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Part § 1060.1 General provisions. 1060.20 Plant. 1060.21 Distributing plant.

The terms, definitions, and provisions 1060.22 Supply plant.

in Part 1000 of this chapter are hereby 1060.23 Pool plant.

incorporated by reference and made a 1060.24 Nonpool plant.

part of this order. MARKET ADMINISTRATOR

[36 F.R. 9850, May 29, 1971) 1060.32 Additional duties of the market § 1060.2 Minnesota-North Dakota maradministrator.

keting area. REPORTS

(a) “Minnesota-North Dakota mar1060.35 Reports of receipts and utilization.

keting area" (referred to in this part as 1060.36 Payroll reports.

the “marketing area”) means all the 1060.37 Other reports.

territory within the boundaries of the

counties listed below, including territory CLASSIFICATION OF MILK

wholly or partly within such boundaries 1060.40 Skim milk and butterfat to be occupied by Government (municipal, classified.

State, or ederal) reservations, instal1060.41 Classes of utilization.

lations, institutions or other similar es1060.42 Shrinkage.

tablishments: 1060.44 Transfers. 1060.45 Computation of skim milk and

MINNESOTA butterfat in each class.


Marshall. 1060.46 Allocation of skim milk and but


Norman. terfat classified.

Big Stone.

Otter Tail.



Polk. 1060.50 Basic formula price.


Red Lake. 1060.51 Class prices.


Roseau. 1060.52 Butterfat differentials to handlers.


Stevens. 1060.53 Locatic differentials to handlers.



Lake of the Woods. Wadena.

1060.60 Producer-handlers and exempt in-

NORTH DAKOTA 1060.61 Plants subject to other Federal


Pembina. orders.


Ramsey. 1060.62 Obligation of handler operating a


Ransom. partially regulated distributing


Richland. plant.

Grand Forks.



La Moure.

Traill. 1060.70 Computation of the net pool obli


gation of each pool handler.

Computation of uniform price.



Marshall. 1060.80 Time and method of payment. 1060.81 Butterfat differential to producers.

(b) The “base zone" shall include that 1060.82 Location differentials to producers portion of the marketing area in the and on nonpool milk.

counties of Clay, Marshall, Norman, 1060.83 Producer-settlement fund.

Pennington, Polk, and Red Lake, all in 1060.84 Payments to the producer-settle

the State of Minnesota; and the counment fund.

ties of Cass, Grand Forks, and Traill, all 1060.85 Payments out of the producersettlement fund.

in the State of North Dakota. 1060.86 Adjustment of accounts.

§ 1060.3

Route. 1060.87 Marketing services.

“Route” means a delivery to a whole1060.88 Expense of administration.

sale or retail outlet either directly or AUTHORITY: The provisions of this part through a distributing facility such as a 1060 issued under secs. 1-19, 48 Stat. 31, as

distribution point, a plant store, or a amended; 7 U.S.C. 601-674.

vendor of a fluid milk product classified SOURCE: The provisions of this part 1060 as Class I pursuant to § 1060.41(a) (1), appear at 32 F.R. 13703, Sept. 30, 1967, unless other than a delivery to a pool plant or otherwise noted.

a nonpool plant.

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§ 1060.5 Chicago butter price.

mentally owned and operated institution

which is exempt from the provisions of "Chicago butter price" means the sim

this part pursuant to § 1060.60(b); and ple average as computed by the market

(e) A producer handler, or any person administrator of the daily wholesale sell

who operates an other order plant as deing prices (using the midpoint of any

scribed in § 1060.61; price range as one price) per pound of Grade A (92-score) bulk creamery butter § 1060.11 Producer-handler. at Chicago as reported during the month

Producer-handler means any person by the Department.

who meets all of the following conditions: DEFINITIONS OF PERSONS

(a) Operates a dairy farm and a dis

tributing plant; § 1060.8 Producer.

