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on or before the end of such period, be designated as a supply plant for the following months of February through September.

[28 F.R. 11767, Nov. 5, 1963, as amended at 34 F.R. 18711, Nov. 22, 1969]

§ 1108.10 Pool plant.

"Pool plant" means a distributing plant, or a supply plant, except a plant of a producer-handler.

§ 1108.11 Nonpool plant.

"Nonpool plant" means any milk or filled milk receiving, manufacturing or processing plant other than a pool plant. The following categories of nonpool plants are further defined as follows:

(a) "Other order plant" means a plant that is fully subject to the pricing and pooling provisions of another order issued pursuant to the Act.

(b) "Producer-handler plant" means a plant operated by a producer-handler as defined in any order (including this part) issued pursuant to the Act.

(c) "Partially regulated distributing plant" means a plant that is neither an other order plant nor a producer-handler plant, from which fluid milk products in consumer-type packages or dispenser units are distributed on routes in the marketing area during the month.

(d) "Unregulated supply plant" means a nonpool plant from which fluid milk products are shipped during the month to a pool plant qualified pursuant to § 1108.10 and which is not an other order plant nor a producer-handler plant. [34 F.R. 18711, Nov. 22, 1969]

§ 1108.12 Handler.

"Handler" means: (a) A cooperative association with respect to milk of producers diverted for the account of such association from a pool plant to a nonpool plant in accordance with the provisions of § 1108.6; or

(b) Any person in his capacity as the operator of one or more approved plants: Provided, That if a person operates more than one pool plant he may, upon written application to the market administrator, be considered as a separate handler for the month with respect to one or more of his pool plants if no fluid milk products or producers are transferred during the month between such plants(s) and other pool plant(s) of such handler.

bers which is delivered to the pool plant of another handler in a tank truck owned or operated by or under contract to such cooperative association if the cooperative association notifies the market administrator and the handler to whom the milk is delivered, in writing, that it will be the handler for such milk for the month, such cooperative handler status to be effective the first day of the month following receipt by the market administrator of such notice and to continue until the first day of the month following receipt of a request to discontinue such cooperative handler status. Milk so delivered shall be considered to have been received by the cooperative association at the plant to which delivered and then transferred to the handler operating the plant.

(c) Any cooperative association with respect to the milk of its producer mem

(d) Any person who operates a partially regulated distributing plant. [28 F.R. 11767, Nov. 5, 1963, as amended at 34 F.R. 18711, Nov. 22, 1969]

§ 1108.13 Cooperative association.

(b) To have and to be exercising full authority in the sale of milk of its members.

§ 1108.14

Producer-handler.

"Producer-handler" means any person who operates a dairy farm and a distributing plant which during the month has no other source milk, producer milk or milk received from a cooperative association as a handler pursuant to § 1108.12(c).

§ 1108.15

Producer milk.

"Producer milk" shall be that skim milk or butterfat for each handler's account in milk (in an amount determined by weights and measurements for individual producer's deliveries, as taken at the farm in the case of milk moved from the farm in a bulk tank truck) which is received pursuant to paragraphs (a) and (b) of this section and diverted pursuant to § 1108.6 as follows:

(a) Received directly from producers' farms at a pool plant by the operator of the pool plant (except that for which a cooperative association is a handler

"Cooperative association" means any cooperative association of producers which the Secretary determines:

(a) To be qualified under the provisions of the Act of Congress of February 18, 1922, as amended, known as the "Capper-Volstead Act"; and

pursuant to § 1108.12c) or diverted by the pool plant operator pursuant to § 1108.6.

(b) Received directly from producers' farms for its account by a cooperative association in its capacity as a handler pursuant to § 1108.12 (c) or diverted for its account pursuant to § 1108.6.

§ 1108.16 Fluid milk product.

"Fluid milk product" means milk, skim milk, buttermilk, flavored milk, flavored milk drinks, filled milk, yogurt, cream, or any mixture in fluid form of milk, skim milk and cream except frozen cream, aerated cream, ice cream mix, eggnog and sterilized products in hermetically sealed containers. Sour cream mixtures to which cheese or any food substance other than a milk product has been added shall be considered as a fluid milk product only if disposed of under a Grade A label. This definition shall not include a product which contains 6 percent or more nonmilk fat (or oil). (34 F.R. 18711, Nov. 22, 1969]

§ 1108.17 Other source milk.

