ceipts of fluid milk products from anunregulated supply plant that were notsubtracted pursuant to paragraphs(a)(2)(i), (7)(v), and (8)(i) of this sectionwhich are in excess of the pounds ofskim milk determined pursuant toparagraphs (a)(8)(ii)(a) through (c) ofthis section. Should the pounds of skimmilk to be subtracted from Class II andClass III combined exceed the poundsof skim milk remaining in such class-es, the pounds of skim milk in Class IIand Class III combined shall be in-creased (increasing as necessary ClassIII and then Class II to the extent ofavailable utilization in such classes atthe nearest other pool plant of the han-dler, and then at each successivelymore distant pool plant of the handler)by an amount equal to such excessquantity to be subtracted, and thepounds of skim milk in Class I shall bedecreased by a like amount. In suchcase, the pounds of skim milk remain-ing in each class at this allocation stepat the handler’s other pool plants shallbe adjusted in the reverse direction bya like amount:

(a) Multiply by 1.25 the sum of thepounds of skim milk remaining inClass I at this allocation step at allpool plants of the handler (excludingany duplication of Class I utilizationresulting from reported Class I trans-fers between pool plants of the han-dler);

(b) Subtract from the above resultthe sum of the pounds of skim milk inreceipts at all pool plants of the han-dler of producer milk, milk subject tothe provisions of § 1134.42(e), fluid milkproducts from pool plants of other han-dlers, and bulk fluid milk productsfrom other order plants that were notsubtracted pursuant to paragraph(a)(7)(vi) of this section; and

(c) Multiply any plus quantity result-ing above by the percentage that thereceipts of skim milk in fluid milkproducts from unregulated supplyplants that remain at this pool plant isof all such receipts remaining at thisallocation step at all pool plants of thehandler; and

(iii) The pounds of skim milk in re-ceipts of bulk fluid milk products fromanother order plant that are in excessof bulk fluid milk products transferredor diverted to such plant and that werenot subtracted pursuant to paragraph(a)(7)(vi) of this section, if Class II orClass III classification is requested bythe operator of the other order plantand the handler, but not in excess ofthe pounds of skim milk remaining inClass II and Class III combined;

(9) Subtract from the pounds of skimmilk remaining in each class, in seriesbeginning with Class III, the pounds ofskim milk in fluid milk products andproducts specified in § 1134.40(b)(1) ininventory at the beginning of themonth that were not subtracted pursu-ant to paragraphs (a)(2)(ii), (a)(5) and(a)(7)(i) of this section;

(10) Add to the remaining pounds ofskim milk in Class III the pounds ofskim milk subtracted pursuant toparagraph (a)(1) of this section;

(11) Subject to the provisions of para-graphs (a)(11) (i) and (ii) of this section,subtract from the pounds of skim milkremaining in each class at the plant,pro rata to the total pounds of skimmilk remaining in Class I and in Class


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7 CFR Ch. X (1–1–97 Edition)§ 1134.44

II and Class III combined at this alloca-tion step at all pool plants of the han-dler (excluding any duplication of utili-zation in each class resulting fromtransfers between pool plants of thehandler), with the quantity prorated toClass II and Class III combined beingsubtracted first from Class III and thenfrom Class II, the pounds of skim milkin receipts of fluid milk products froman unregulated supply plant that werenot subtracted pursuant to paragraphs(a)(2)(i), (7)(v), and (8)(i) and (ii) of thissection and that were not offset bytransfers or diversions of fluid milkproducts to the same unregulated sup-ply plant from which fluid milk prod-ucts to be allocated at this step werereceived:

(i) Should the pounds of skim milk tobe subtracted from Class II and ClassIII combined pursuant to this subpara-graph exceed the pounds of skim milkremaining in such classes, the poundsof skim milk in Class II and Class IIIcombined shall be increased (increasingas necessary Class III and then Class IIto the extent of available utilization insuch classes at the nearest other poolplant of the handler, and then at eachsuccessively more distant pool plant ofthe handler) by an amount equal tosuch excess quantity to be subtracted,and the pounds of skim milk in Class Ishall be decreased by a like amount. Insuch case, the pounds of skim milk re-maining in each class at this allocationstep at the handler’s other pool plantsshall be adjusted in the reverse direc-tion by a like amount; and

(ii) Should the pounds of skim milkto be subtracted from Class I pursuantto this subparagraph exceed the poundsof skim milk remaining in such class,the pounds of skim milk in Class Ishall be increased by an amount equalto excess quantity to be subtracted,and the pounds of skim milk in Class IIand Class III combined shall be de-creased by a like amount (decreasingas necessary Class III and then ClassII). In such case, the pounds of skimmilk remaining in each class at this al-location step at the handler’s otherpool plants shall be adjusted in the re-verse direction by a like amount, be-ginning with the nearest plant atwhich Class I utilization is available;

(12) Subtract in the manner specifiedbelow from the pounds of skim milk re-maining in each class the pounds ofskim milk in receipts of bulk fluidmilk products from an other orderplant that are in excess of bulk fluidmilk products transferred or divertedto such plant and that were not sub-tracted pursuant to paragraphs(a)(7)(vi) and (8)(iii) of this section:

(i) Subject to the provisions of para-graphs (a)(12) (ii), (iii), and (iv) of thissection, such subtraction shall be prorata to the pounds of skim milk inClass I and in Class II and Class IIIcombined, with the quantity proratedto Class II and Class III combined beingsubtracted first from Class III and thenfrom Class II, with respect to which-ever of the following quantities rep-resents the lower proportion of Class Imilk:

(a) The estimated utilization of skimmilk of all handlers in each class as an-nounced for the month pursuant to§ 1134.45(a); or

(b) The total pounds of skim milk re-maining in each class at this allocationstep at all pool plants of the handler(excluding any duplication of utiliza-tion in each class resulting from trans-fers between pool plants of the han-dler);

(ii) Should the proration pursuant toparagraph (a)(12)(i) of this section re-sult in the total pounds of skim milkat all pool plants of the handler thatare to be subtracted at this allocationstep from Class II and Class III com-bined exceeding the pounds of skimmilk remaining in Class II and Class IIIat all such plants, the pounds of suchexcess shall be subtracted from thepounds of skim milk remaining inClass I after such proration at the poolplants at which such other source milkwas received;

(iii) Except as provided in paragraph(a)(12)(ii) of this section, should thecomputations pursuant to paragraph(a)(12) (i) or (ii) of this section result ina quantity of skim milk to be sub-tracted from Class II and Class III com-bined that exceeds the pounds of skimmilk remaining in such classes, thepounds of skim milk in Class II andClass III combined shall be increased(increasing as necessary Class III andthen Class II to the extent of available


789


utilization in such classes at the near-est other pool plant of the handler, andthen at each successively more distantpool plant of the handler) by anamount equal to such excess quantityto be subtracted, and the pounds ofskim milk in Class I shall be decreasedby a like amount. In such case, thepounds of skim milk remaining in eachclass at this allocation step at the han-dler’s other pool plants shall be ad-justed in the reverse direction by a likeamount; and

(iv) Except as provided in paragraph(a)(12)(ii) of this section, should thecomputations pursuant to paragraph(a)(12)(i) or (ii) of this section result ina quantity of skim milk to be sub-tracted from Class I that exceeds thepounds of skim milk remaining in suchclass, the pounds of skim milk in ClassI shall be increased by an amount equalto such excess quantity to be sub-tracted, and the pounds of skim milkin Class II and Class III combined shallbe decreased by a like amount (de-creasing as necessary Class III andthen Class II). In such case the poundsof skim milk remaining in each classat this allocation step at the handler’sother pool plants shall be adjusted inthe reverse direction by a like amountbeginning with the nearest plant atwhich Class I utilization is available;

(13) Subtract from the pounds ofskim milk remaining in each class thepounds of skim milk in receipts of fluidmilk products and bulk fluid creamproducts from another pool plant ac-cording to the classification of suchproducts pursuant to § 1134.42(a); and

(14) If the total pounds of skim milkremaining in all classes exceed thepounds of skim milk in producer milkand milk subject to the provisions of§ 1134.42(e), subtract such excess fromthe pounds of skim milk remaining ineach class in series beginning withClass III. Any amount so subtractedshall be known as ‘‘overage’’;

(b) Butterfat shall be allocated in ac-cordance with the procedure outlinedfor skim milk in paragraph (a) of thissection; and

(c) The quantity of producer milkand milk subject to the provisions of§ 1134.42(e) in each class shall be thecombined pounds of skim milk and but-terfat remaining in each class after the

computations pursuant to paragraph(a)(14) of this section and the cor-responding step of paragraph (b) of thissection.


§ 1134.45 Market administrator’s re-ports and announcements concern-ing classification.

The market administrator shallmake the following reports and an-nouncements concerning classification:

(a) Whenever required for the purposeof allocating receipts from other orderplants pursuant to § 1134.44(a)(12) andthe corresponding step of § 1134.44(b),estimate and publicly announce theutilization (to the nearest whole per-centage) in each class during themonth of skim milk and butterfat, re-spectively, in producer milk of all han-dlers. Such estimate shall be basedupon the most current available dataand shall be final for such purpose.

(b) Report to the market adminis-trator of the other order, as soon aspossible after the report of receipts andutilization for the month is receivedfrom a handler who has received fluidmilk products or bulk fluid creamproducts from an other order plant, theclass to which such receipts are allo-cated pursuant to § 1134.43(d) and§ 1134.44 on the basis of such report, (in-cluding any reclassification of inven-tories of bulk concentrated fluid milkproducts), and thereafter, any changein such allocation required to correcterrors disclosed in the verification ofsuch report.

(c) Furnish to each handler operatinga pool plant who has shipped fluid milkproducts or bulk fluid cream productsto an other order plant, the class towhich such shipments were allocatedby the market administrator of theother order on the basis of the report ofthe receiving handler, and, as nec-essary, any changes in such allocationarising from the verification of such re-port.

(d) On or before the 12th day after theend of each month, report to each coop-erative association which so requeststhe amount and class utilization ofproducer milk delivered by members ofsuch association to each handler re-ceiving such milk. For the purpose of


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7 CFR Ch. X (1–1–97 Edition)§ 1134.50

this report, the milk so received shallbe prorated to each class in accordancewith the total utilization of producermilk by such handler.


CLASS PRICES

§ 1134.50 Class prices.

Subject to the provisions of § 1134.52,the class prices per hundredweight forthe month shall be as follows:

(a) Class I price. From the effectivedate hereof through April 30, 1988, andthereafter until amended, the Class Iprice shall be the basic formula pricefor the second preceding month plus$2.00.

