Current through Register Vol. 46, No. 12, March 20, 2024
The classification of milk received from producers at
each pool plant or pool unit for each handler shall be determined each month
pursuant to subdivisions (a), (b) and (c) of this section: provided, that for
the purpose of establishing the pool status of any plant with Class I-A route
disposition in the marketing area which is not a pool plant pursuant to section
20.24 of this
Part, skim milk and butterfat in milk received at such plant directly from
dairy farmers or units up to an amount sufficient to qualify such plant as a
pool plant pursuant to section
20.28(a) or
(b) of this Part shall be considered the
source of such Class I-A route disposition of such plant and be subtracted from
Class I-A prior to the application of the allocation sequence set forth in
subdivisions (a) and (b) of this section, unless at the time of filing the
handler's report pursuant to section
20.30
of this Part the handler elects not to have it so allocated.
(a) Skim milk shall be allocated in the
following manner:
(1) Subtract from the total
pounds of skim milk in Class III the pounds of skim milk classified as Class
III pursuant to section
20.42(b)
of this Part.
(2) Subtract the
pounds of skim milk received in packaged form from a producer-handler for
marketing as certified fluid milk products from the total pounds of skim milk
in Class I-A and Class I-B milk, respectively, in accordance with its
proportionate disposition in such classes.
(3) Subtract from the remaining pounds of
skim milk in Class III, 2 percent of the pounds of skim milk in packaged fluid
milk products received from other order plants, and subtract the balance from
Class I-A.
(4) Subtract from the
remaining pounds of skim milk in Class I-A the pounds of skim milk in packaged
fluid milk products in inventory at the beginning of the month. This paragraph
shall apply only if the pool plant was subject to the provisions of this
subdivision or comparable provisions of another Federal milk order in the
immediately preceding month.
(5)
Subtract from the pounds of skim milk in Class II the pounds of skim milk in
products specified in section
20.41(c)(1)
of this Part that were received in packaged form from other plants, but not in
excess of the pounds of skim milk remaining in Class II.
(6) Subtract from the remaining pounds of
skim milk in Class II the pounds of skim milk in products specified in section
20.41(c)(1)
of this Part in packaged form and in bulk concentrated fluid milk products that
were in inventory at the beginning of the month, but not in excess of the
pounds of skim milk remaining in Class II. This paragraph shall apply only if
the pool plant was subject to the provisions of this paragraph or comparable
provisions of another Federal milk order in the immediately preceding
month.
(7) Subtract from the
remaining pounds of skim milk in Class II the pounds of skim milk in bulk
concentrated fluid milk products and in other source milk (except other source
milk received in the form of an unconcentrated fluid milk product or a fluid
cream product) that is used to produce, or added to, any product specified in
section
20.41(c)
of this Part excluding the quantity of such skim milk that was classified as
Class III milk pursuant to section
20.41(d)(6)
of this Part, but not in excess of the pounds of skim milk remaining in Class
II.
(8) Subtract in the order
specified below from the pounds of skim milk remaining in Class I-A, Class II
and Class III milk, in series beginning with Class III, the pounds of skim milk
in:
(i) Bulk concentrated fluid milk products
and other source milk (except other source milk received in the form of an
unconcentrated fluid milk product) and, if paragraph (6) of this subdivision
applies, packaged inventory at the beginning of the month of products specified
in section
20.41(c)(1)
of this Part that was not subtracted pursuant to paragraphs (5), (6) and (7) of
this subdivision.
(ii) Receipts of
fluid milk products not approved by a duly constituted health authority which
are excepted from the pool milk definition pursuant to section
20.14(b)
of this Part;
(iii) Receipts of
fluid milk products from a producer-handler pursuant to an other order or a
producer-handler defined pursuant to section
20.12 of this
Part (except pool milk designated in the preamble of section
20.14 ).
(iv) Receipts of fluid milk products from a
handler's plant at which milk is excepted from the pool milk definition
pursuant to section
20.14(h)
of this Part.
(v) Receipts of fluid
milk products from a handler with own farm milk, which milk is excepted from
the pool milk definition pursuant to section
20.14(i)
of this Part.
(9)
Subtract in series beginning with Class III from the pounds of skim milk
remaining in Class II and Class III milk the pounds of skim milk in receipts of
other source milk in the form of fluid milk products from plants other than
those defined in section
20.8(b) or
(d) of this Part and units other than pool
units for which the handler requests a Class II or Class III classification,
but not in any case to exceed the pounds of skim milk remaining in such
class.
(10) Subtract from the
remaining pounds of skim milk in Class II or Class III milk the pounds of skim
milk in bulk receipts of fluid milk products from other order plants not
previously assigned and for which a Class II or Class III classification is
requested by both the transferor and transferee handler in filing reports of
receipts and utilization for the month with their respective market
administrators, but not in any case to exceed the pounds of skim milk remaining
in such class.
(11) Subtract from
the pounds of skim milk remaining in each class, in series beginning with Class
III, the pounds of skim milk in fluid milk products and products specified in
section
20.41(c)(1)
of this Part, in inventory at the beginning of the month that were not
subtracted pursuant to paragraphs (4), (6) and (8)(i) of this
subdivision.
(12) Add to the
remaining pounds of skim milk in Class III the pounds subtracted pursuant to
paragraph (1) of this subdivision.
(13)
(i)
Subtract pro rata from the pounds of skim milk remaining in Class I-B, Class II
and Class III milk the remaining pounds of skim milk in receipts of other
source milk in the form of fluid milk products from plants not defined pursuant
to section
20.8(b) or
(d) of this Part and from units other than
pool units: provided, That if the pounds of skim milk to be assigned pursuant
to this subparagraph (i) of this paragraph exceed the available pounds of skim
milk in Class I-B, Class II, and Class III the handler shall designate the
priority of sources to be assigned to such classes.
