Current through August 26, 2024
(1) GENERAL. In any
proceeding against a dairy plant operator, in which the operator is alleged to
have discriminated between pay classes or individual producers in violation of
s.
ATCP 100.981, it is a defense for the operator to prove,
based on documentary evidence which the operator possessed and relied upon at
the time of the alleged discrimination, that the amount of the price
discrimination per hundredweight between those pay classes or individual
producers did not exceed, in any relevant pay period, the difference in the
operator's relevant procurement cost per hundredweight between those pay
classes or producers.
(2) VOLUME
PREMIUMS BASED ON TOTAL MILK VOLUME. A dairy plant operator shall use the
following relevant procurement costs per hundredweight to justify, under sub.
(1), discrimination resulting from the payment of volume premiums based on
total milk volume:
(a)
Pay
class. The operator's relevant procurement cost per hundredweight for
each pay class is the operator's "producer service cost per hundredweight" for
that pay class, calculated according to sub. (4) (a).
(b)
Individual producer. The
operator's relevant procurement cost per hundredweight for each individual
producer is the operator's "producer service cost per hundredweight" for that
individual producer, calculated according to sub. (4) (b).
(3) VOLUME PREMIUMS BASED ON VOLUME PER
PICKUP. A dairy plant operator shall use the following relevant procurement
costs per hundredweight to justify, under sub. (1), discrimination resulting
from the payment of volume premiums based on volume per pickup:
(a)
Pay class. The
operator's relevant procurement cost per hundredweight for a pay class is the
sum of the operator's "producer service cost per hundredweight" under sub. (4)
(a) and "pickup cost per hundredweight" under sub. (5) (a), except that the
operator may not include "producer service cost per hundredweight" if the
operator also pays volume premiums based on total volume.
(b)
Individual producer. The
operator's relevant procurement cost per hundredweight for an individual
producer is the sum of the operator's "producer service cost per hundredweight"
under sub. (4) (b) and "pickup cost per hundredweight" under sub. (5) (b),
except that the operator may not include "producer service cost per
hundredweight" if the operator also pays volume premiums based on milk volume.
Note: If a dairy plant operator pays separate volume
premiums based on total milk volume and volume per pickup, the operator must
separately justify the total volume premiums under sub. (2) and the per-pickup
volume premiums under sub. (3).
(4) PRODUCER SERVICE COST PER HUNDREDWEIGHT.
(a)
For a pay class. To
calculate a dairy plant operator's "producer service cost per hundredweight"
for a pay class in any pay period:
1.
Determine the operator's base period producer service cost, as defined in s.
ATCP 100.98(2). Divide that cost by the
average number of producers who shipped milk to the operator during the base
period.
2. Multiply the result
under subd. 1. by the number of producers in the pay class during the relevant
pay period.
3. Divide the result
under subd. 2. by the hundredweights of milk which the pay class produced
during the relevant pay period. This yields the operator's "producer service
cost per hundredweight" for that pay class in that pay
period.
(b)
For
an individual producer. To calculate a dairy plant operator's
"producer service cost per hundredweight" for an individual producer in any pay
period:
1. Determine the operator's base
period producer service cost, as defined in s.
ATCP 100.98(2). Divide that cost by the
average number of producers who shipped milk to the operator during the base
period.
2. Divide the result under
subd. 1. by the number of hundredweights of milk which the individual producer
shipped to the operator during the relevant pay period. This yields the
operator's "producer service cost per hundredweight" for that individual
producer in that pay period.
(5) PICKUP COST PER HUNDREDWEIGHT.
(a)
For a pay class. To
calculate a dairy plant operator's "pickup cost per hundredweight" for a pay
class in any pay period:
1. Determine the
operator's base period pickup cost, as defined in s.
ATCP 100.98(3). Divide that cost by the
total number of farm stops made during the base period.
2. Multiply the result under subd.
1. by the number of stops made, during the
relevant pay period, at dairy farms operated by producers in the pay
class.
3. Divide the result under
subd. 2. by the hundredweights of milk collected, during the relevant pay
period, from producers in the pay class. This yields the operator's "pickup
cost per hundredweight" for that pay class in that pay period.
(b)
For an
individual producer. To calculate a dairy plant operator's "pickup
cost per hundredweight" for an individual producer in any pay period:
1. Determine the operator's base period
pickup cost, as defined in s.
ATCP 100.98(3). Divide that cost by the
total number of farm stops made during the base period.
2. Multiply the result under subd.
1. by the number of stops made at the
producer's dairy farm during the relevant pay period.
3. Divide the result under subd. 2. by the
hundredweights of milk collected from the producer's dairy farm during the
relevant pay period. This yields the operator's "pickup cost per hundredweight"
for that individual producer in that pay period.
(6) COST ACCOUNTING.
(a) At the request of a dairy plant operator,
the department may approve alternative methods for calculating relevant
procurement costs per hundredweight under this section. The department shall
give its approval, if any, in writing.
(b) Costs under this section shall be
determined on the basis of generally accepted accounting principles using the
accrual method of accounting.
(7) VALUE OF NON-PRICE CONSIDERATION PER
HUNDREDWEIGHT. If a dairy plant operator seeks to cost-justify a discrimination
in non-price consideration under s.
ATCP 100.981(2), the operator shall
calculate the value of that non-price consideration per hundredweight by
dividing the value of the non-price consideration provided in each pay period
by the hundredweights of milk which the recipient of that non-price
consideration produced during that pay period.