(b) Class II price. The Class II priceshall be the basic formula price for thesecond preceding month plus $0.30.

(c) Class III price. The Class III priceshall be the basic formula price for themonth.

[47 FR 42991, Sept. 30, 1982, as amended at 51FR 12834, Apr. 16, 1986; 60 FR 6612, Feb. 2,1995]

§ 1134.51 Basic formula price.The basic formula price shall be the

preceding month’s average pay pricefor manufacturing grade milk in Min-nesota and Wisconsin using the ‘‘basemonth’’ series, as reported by the De-partment, adjusted to a 3.5 percent but-terfat basis using the butterfat dif-ferential for the preceding month com-puted pursuant to § 1134.74 and roundedto the nearest cent, plus or minus thechange in gross value yielded by thebutter-nonfat dry milk and Cheddarcheese product price formula computedpursuant to paragraphs (a) through (e)of this section.

(a) The gross values of per hundred-weight of milk used to manufacturebutter-nonfat dry milk and Cheddarcheese shall be computed, using pricedata determined pursuant to paragraph(b) of this section and annual yield fac-tors, for the preceding month and sepa-rately for the current month as fol-lows:

(1) The gross value of milk used tomanufacture butter-nonfat dry milkshall be the sum of the following com-putations:

(i) Multiply the Grade AA butterprice by 4.27;

(ii) Multiply the nonfat dry milkprice by 8.07; and

(iii) Multiply the dry buttermilkprice by 0.42.

(2) The gross value of milk used tomanufacture Cheddar cheese shall bethe sum of the following computations:

(i) Multiply the Cheddar cheese priceby 9.87; and

(ii) Multiply the Grade A butter priceby 0.238.

(b) The following product prices shallbe used pursuant to paragraph (a) ofthis section:

(1) Grade AA butter price. Grade AAbutter price means the simple averagefor the month of the Chicago Mer-cantile Exchange, Grade AA butterprice, as reported by the Department.

(2) Nonfat dry milk price. Nonfat drymilk price means the simple averagefor the month of the Western NonfatDry Milk Low/Medium Heat price, asreported by the Department.

(3) Dry buttermilk price. Dry butter-milk price means the simple averagefor the month of the Western Dry But-termilk price, as reported by the De-partment.

(4) Cheddar cheese price. Cheddarcheese price means the simple averagefor the month of the National CheeseExchange 40-pound block Cheddarcheese price, as reported by the Depart-ment.

(5) Grade A butter price. Grade A but-ter price means the simple average forthe month of the Chicago MercantileExchange Grade A butter price, as re-ported by the Department.

(c) Determine the amounts by whichthe gross value per hundredweight ofmilk used to manufacture butter-non-fat dry milk and the gross value perhundredweight of milk used to manu-facture Cheddar cheese for the currentmonth exceed or are less than the re-spective gross values for the precedingmonth.

(d) Compute weighting factors to beapplied to the changes in gross valuesdetermined pursuant to paragraph (c)of this section by determining the rel-ative proportion that the data includedin each of the following paragraphs isof the total of the data represented in


791


paragraphs (d)(1) and (d)(2) of this sec-tion:

(1) Combine the total nonfat dry milkproduction for the States of Minnesotaand Wisconsin, as reported by the De-partment, for the most recent preced-ing period, and divide by the annualyield factor for nonfat dry milk, 8.07,to determine the quantity (inhundredweights) of milk used in theproduction of butter-nonfat dry milk;and

(2) Combine the total Americancheese production for the States ofMinnesota and Wisconsin, as reportedby the Department, for the most recentpreceding period, and divide by the an-nual yield factor for Cheddar cheese,9.87, to determine the quantity (inhundredweights) of milk used in theproduction of American cheese.

(e) Compute a weighted average ofthe changes in gross values per hun-dredweight of milk determined pursu-ant to paragraph (c) of this section inaccordance with the relative propor-tions of milk determined pursuant toparagraph (d) of this section.

[60 FR 18977, Apr. 14, 1995]

§ 1134.52 Plant location adjustmentsfor handlers.

(a) For milk received from producersand from handlers described in§ 1134.9(c) at a pool plant, located morethan 100 miles by shortest highway dis-tance as measured by the market ad-ministrator, from the courthouse inGrand Junction, Colorado, and which isclassified as Class I milk or assignedClass I location adjustment creditunder paragraph (b) of this section, theprice computed pursuant to § 1134.50(a)shall be reduced by 15 cents if suchplant is located more than 100 milesbut not more than 110 miles from suchcourthouse, and by an additional 1.5cents for each 10 miles or fractionthereof that such distance exceeds 110miles.

(b) For purposes of calculating suchadjustment, transfers between poolplants shall be assigned to Class I dis-position at the transferee plant, in ex-cess of the sum of receipts at suchplant from producers and handlers de-scribed in § 1134.9(c), and the pounds as-signed as Class I to receipts from otherorder plants and unregulated supply

plants. Such assignment is to be madefirst to transferor plants at which nolocation adjustment credit is applica-ble and then in sequence beginningwith the plant at which the least loca-tion adjustment would apply.

(c) The Class I price applicable toother source milk shall be adjusted atthe rates set forth in paragraph (a) ofthis section, except that the adjustedClass I price shall not be less than theClass III price.