"Other source milk" means all skim milk and butterfat contained in: (a) Receipts during the month of fluid milk products except (1) fluid milk products received from pool plants, or (2) producer milk and milk from a cooperative association in its capacity as a handler pursuant to § 1108.12(c); and (b) products, other than fluid milk products, from any source (including those produced at the plant) which are processed or converted to another product in the plant during the month.

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§ 1108.18 Base milk.

"Base milk" means milk received by handlers from a producer during any of the months of February through July 1964 and March through July thereafter, which is not in excess of such producer's base computed pursuant to § 1108.91. § 1108.19 Excess milk.

"Excess milk” means milk received by handlers from a producer during any of the months of February through July 1964 and March through July thereafter, which is in excess of the base milk of such producer for such month, and shall include all milk from a producer for whom no base can be computed pursuant to 1108.91.

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(a)(g) [Reserved]

(h) on or before the 12th day after the end of each month, report to each cooperative association which so requests, the percentage of producer milk delivered by members of such association which was used in each class by each handler receiving such milk. For the purpose of this report the milk so received shall be prorated to each class in accordance with the total utilization of producer milk by such handler;

(i) On or before the 11th day after the end of each of the months March through July, the market administrator shall notify each handler of the amount of base milk and excess milk received from each producer.

(j) [Reserved]

(k) On or before the date specified publicly announce, and mail to each hanIdler at his last known address a notice of the following:

(1) The 5th day of each month, the Class I milk price and the Class I butterfat differential, both for the current month; and the Class II milk price and the Class II butterfat differential, both for the preceding month; and

(2) The 11th day of each month, the uniform price, and the producer butterfat differential, both for the preceding month.

(1) Whenever required for purpose of allocating receipts from other order plants pursuant to § 1108.46 (a) (8) and the corresponding step of § 1108.46 (b), the market administrator shall estimate and publicly announce the utilization (to the nearest whole percentage) in each class during the month of skim milk and butterfat, respectively, in producer milk of all handlers. Such estimate shall be based upon the most current available data and shall be final for such purpose;

(m) Report to the market administrator of the other order, as soon as possible after the report of receipts and utilization for the month is received from a handler who has received fluid milk products from an other order plant, the classification to which such receipts are allocated pursuant to § 1108.46 pursuant to such report, and thereafter any change in such allocation required to correct errors disclosed in verification of such report; and

(n) Furnish to each handler operating a pool plant who has shipped fluid milk products to an other order plant, the classification to which the skim milk and butterfat in such fluid milk products were allocated by the market administrator of the other order on the basis of the report of the receiving handler; and, as necessary, any changes in such classification arising in the verification of such report.

[28 F.R. 11767, Nov. 5, 1963, as amended at 29 F.R. 10983, July 30, 1964; 36 F.R. 9854, May 29, 1971]

REPORTS

§ 1108.30 Reports of sources and utili

zation.

On or before the 7th day after the end of each month each handler, except a producer-handler, shall report for each of his approved plants for such month to the market administrator in the detail and on forms prescribed by the market administrator as follows:

(a) The quantities of skim milk and butterfat contained in:

(4) Inventories of fluid milk products on hand at the beginning of the month; and

(1) Producer milk;

(2) Fluid milk products received from other pool plants and milk received from a cooperative association in its capacity as a handler pursuant to § 1108.12(c).

(3) Other source milk;

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which milk was received from such producer, if less than the entire month, (iv) the average butterfat content of such milk, and (v) the net amount of such handler's payment to the producer, together with the price paid and the amount and nature of any deductions;

(3) On or before the first day other source milk is received in the form of a fluid milk product at his pool plant(s), his intention to receive such product, and on or before the last day such product is received, his intention to discontinue receipt of such product;

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§ 1108.41 Classes of utilization.

Subject to the conditions set forth in §§ 1108.42 through 1108.46, the classes of utilization shall be as follows:

(a) Class I milk. Class I milk shall be all skim milk and butterfat: (1) Disposed of in the form of fluid milk products except:

(1) Fluid milk products classified as Class II pursuant to paragraphs (b) (3), (4) and (7) of this section; and

(ii) Fluid milk products which are fortified with additional milk solids shall be Class I in an amount equal only to

the weight of an equal volume of an unfortified product of the same butterfat content; and

(2) Not specifically accounted for as Class II utilization.