(b) Receives no milk during the month "Producer” means any person, other from other dairy farmers or fluid milk than a producer-handler as defined in

products from sources other than pool any order (including this part) issued plants and not more than 3,000 pounds pursuant to the Act, who produces milk of milk and fluid milk products (includin compliance with the Grade A inspec- ing the milk equivalent of milk products tion requirements of a duly constituted other than fluid milk products which are health authority, which milk is (a) re- reconstituted into fluid milk products) ceived at a pool plant, or (b) diverted during the month from any source; as producer milk pursuant to § 1060.16. (c) Receives no milk products other § 1060.9 Cooperative association.

than fluid milk products from any source

for reconstitution into fluid milk prod"Cooperative association" means any

ucts except that received within the limicooperative marketing association of pro

tations set forth in paragraph (b) of this ducers which the Secretary determines,

section; after application by the association:

(d) Such person must provide proof (a) Is qualified under the provisions of the Act of Congress of February 18,

satisfactory to the market administrator

that (1) the care and management of all 1922, as amended, known as the “Capper

the dairy animals and other resources Volstead Act;"

necessary to produce the milk are the (b) Has full authority in the sale of milk of its members and is engaged in

personal enterprise of and at the personal making collective sales of or marketing

risk of such person, and (2) the opera

tion of the processing and distributing milk or its products for its members; and

business is the personal enterprise of and (c) Has its entire activities under the control of its members.

at the personal risk of such person.

(34 F.R. 18658, Nov. 22, 1969] § 1060.10 Handler.

DEFINITIONS OF MILK AND MILK PRODUCTS "Handler” means: (a) Any person (including any coop

§ 1060.15 Producer milk. erative association) in his capacity as "Producer milk” means all the skim the operator of one or more pool plants; milk and butterfat contained in Grade A

(b) Any cooperative association with milk: respect to producer milk which it causes (a) Received during the month at a to be diverted for its account from a pool pool plant directly from a producer or plant pursuant to § 1060.16;

a handler pursuant to § 1060.10(c); (c) Any cooperative association with (b) Diverted subject to the provisions respect to the milk of its member pro- of § 1060.16 from a pool plant to a nonducers which is delivered directly from pool plant other than an other order the farm to the pool plant of another plant or a producer-handler plant; or handler in a tank truck owned, operated (c) Received by a cooperative associaby, under contract to, or under the con- tion handler pursuant to $ 1060.10(c) trol of such cooperative association. The from producers in excess of the quantity milk for which a cooperative association delivered to pool plants. is a handler pursuant to this paragraph shall be deemed to have been received at

§ 1060.16 Diverted milk. the location of the pool plant to which it “Diverted milk” means, for any month, was delivered;

milk produced by a dairy farmer which (d) Any person who operates a par- a pool plant handler or a handler purtially regulated distributing plant. This suant to § 1060.10(b) caused to be moved definition shall not apply to a govern

from the farm to a nonpool plant (other

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than the plant of a producer-handler) if such movement is specifically reported and the conditions of paragraphs (a) or (b), and (c) of this section have been met. Such milk shall be deemed to have been received by the diverting handler at the location of the nonpool plant to which diverted in applying $$ 1060.53 and 1060.82. The diversion of producer milk is subject to the following conditions:

(a) During March through June a cooperative association handler pursuant to § 1060.10(b) may divert for its account without limit the milk of any member producer. During the months of July through February such handler may divert an aggregate quantity not exceeding 50 percent of the milk of all such producers whose milk has been received at a pool plant(s) for at least 3 days during the month.

(b) During March through June a handler in his capacity as the operator of a pool plant may divert for his account without limit the milk of any producer, other than a member of a cooperative association which has diverted milk pursuant to paragraph (a) of this section. During the months of July through February such handler may divert an aggregate quantity not exceeding 50 percent of the milk of all such producers whose milk has been received at his pool plant(s) for at least 3 days during the month.

(C) In the event milk receipts from dairy farmers are diverted in excess of the applicable percentages pursuant to paragraphs (a) and (b) of this section the diverting handler shall specify the dairy farmers whose milk was overdiverted. Only the milk of such dairy farmer(s) which is received at a pool plant during the month shall be producer milk for such month. § 1060.17 Other source milk.

“Other source milk” means all skim milk and butterfat contained in or represented by:

(a) Fluid milk products received from any source except:

(1) Producer milk;

(2) Fluid milk products received from pool plants; or

(3) Inventory of fluid milk products on hand at the beginning of the month; and

(b) Products, other than fluid milk products, received from any source (including those produced at the plant)

which are reprocessed or converted into or combined with another product in the plant during the month, and any disappearance of products other than fluid milk products not otherwise accounted for. 8 1060.18 Fluid milk product.