§ 1134.53 Announcement of classprices.

The market administrator shall an-nounce publicly on or before the fifthday of each month the Class I price andthe Class II price for the followingmonth, and the Class III price for thepreceding month.

[60 FR 6612, Feb. 2, 1995]

§ 1134.54 Equivalent price.If for any reason a price or pricing

constituent required by this part forcomputing class prices or for other pur-poses is not available as prescribed inthis part, the market administratorshall use a price or pricing constituentdetermined by the Secretary to beequivalent to the price or pricing con-stituent that is required.

UNIFORM PRICE

§ 1134.60 Handler’s value of milk forcomputing uniform price.

For the purpose of computing theuniform price, the market adminis-trator shall determine for each monththe value of milk of each handler withrespect to each of his pool plants and ofeach handler described in § 1134.9 (b)and (c) with respect to milk that wasnot received at a pool plant as follows:

(a) Multiply the pounds of producermilk and milk subject to the provisionsof § 1134.42(e) that were classified ineach class pursuant to §§ 1134.43(a) and1134.44(c) by the applicable class prices,and add the resulting amounts;

(b) Add the amounts obtained frommultiplying the pounds of overage sub-tracted from each class pursuant to§ 1134.44(a)(14) and the correspondingstep of § 1134.44(b) by the respectiveclass prices, as adjusted by the butter-fat differential specified in § 1134.74,


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7 CFR Ch. X (1–1–97 Edition)§ 1134.61

that are applicable at the location ofthe pool plant;

(c) Add the amount obtained frommultiplying the difference between theClass III price for the preceding monthand the Class I price applicable at thelocation of the pool plant or the ClassII price, as the case may be, for thecurrent month by the hundredweight ofskim milk and butterfat subtractedfrom Class I and Class II pursuant to§ 1134.44(a)(9) and the correspondingstep of § 1134.44(b);

(d) Add the amount obtained frommultiplying the difference between theClass I price applicable at the locationof the pool plant and the Class III priceby the hundredweight of skim milk andbutterfat assigned to Class I pursuantto § 1134.43(d) and the hundredweight ofskim milk and butterfat subtractedfrom Class I pursuant to§ 1134.44(a)(7)(i) through (iv) and thecorresponding step of § 1134.44(b), ex-cluding receipts of bulk fluid creamproducts from an other order plant andbulk concentrated fluid milk productsfrom pool plants, other order plantsand unregulated supply plants;

(e) Add the amount obtained frommultiplying the difference between theClass I price applicable at the locationof the transferor-plant and the Class IIIprice by the hundredweight of skimmilk and butterfat subtracted fromClass I pursuant to § 1134.44(a)(7) (v) and(vi) and the corresponding step of§ 1134.44(b);

(f) Add the amount obtained frommultiplying the Class I price applicableat the location of the nearest unregu-lated supply plants from which anequivalent volume was received by thepounds of skim milk and butterfat inreceipts of concentrated fluid milkproducts assigned to Class I pursuantto § 1134.43(d) and § 1134.44(a)(7)(i) andthe pounds of skim milk and butterfatsubtracted from Class I pursuant to§ 1134.44(a)(11) and the correspondingsteps of § 1134.44(b), excluding suchskim milk and butterfat in receipts ofbulk fluid milk products from an un-regulated supply plant to the extentthat an equivalent amount of skimmilk or butterfat disposed of to suchplant by handlers fully regulated underany Federal milk order is classifiedand priced as Class I milk and is not

used as an offset for any other paymentobligation under any order;

(g) Subtract, for reconstituted milkmade from receipts of nonfluid milkproducts, an amount computed by mul-tiplying $1.00 (but not more than thedifference between the Class I price ap-plicable at the location of the poolplant and the Class III price) by thehundredweight of skim milk and but-terfat contained in receipts of nonfluidmilk products that are allocated toClass I use pursuant to § 1134.43(d);

(h) Exclude, for pricing purposesunder this section, receipts of nonfluidmilk products that are distributed aslabeled reconstituted milk for whichpayments are made to the producer-settlement fund of another order under§ 1134.76 (a)(5) or (c); and

(i) For pool plants that transfer bulkconcentrated fluid milk products toother pool plants and other orderplants, add or subtract the amount perhundredweight of any class pricechange from the previous month thatresults from any inventory reclassifica-tion of bulk concentrated fluid milkproducts that occurs at the transfereeplant. Any such applicable class pricechange shall be applied to the plantthat used the concentrated milk in theevent that the concentrated fluid milkproducts were made from bulkunconcentrated fluid milk products re-ceived at the plant during the priormonth.


§ 1134.61 Computation of uniformprice.

For each month the market adminis-trator shall compute the uniform priceper hundredweight for milk of 3.5 per-cent butterfat content received fromproducers as follows:

(a) Combine into one total the valuescomputed pursuant to § 1134.60 for allhandlers who filed the reports pre-scribed in § 1134.30 for the month andwho made the payments pursuant to§§ 1134.71 and 1134.73 for the precedingmonth;

(b) Add an amount equal to the sumof the deductions to be made for loca-tion adjustments pursuant to § 1134.75;


793


(c) Add an amount equal to not lessthan one-half of the unobligated bal-ance in the producer-settlement fund;

(d) Divide the resulting amount bythe sum of the following for all han-dlers included in these computations:

(1) The total hundredweight of pro-ducer milk; and

(2) The total hundredweight forwhich a value is computed pursuant to§ 1134.60(f); and

(e) Subtract not less than 4 cents normore than 5 cents per hundredweight.The result shall be the ‘‘uniform price’’for milk received from producers.