(ii) No assignment shall be made pursuant to
this paragraph with respect to milk received from a plant not defined pursuant
to section
20.8(b) or
(d) of this Part in the 401 miles and over
freight zone at a plant from which 50 percent or more of the gross receipts of
skim milk and butterfat leaves the plant in the form of fluid milk products in
consumer packages or dispenser inserts and is classified as Class
I-A.
(14) Subtract pro
rata from the remaining pounds of skim milk in each class the pounds of skim
milk in receipts from dairy farmers and from the handler's own farm which are
excepted from the pool milk definition pursuant to section
20.14(h) and
(i) of this Part.
(15) Subtract in the manner specified below
from the pounds of skim milk remaining in each class the pounds of skim milk in
receipts of fluid milk products from other order plants not previously assigned
pursuant to paragraphs (3) and (10) of this subdivision:
(i) Subject to the provisions of this
paragraph, such subtraction shall be pro rata to the pounds of skim milk in
each class with respect to whichever of the following quantities represents the
higher proportion of Class II and Class III milk combined:
(a) the estimated utilization of skim milk of
all handlers in each class as announced for the month pursuant to section
20.22(d)
of this Part; or
(b) the total
pounds of skim milk remaining in each class at this allocation step at all pool
plants of the handler (excluding any duplication of utilization in each class
resulting from transfers between pool plants of the handler).
(ii) Should the proration pursuant
to subparagraph (i) of this paragraph result in the total pounds of skim milk
at all pool plants of the handler that are to be subtracted at this allocation
step from Class II and Class III combined exceeding the pounds of skim milk
remaining in Class II and Class III at all such plants, the pounds of such
excess shall be subtracted from the pounds of skim milk remaining in Class I-A
milk and Class I-B milk after such proration at the pool plants at which such
other source milk was received.
(iii) Except as provided in subparagraph (ii)
of this paragraph, should the computations pursuant to subparagraph (i) or (ii)
of this paragraph result in a quantity of skim milk to be subtracted from Class
II and Class III combined that exceeds the pounds of skim milk remaining in
such classes, the pounds of skim milk in Class II and Class III combined shall
be increased (increasing as necessary Class III and then Class II to the extent
of available utilization in such classes at the nearest other pool plant of the
handler, and then at each successively more distant pool plant of the handler)
by an amount equal to such excess quantity to be subtracted, and the pounds of
skim milk in Class I-A milk and Class I-B milk combined shall be decreased by a
like amount, pro rata to remaining utilization in each such class. In such
case, the pounds of skim milk remaining in each class at this allocation step
at the handler's other pool plants shall be adjusted in the reverse direction
by a like amount.
(iv) Except as
provided in subparagraph (ii) of this paragraph, should the computations
pursuant to subparagraph (i) or (ii) of this paragraph result in a quantity of
skim milk to be subtracted from Class I-A milk or Class I-B milk that exceeds
the pounds of skim milk remaining in that class, the pounds of skim milk in
such class shall be increased by an amount equal to such excess quantity to be
subtracted, and the pounds of skim milk in Class II and Class III combined
shall be decreased by a like amount (decreasing as necessary Class III and then
Class II). In such case, the pounds of skim milk remaining in each class at
this allocation step at the handler's other pool plants shall be adjusted in
the reverse direction by a like amount in sequence beginning with the nearest
other pool plant of such handler at which Class I-A or Class I-B utilization is
available.
(16) If the
plant at which assignment is being made is a plant from which 50 percent or
more of the gross receipts of skim milk and butterfat in the form of fluid milk
products left the plant in the form of fluid milk products in consumer packages
or dispenser inserts and was classified as Class I-A, subtract pro rata from
the remaining pounds of skim milk in each class the pounds of skim milk in
receipts of fluid milk product from plants in the 401 miles and over freight
zone, not defined pursuant to section
20.8(b) or
(d) of this Part.
(17) Subtract from the remaining pounds of
skim milk in Class I-A milk the pounds of skim milk in remaining receipts from
plants (except other order plants) of units the pool status of which has not
been established and which receipts have not previously been assigned pursuant
to paragraphs (13) and (16) of this subdivision.
(18) Subtract from the remaining pounds of
skim milk in each class the pounds of skim milk received in the form of fluid
milk products and bulk fluid cream products from other pool plants and from
pool units (not previously assigned pursuant to the preamble of this section),
in accordance with the classification assigned by the transferee handler
subject to the conditions of subparagraphs (i) through (iii) of this paragraph:
(i) The skim milk so assigned to any class of
utilization shall be limited to the amount thereof remaining in such class in
the transferee plant.
(ii) If the
transferor plant received during the month other source milk to be allocated
pursuant to paragraph (7) of this subdivision the skim milk so transferred
shall be classified so as to allocate the least possible Class I-A or I-B
utilization to such other source milk.
(iii) If the transferor handler received
during the month other source milk to be allocated pursuant to paragraph (13)
of this subdivision, the skim milk so transferred shall not be classified as
Class I-A or I-B to a greater extent than would be applicable to a like
quantity of such other source milk received at the transferee plant.
(19) Add to the remaining pounds
of skim milk in Class I-A the pounds of skim milk received directly from dairy
farmers or units which was deducted pursuant to the proviso in the preamble of
this section.
(20) If the pounds of
skim milk remaining in all classes exceeds the pounds of skim milk in receipts
from producers subtract such excess from the pounds of skim milk remaining in
each class in series beginning with Class III. Any amount so subtracted shall
be know as overage.