"Fluid milk product" means milk, skim milk, flavored milk, filled milk, concentrated milk, buttermilk, milk drinks (plain or flavored), sour cream and sour cream products labeled Grade A, cream or any mixture in fluid form of cream and milk or skim milk. The term includes these products in fluid, frozen, fortified (including “dietary” milk products) or reconstituted form but does not include sterilized products in hermetically sealed containers and such products as yogurt, eggnog, aerated cream in dispensers, ice cream mix, frozen dessert mix and evaporated or condensed milk or skim milk. This definition shall not include a product which contains 6 percent or more nonmilk fat (or oil). (34 F.R. 18658, Nov. 22, 1969) § 1060.19 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 nonfat milk solids), with or without milkfat, so that the product (including stabilizers, emulsifiers or flavoring) resembles milk or any other fluid milk product; and contains less than 6 percent nonmilk fat (or oil). (34 F.R. 18658, Nov. 22, 1969]


“Plant” means the land, buildings, facilities, and equipment constituting a single operating unit or establishment at which milk or milk products (including filled milk) are received, processed and/or packaged. Separate facilities used only as a reload point for transferring bulk milk or filled milk from one tank truck to another shall not be a plant under this definition. Facilities used only as a distribution point for storing fluid milk products in transit on routes shall not be a plant under this definition. (34 F.R. 18658, Nov. 22, 1969) § 1060.21 Distributing plant.

“Distributing plant” means a plant that is approved by an appropriate health authority for the processing or

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packaging of Grade A milk and from trator in writing that such plant not which fluid milk products are disposed be a pool plant, such nonpool status of during the month on routes.

to be effective the first month follow

ing such notice and thereafter until the § 1060.22 Supply plant.

plant qualifies as a pool plant on the “Supply plant” means a plant from basis of shipments. which a fluid milk product that is

(32 F.R. 13703, Sept. 30, 1967, as amended at acceptable to the appropriate health au- 34 F.R. 18658, Nov. 22, 1969) thority for distribution in the marketing

§ 1060.24 Nonpool plant. area as Grade A is moved during the month to a distributing plant.

“Nonpool plant” means any milk or

filled milk receiving, manufacturing or § 1060.23 Pool plant.

processing plant other than a pool plant. “Pool plant” means any plant meeting The following categories of nonpool the conditions of paragraph (a) or (b) plants are further defined as follows: of this section except the plant of a (a) "Other order plant” means handler exempted pursuant to § 1060.60 plant that is fully subject to the pricing and § 1060.61: Provided, That if a por- and pooling provisions of another order tion of a plant is physically separated issued pursuant to the Act. from the Grade A portion of such plant, (b) “Producer-handler plant” means is operated separately and is not ap- a plant operated by a producer-handler proved by any health authority for the as defined in any order (including this receiving, processing, or packaging of any part) issued pursuant to the Act. fluid milk product for Grade A disposi- (c) “Partially regulated distributing tion, it shall not be considered as part plant” means a nonpool plant that is of a pool plant pursuant to this section. neither an other order plant nor a pro

(a) A distributing plant from which ducer-handler plant from which fluid during the month there is disposed: milk products in consumer-type pack

(1) As Class I milk, except filled milk, ages or dispenser units are distributed on on routes in the marketing area not less routes in the marketing area during the than 15 percent of Gradt á milk receipts month. at such plant; and

(d) “Unregulated supply plant” means (2) As Class I milk, except filled milk, a nonpool plant from which fluid milk on routes or by transfer to another plant products are shipped during the month and classified as Class I pursuant to to a distributing plant, and is neither an § 1060.44 not less than the applicable per- other crder piant nor a producer-handler centage of such plant's receipts of plant. Grade A milk:

(32 F.R. 13703, Sept. 30, 1967, as amended at (i) March through June, 20 percent; 34 F.R. 18659, Nov. 22, 1969)

(ii) July through February, 25 percent: Provided, That all distributing

MARKET ADMINISTRATOR plants operated by a handler may be 1060.32 Additional duties of the marconsidered as one plant for the purpose ket administrator. of meeting the applicable percentage requirement of this subparagraph if the