§ 1134.62 Announcement of uniformprice and butterfat differential.

The market administrator shall an-nounce publicly on or before:

(a) The fifth day after the end of eachmonth the butterfat differential forsuch month; and

(b) The 12th day after the end of eachmonth the uniform price for suchmonth.

PAYMENTS FOR MILK

§ 1134.70 Producer-settlement fund.The market administrator shall es-

tablish and maintain a separate fundknown as the ‘‘producer-settlementfund’’ into which he shall deposit allpayments made by handlers pursuantto §§ 1134.71, 1134.76, and 1134.77, subjectto the provision of § 1134.78 and out ofwhich he shall make all payments pur-suant to §§ 1134.72 and 1134.77: Provided,That any payments due to any handlershall be offset by any payments duefrom such handler.

§ 1134.71 Payments to the producer-settlement fund.

(a) On or before the 13th day after theend of the month, each handler shallpay to the market administrator theamount, if any, by which the totalamount specified in paragraph (a)(1) ofthis section exceeds the amount speci-fied in paragraph (a)(2) of this section:

(1) The total value of milk of thehandler for such month as determinedpursuant to § 1134.60.

(2) The sum of:(i) The value at the uniform price, as

adjusted pursuant to § 1134.75, of suchhandler’s receipts of producer milk and

milk subject to the provisions of§ 1134.42(e). In the case of a cooperativeassociation which is a handler, less theamount due from other handlers pursu-ant to § 1134.73(a), exclusive of differen-tial butterfat values; and

(ii) The value at the uniform priceapplicable at the location of the plantfrom which received (not to be lessthan the Class III price) of other sourcemilk for which a value is computedpursuant to § 1134.60(f).

(b) On or before the 25th day after theend of the month each person who op-erated an order plant that was regu-lated during such month under anorder providing for individual-handlerpooling shall pay to the market admin-istrator an amount computed as fol-lows:

(1) Determine the quantity of recon-stituted skim milk in filled milk inroute disposition from such plant inthe marketing area which was allo-cated to Class I at such plant. If thereis such route disposition from suchplant in marketing areas regulated bytwo or more marketwide pool orders,the reconstituted skim milk allocatedto Class I shall be prorated to eachorder according to such route disposi-tion in each marketing area; and

(2) Compute the value of the reconsti-tuted skim milk assigned in paragraph(b)(1) of this section to route disposi-tion in this marketing area by mul-tiplying the quantity of such skimmilk by the difference between theClass I price under this part that is ap-plicable to the location of the otherorder plant (but not to be less than theClass III price) and the Class III price.

(c) Each vendor shall pay the marketadministrator on or before the 25th dayafter the end of the month at the dif-ference between the value of the skimmilk and butterfat in fluid milk prod-ucts received from a producer-handlerduring the month at the Class I priceapplicable at the location of the pro-ducer-handler’s plant (but not less thanthe Class III price) and its value at theClass III price subject to the followingconditions:

(1) The quantities of skim and butter-fat milk products on which paymentshall be made pursuant to this sectionshall not exceed the vendor’s Class I


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7 CFR Ch. X (1–1–97 Edition)§ 1134.72

disposition in the marketing duringthe month; and

(2) This section shall not apply to avendor whose total Class I dispositionis obtained from a producer-handler, orwhose total receipts and disposition offluid milk products are considered as apart of the receipts and disposition ofthe producer-handler pursuant to§ 1134.10(b)(3).

§ 1134.72 Payments from the producer-settlement fund.

On or before the 14th day after theend of each month, the market admin-istrator shall pay to each handler theamount, if any, by which the amountcomputed pursuant to § 1134.71(a)(2) ex-ceeds the amount computed pursuantto § 1134.71(a)(1). If, at such time, thebalance in the producer-settlementfund is insufficient to make all pay-ments pursuant to this section, themarket administrator shall reduce uni-formly such payments and shall com-plete such payments as soon as fundsare available.

§ 1134.73 Payments to producers andto cooperative associations.

Except as provided in paragraph (c)of this section, each handler shallmake payment to each producer fromwhom milk is received as follows:

(a) Not later than the last day of themonth, to each producer from whom hereceived milk during the first 18 daysof the month, a partial payment for themilk received during the first 15 daysof the month, at the Class III price forthe preceding month.

(b) Not later than the 16th day of themonth, for milk received during thepreceding month, an amount computedat not less than the uniform price, perhundredweight, pursuant to § 1134.61, asadjusted by the butterfat differentialspecified in § 1134.74, location adjust-ment specified in § 1134.75 and adjust-ments for errors made in previous pay-ments minus:

(1) Payments made pursuant to para-graph (a) of this section;

(2) Deductions for marketing servicespursuant to § 1134.86; and

(3) Deductions approved by the mar-ket administrator and authorized inwriting by the producer. If the handlerhas not received full payment for the

delivery period from the market ad-ministrator pursuant to § 1134.72, hemay reduce his total payments to allproducers uniformly by the amountowing to him by the market adminis-trator. The handler shall, however,complete all payments not later thanthe 16th day of the month following re-ceipt of the balance from the marketadministrator.

