Code of Maine Rules
01 - DEPARTMENT OF AGRICULTURE, CONSERVATION AND FORESTRY
015 - MAINE MILK COMMISSION
Chapter 20 - PREVENTION OF DESTRUCTIVE COMPETITION
Section 015-20-VII - COST OF MILK TO AN INTEGRATED OPERATION
Current through 2024-13, March 27, 2024
A. Overview. The cost of milk to an integrated operation shall be the integrated operation's raw product costs plus all expenses of the integrated operation directly and indirectly incurred in the receiving, processing, packaging, delivering/shipping, handling and selling milk. Examples of expenses directly and indirectly incurred in the receiving, processing, packaging, delivering/shipping, handling and selling milk are set forth in Section I(B) and W.
B. Raw Product Costs. The raw product costs of an integrated operation shall be determined as set forth in Section V.(B).
C. Actual Expenses: McClain Wholesale and Retail Cost Accounting Systems. The Commission may determine the expenses of an integrated operation directly and indirectly incurred in receiving, processing, packaging, delivering/shipping, handling and selling milk according to the McClain System contained in Rule 5A and the McClain System (retail) described in Section VI.(B). Procedures for the collection of McClain System reports, forms, and other information set forth in Sections V.(B) and (E) (1) and VI.(B) shall apply to integrated operations. Alternatively, an integrated operation may also submit a determination of its expenses by a cost accounting system other than the McClain System and request that the Commission use such other system to determine the integrated operation's expenses. An integrated operation submitting a determination of expenses by a cost accounting system other than McClain must demonstrate, and the Commission must find, that the cost accounting system is regularly used by the integrated operation in the conduct of its business, that it is based on generally accepted cost accounting principles and that it is at least equivalent to the McClain System in comprehensiveness and reliability as to expenses incurred in receiving, processing, packaging, delivering/shipping, handling and selling milk. Where these. findings are not made, the integrated operation shall prepare and file, within the time specified by the Commission, the McClain System reporting forms required by Rule 5A and the McClain System (retail) reports. Where these findings are made, the Commission will rely on the system submitted by the integrated operation as the appropriate demonstration of the integrated operation's actual expenses.
D. Imputed Expenses Based on Combined Dealer and Retail Margins.