In addition to the duties specified in handler submits a written request to the

§ 1000.3(c), of this chapter, the market market administrator prior to the de

administrator shall perform the followlivery period for which such considera

ing duties: tion is requested; and

(a)-(i) [Reserved] (b) A supply plant from which not

(j) Publicly announce on or before: less than 25 percent of its producer

(1) The 6th day of each month, the receipts at such plant during the month

Class I price and butterfat differential is shipped as fluid milk products, except

for the month computed pursuant to filled milk, to pool plants qualified pur

$ $ 1060.51 (a) and 1060.52(a), respecsuant to paragraph (a) of this section: tively; and the Class II price and butterProvided. That a supply plant which

fat differential for the immediately prequalified pursuant to this paragraph in

ceding month computed pursuant to each of the immediately preceding

$ $ 1060.51 (b) and 1060.52(b), respecmonths of August through November tively; and shall be a pool plant for the months of (2) The 12th day of each month, the March through June unless the plant uniform price and the butterfat differoperator requests the market adminis- ential computed pursuant to $$ 1060.71

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and 1060.81, respectively, both applica- erates a pool plant(s) shall report for ble to milk delivered during the immedi- each such plant to the market adminisately preceding month;

trator in the detail and on forms pre(k) On or before the 12th day of each scribed by the market administrator as month, report to each cooperative asso- follows: ciation which so requests the amount and (a) The receipts at each plant of milk class utilization of milk received by each from each producer (including such hanhandler during the immediately preced- dlers' own production), the average buting month from such cooperative asso- terfat test, the pounds of butterfat ciation in its capacity as a handler pur- contained therein, the number of days on suant to § 1060.10(c) and directly from which milk was received from such promembers of such cooperative associa- ducer, and the total quantity of milk and tion. For the purpose of this report the butterfat received from each handler milk so received shall be prorated to each pursuant to § 1060.10(c); class in proportion to the utilization by (b) The quantities of skim milk and such handler in each class remaining af- butterfat contained in (or used in the ter allocation pursuant to § 1060.46(a) production of) fluid milk products re(1) through (10) and the correspond- ceived from other pool plants; ing steps of $ 1060.46(b); and

(c) The quantities skir milk and (1) Whenever required for purpose of butterfat contained in receipts of other allocating receipts from other order source inilk; plants pursuant to $ 1060.46(a) (9) and (d) The utilization of skim milk and the corresponding step of $ 1060.46(b), butterfat required to be reported purthe market administrator shall estimate suant to this section; and publicly announce the utilization (to (e) A separate statement showing the the nearest whole percentage) in each disposition of fluid milk products on class during the month of skim milk and routes in the marketing area and a statebutterfat, respectively, in producer milk ment showing separately in-area and of all handlers. Such estimate shall be outside area route disposition of filled based upon the most current available milk; data and shall be final for such purpose; (f) The pounds of skim milk and

(m) Report to the market adminis- butterfat contained in all fluid milk trator of the other order, as soon as pos- products on hand, both in bulk and in sible after the report of receipts and packages, at the beginning and at the utilization for the month is received from end of the month; a handler who has received fluid milk (g) Such other information with reproducts from an other order plant, the spect to receipts and utilization as the classification to which such receipts are

market administrator may prescribe; and allocated pursuant to g 1060.46 pursuan: (h) Each handler specified in § such report, and thereafter any change

10(d) who operates a partially reguin such allocation required to correct lated distributing plant shall report errors disclosed in verification of such as required in this section, except that report; and

receipts of Grade A milk from dairy (n) Furnish to each handler operating farmers shall be reported in lieu of those a pool plant who has shipped fluid milk in producer milk. Such report shall inproducts to an other order plant, the

clude a separate statement showing the classification to which the skim milk and

quantity of reconstituted skim milk in butterfat in such fluid milk products were

fluid milk products disposed of on routes allocated by the market administrator of in the marketing area. the other order on the basis of the report

(32 F.R. 13703, Sept. 30, 1967, as amended at of the receiving handler; and, as neces- 34 F.R. 18659, Nov. 22, 1969] sary, any changes in such classification

§ 1060.36 Payroll reports. arising in the verification of such report. (32 F.R. 13703, Sept. 30, 1967, as amended at On or before the 20th day after the end 36 F.R. 9850, May 29, 1971)

of each month each handler, except a REPORTS

producer-handler or a handler making

payments pursuant to § 1060.62(b), shall § 1060.35 Reports of receipts and utili

submit to the market administrator his zation.

producer payroll (or in the case of a On or before the 7th day after the end handler making payments pursuant to of each month each handler who op- § 1060.62(a), his payroll for dairy farm

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