(c)(1) Upon receipt of a written re-quest from a cooperative associationwhich the market administrator deter-mines is authorized by its members tocollect payment for their milk, and re-ceipt of a written promise to reimbursethe handler the amount of any actualloss incurred by him because of any im-proper claim by the cooperative asso-ciation, each handler shall pay to thecooperative association on or beforethe second day preceding the dates setout in paragraphs (a) and (b) of thissection an amount equal to the sum ofthe individual payments otherwise pay-able to the producer members of suchorganization. This payment shall bemade for all milk of such producer cer-tified by the cooperative association asa member, beginning the first day ofthe month following receipt of the cer-tification and ending the last day ofthe month next preceding the date onwhich a written notice from the coop-erative association terminating themembership was received.

(2) A copy of the request for pay-ment, promise to reimburse, and cer-tified list of members, shall be filed si-multaneously with the market admin-istrator. He may verify the informa-tion by auditing the records of the co-operative association. Exceptions tothe accuracy of the membership cer-tification, by a producer or by a han-dler, shall be made in writing to themarket administrator for his deter-mination.

(d) In making the payments to pro-ducers under paragraphs (b) and (c) ofthis section, each handler shall furnisheach producer or cooperative associa-tion from whom he has received milk,a supporting statement which shallshow for each month;

(1) The month and the identity of thehandler and of the producer;


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(2) The total pounds and the averagebutterfat content of milk receivedfrom such producer;

(3) The minimum rate or rates atwhich payment to such producer is re-quired under this part;

(4) The rate which is used in makingthe payment if such rate is other thanthe applicable minimum rate;

(5) The amount or the rate per hun-dredweight and nature of each deduc-tion claimed by the handler; and

(6) The net amount of payment tosuch producer.

(e) For milk received from a poolplant operated by a cooperative asso-ciation or from a handler described in§ 1134.9(c), each handler shall on or be-fore the second day prior to the datepayments are due individual producers,pay such cooperative association formilk as follows:

(1) A partial payment for milk re-ceived during the first 15 days of themonth at not less than the Class IIIprice for the preceding month; and

(2) A final settlement equal to thevalue of such milk at the uniformprice, as adjusted pursuant to §§ 1134.74and 1134.75, less payment made pursu-ant to paragraph (e)(1) of this section.

§ 1134.74 Butterfat differential.For milk containing more or less

than 3.5 percent butterfat, the uniformprice shall be increased or decreased,respectively, for each one-tenth per-cent butterfat variation from 3.5 per-cent by a butterfat differential, round-ed to the nearest one-tenth cent, whichshall be 0.138 times the currentmonth’s butter price less 0.0028 timesthe preceding month’s average payprice per hundredweight, at test, formanufacturing grade milk in Min-nesota and Wisconsin, using the ‘‘basemonth’’ series, adjusted pursuant to§ 1134.51 (a) through (e), as reported bythe Department. The butter pricemeans the simple average for themonth of the Chicago Mercantile Ex-change, Grade A butter price as re-ported by the Department.

[60 FR 18978, Apr. 14, 1995]

§ 1134.75 Plant location adjustmentsfor producers and on nonpool milk.

(a) The uniform price to be paid formilk received at a pool plant from pro-

ducers, in bulk from a pool plant oper-ated by a cooperative association, andfrom a handler described in § 1134.9(c)may be reduced by the amount of thelocation adjustment applicable at thelocation of the pool plant at whichsuch milk was first physically receivedfrom producers, and the uniform pricefor producer milk diverted to a nonpoolplant shall be reduced according to thelocation of the pool plant from whichdiverted, each at the rates set forth in§ 1134.52; and

(b) For purposes of computations pur-suant to §§ 1134.71 and 1134.72 the uni-form price shall be adjusted at therates set forth in § 1134.52 applicable atthe location of the nonpool plant fromwhich the milk was received (but notto be less than the Class III price).

§ 1134.76 Payments by a handler oper-ating a partially regulated distrib-uting plant.

Each handler who operates a par-tially regulated distributing plantshall pay on or before the 25th dayafter the end of the month to the mar-ket administrator for the producer-set-tlement fund the amount computedpursuant to paragraph (a) of this sec-tion. If the handler submits pursuantto §§ 1134.30(b) and 1134.31(b) the infor-mation necessary for making the com-putations, such handler may elect topay in lieu of such payment theamount computed pursuant to para-graph (b) of this section:

(a) The payment under this para-graph shall be the amount resultingfrom the following computations:

(1) Determine the pounds of routedisposition in the marketing area fromthe partially regulated distributingplant;

(2) Subtract the pounds of fluid milkproducts received at the partially regu-lated distributing plant:

(i) As Class I milk from pool plantsand other order plants, except thatsubtracted under a similar provision ofanother Federal milk order; and

(ii) From another nonpool plant thatis not an other order plant to the ex-tent that an equivalent amount of fluidmilk products disposed of to suchnonpool plant by handlers fully regu-lated under any Federal milk order isclassified and priced as Class I milk


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and is not used as an offset for anyother payment obligation under anyorder;

(3) Subtract the pounds of reconsti-tuted milk that are made fromnonfluid milk products and which arethen disposed of as route disposition inthe marketing area from the partiallyregulated distributing plant;

(4) Multiply the remaining pounds bythe difference between the Class I priceand the uniform price, both prices to beapplicable at the location of the par-tially regulated distributing plant (ex-cept that the Class I price and the uni-form price shall not be less than theClass III price); and

(5) Add the amount obtained frommultiplying the pounds of labeled re-constituted milk included in paragraph(a)(3) of this section by the differencebetween the Class I price applicable atthe location of the partially regulateddistributing plant less $1.00 (but not tobe less than the Class III price) and theClass III price. For any reconstitutedmilk that is not so labeled, the Class Iprice shall not be reduced by $1.00. Al-ternatively, for such disposition, pay-ments may be made to the producer-settlement fund of the order regulatingthe producer milk used to produce thenonfluid milk ingredients at the dif-ference between the Class I price appli-cable under the other order at the loca-tion of the plant where the nonfluidmilk ingredients were processed (butnot to be less than the Class III price)and the Class III price. This paymentoption shall apply only if a majority ofthe total milk received at the plantthat processed the nonfluid milk ingre-dients is regulated under one or moreFederal orders and payment may onlybe made to the producer-settlementfund of the order pricing a plurality ofthe milk used to produce the nonfluidmilk ingredients. This payment optionshall not apply if the source of thenonfluid ingredients used in reconsti-tuted fluid milk products cannot be de-termined by the market administrator.

(b) The payment under this para-graph shall be the amount resultingfrom the following computations:

(1) Determine the value that wouldhave been computed pursuant to§ 1134.60 for the partially regulated dis-tributing plant if the plant had been a

pool plant, subject to the followingmodifications:

(i) Fluid milk products and bulk fluidcream products received at the par-tially regulated distributing plant froma pool plant or an other order plantshall be allocated at the partially regu-lated distributing plant to the sameclass in which such products were clas-sified at the fully regulated plant;

(ii) Fluid milk products and bulkfluid cream products transferred fromthe partially regulated distributingplant to a pool plant or an other orderplant shall be classified at the par-tially regulated distributing plant inthe class to which allocated at thefully regulated plant. Such transfersshall be allocated to the extent pos-sible to those receipts at the partiallyregulated distributing plant from poolplants and other order plants that areclassified in the corresponding classpursuant to paragraph (b)(1)(i) of thissection. Any such transfers remainingafter the above allocation which areclassified in Class I and for which avalue is computed for the handler oper-ating the partially regulated distribut-ing plant pursuant to § 1134.60 shall bepriced at the uniform price (or at theweighted average price if such is pro-vided) of the respective order regulat-ing the handling of milk at the trans-feree-plant, with such uniform priceadjusted to the location of the nonpoolplant (but not to be less than the low-est class price of the respective order),except that transfers of reconstitutedskim milk in filled milk shall be pricedat the lowest class price of the respec-tive order; and

(iii) If the operator of the partiallyregulated distributing plant so re-quests, the value of milk determinedpursuant to § 1134.60 for such handlershall include, in lieu of the value ofother source milk specified in§ 1134.60(f) less the value of such othersource milk specified in§ 1134.71(a)(2)(ii), a value of milk deter-mined pursuant to § 1134.60 for eachnonpool plant that is not an otherorder plant which serves as a supplyplant for such partially regulated dis-tributing plant by making shipmentsto the partially regulated distributingplant during the month equivalent to


797


the requirements of § 1134.7(b) subjectto the following conditions:

(a) The operator of the partially reg-ulated distributing plant submits withits reports filed pursuant to §§ 1134.30(b)and 1134.31(b) similar reports for eachsuch nonpool supply plant;

(b) The operator of such nonpool sup-ply plant maintains books and recordsshowing the utilization of all skimmilk and butterfat received at suchplant which are made available if re-quested by the market administratorfor verification purposes; and

(c) The value of milk determined pur-suant to § 1134.60 for such nonpool sup-ply plant shall be determined in thesame manner prescribed for computingthe obligation of such partially regu-lated distributing plant; and

(2) From the partially regulated dis-tributing plant’s value of milk com-puted pursuant to paragraph (b)(1) ofthis section, subtract:

(i) The gross payments by the opera-tor of such partially regulated distrib-uting plant, adjusted to a 3.5 percentbutterfat basis by the butterfat dif-ferential specified in § 1134.74, for milkreceived at the plant during the monththat would have been producer milk ifthe plant had been fully regulated;

(ii) If paragraph (b)(1)(iii) of this sec-tion applies, the gross payments by theoperator of such nonpool supply plant,adjusted to a 3.5 percent butterfat basisby the butterfat differential specifiedin § 1134.74, for milk received at theplant during the month that wouldhave been producer milk if the planthad been fully regulated; and

(iii) The payments by the operator ofthe partially regulated distributingplant to the producer-settlement fundof another order under which suchplant is also a partially regulated dis-tributing plant and like payments bythe operator of the nonpool supplyplant if paragraph (b)(1)(iii) of this sec-tion applies.

(c) Any handler may elect partiallyregulated distributing plant status forany plant with respect to receipts ofnonfluid milk ingredients assigned toClass I use under § 1134.43(d). Paymentsmay be made to the producer-settle-ment fund of the order regulating theproducer milk used to produce thenonfluid milk ingredients at the dif-

ference between the Class I price appli-cable under the other order at the loca-tion of the plant where the nonfluidmilk ingredients were processed (butnot to be less than the Class III price)and the Class III price. This paymentoption shall apply only if a majority ofthe total milk received at the plantthat processed the nonfluid milk ingre-dients is regulated under one or moreFederal orders and payment may onlybe made to the producer-settlementfund of the order pricing a plurality ofthe milk used to produce the nonfluidmilk ingredients. This payment optionshall not apply if the source of thenonfluid ingredients used in reconsti-tuted fluid milk products cannot be de-termined by the market administrator.


§ 1134.77 Adjustment of accounts.Whenever audit by the market ad-

ministrator of any handler’s reports,books, records, or accounts, or otherverification discloses errors resultingin moneys due a producer or the mar-ket administrator from such handler ordue such handler from the market ad-ministrator, the market administratorshall promptly notify such handler ofany amount so due and payment there-of shall be made on or before the nextdate for making payments as set forthin the provisions under which sucherror occurred.

§ 1134.78 Charges on overdue ac-counts.

The unpaid obligation of a handlerpursuant to §§ 1134.71, 1134.76, 1134.77,1134.85 and 1134.86 shall be increased 1percent for each month or portionthereof beginning with the third dayfollowing the date by which such obli-gation was payable: Provided, That:

(a) The amounts payable pursuant tothis section shall be computed monthlyon each unpaid obligation, which shallinclude any unpaid interest chargespreviously made pursuant to this sec-tion; and

(b) For the purpose of this section,any obligation that was determined ata date later than that prescribed by theorder because of a handler’s failure tosubmit a report to the market adminis-trator when due shall be considered to


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have been payable by the date it wouldhave been due if the report had beenfiled when due.

ADMINISTRATIVE ASSESSMENT ANDMARKETING SERVICE DEDUCTION

§ 1134.85 Assessment for order admin-istration.

As his pro rata share of the expenseof administration of the order, eachhandler shall pay to the market admin-istrator on or before the 13th day afterthe end of the month 5 cents per hun-dredweight or such lesser amount asthe Secretary may prescribe with re-spect to:

(a) Producer milk (including milksubject to the provisions of § 1134.42(e)but excluding such milk in the case ofa cooperative association which is ahandler of milk subject to the provi-sions of § 1134.42(e)) and such handler’sown production;

(b) Receipts of concentrated fluidmilk products from unregulated supplyplants and receipts of nonfluid milkproducts assigned to Class I use pursu-ant to § 1134.43(d) and other source milkallocated to Class I pursuant to § 1134.44(a)(7) and (a)(11) and the correspondingsteps of § 1134.44(b), except such othersource milk that is excluded from thecomputations pursuant to § 1134.60 (d)and (f); and

(c) Route disposition in the market-ing area from a partially regulated dis-tributing plant during the month thatexceeds the skim milk and butterfatsubtracted pursuant to § 1134.76(a)(2).


§ 1134.86 Deduction for marketingservices.

(a) Except as set forth in paragraph(b) of this section, each handler inmaking payments to producers formilk (other than milk of his own pro-duction) pursuant to § 1134.73, shall de-duct 6 cents per hundredweight, orsuch lesser amount as may be pre-scribed by the Secretary, and shall paysuch deductions to the market admin-istrator on or before the 13th day afterthe end of the month. Such moneyshall be used by the market adminis-trator to provide market informationand to check the accuracy of the test-

ing and weighing of their milk for pro-ducers who are not receiving such serv-ices from a cooperative association.

(b) For producers who are members ofa cooperative association which theSecretary has determined is actuallyperforming the services set forth inparagraph (a) of this section, each han-dler shall make, in lieu of the deduc-tion specified in paragraph (a) of thissection, such deductions from the pay-ments to be made to producers as maybe authorized by the membershipagreement or marketing contract be-tween the cooperative association andits members, and on or before the 14thday after the end of each month, thehandler shall pay the aggregateamount of such deductions to the coop-erative association, furnishing a state-ment showing the amount of the deduc-tions and the quantity of milk onwhich the deductions from each pro-ducer was computed.

PART 1135—MILK IN THE SOUTH-WESTERN IDAHO–EASTERN OR-EGON MARKETING AREA

Subpart—Order Regulating Handling

GENERAL PROVISIONS

Sec.1135.1 General provisions.

DEFINITIONS

1135.2 Southwestern Idaho-Eastern Oregonmarketing area.

1135.3 Route disposition.1135.4 Plant.1135.5 Distributing plant.1135.6 Supply plant.1135.7 Pool plant.1135.8 Nonpool plant.1135.9 Handler.1135.10 Producer-handler.1135.11 [Reserved]1135.12 Producer.1135.13 Producer milk.1135.14 Other source milk.1135.15 Fluid milk product.1135.16 Fluid cream product.1135.17 Filled milk.1135.18 Cooperative association.1135.19 [Reserved]1135.20 Commercial food processing estab-

lishment.

HANDLER REPORTS

1135.30 Reports of receipts and utilization.1135.31 Payroll reports.1135.32 Other reports.


Documents

PART 1134—MILK IN THE WESTERN COLORADO MARKETING AREA - GPO · PART 1134—MILK IN THE WESTERN COLORADO MARKETING AREA ... sions in part 1000 of this chapter are ... VerDate 06-MAR-97