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

(1) Used to produce any product other than a fluid milk product;

(2) Contained in inventories of fluid milk products on hand at the end of the month;

(3) In fluid milk products disposed of and used for livestock feed or in fluid milk products which are dumped, if the market administrator has been notified in advance and afforded the opportunity to verify such dumping;

(4) The weight of skim milk in fortified fluid milk products which is not classified as Class I pursuant to paragraph (a) (1) (ii) of this section;

(5) In shrinkage of skim milk and butterfat, respectively, allocated pursuant to § 1108.42 (b) (1) but not in excess of:

(i) Two percent of milk received at a pool plant directly from producers except milk diverted pursuant to § 1108.6; plus

(ii) Two percent of milk received from a cooperative association handler pursuant to § 1108.12 (c), if the handler operating the pool plant files with the market administrator in writing, prior to the first day of the month, notice that he is purchasing such milk for the month on the basis of average farm tests and farm weights determined by farm bulk tank calibrations; plus

(iii) One and one-half percent of milk received in bulk from pool plants of other handlers or received from cooperative associations pursuant to § 1108.12(c) unless two percent shrinkage is assigned pursuant to subdivision (ii) of this subparagraph; plus

(iv) One and one-half percent of receipts of fluid milk products in bulk from an other order plant exclusive of the quantity for which Class II utilization was requested by the operator of such plant and the handler; plus

(v) One and one-half percent of receipts of fluid milk products in bulk from unregulated supply plants, exclusive of the quantity for which Class II utilization was requested by the handler; less

(vi) One and one-half percent of milk disposed of in bulk to other plants; and less

(vii) One and one-half percent of milk disposed of to plants by a cooperative association handler pursuant to § 1108.12 (c) unless two percent shrinkage is assigned pursuant to subdivision (ii) of this subparagraph;

(6) In shrinkage allocated to other source milk pursuant to § 1108.42 (b) (2); and

(7) The utilization of which is established as disposed of in bulk to bakeries, candy or soup manufacturers, and other commercial food manufacturing establishments which do not dispose of fluid milk products.

[28 F.R. 11767, Nov. 5, 1963, as amended at 29 F.R. 10984, July 30, 1964]

§ 1108.42 Shrinkage.

The market administrator shall allocate shrinkage over a handler's receipts as follows:

(a) Compute the total shrinkage of skim milk and butterfat, respectively for each handler; and

(b) Prorate the resulting amounts between:

(1) The maximum pounds of skim milk and butterfat pursuant to § 1108.41(b) (5) divided by 0.02; and

(2) The pounds of skim milk and butterfat in other source milk received in the form of bulk fluid milk products, exclusive of that specified in § 1108.41(b) (5).

[28 F.R. 11767, Nov. 5, 1963, as amended at 29 F.R. 10984, July 30, 1964]

§ 1108.44 Transfers.

Skim milk or butterfat in the form of a fluid milk product shall be classified:

(a) At the utilization indicated by the operators of both plants, or by the handler pursuant to § 1108.12 (c) and the plant operator, otherwise as Class I milk, if transferred from a pool plant to the pool plant of another handler, or if received at a pool plant from a handler pursuant to § 1108.12(c), except as provided in paragraph (f) of this section, subject in either event to the following conditions:

(1) The skim milk or butterfat so assigned to either class shall be limited to the amount thereof remaining in such class in the transferee plant after computations pursuant to § 1108.46 (a) (8) and the corresponding step of § 1108.46 (b);

be allocated pursuant to § 1108.46 (a) (3) and the corresponding step of § 1108.46 (b), the skim milk and butterfat so transferred shall be classified so as to allocate the least possible Class I utilization to such other source milk; and

(2) If the transferor plant received during the month other source milk to

(3) If the transferor handler received during the month other source milk to be allocated pursuant to § 1108.46 (a) (7) or (8) and the corresponding steps of § 1108.46 (b), the skim milk and butterfat so transferred up to the total of such receipts shall not be classified as Class I milk to a greater extent than would be applicable to a like quantity of such other source milk received at the transferee plant;

(b) As Class I milk, if transferred from a pool plant to a producer-handler;

(c) As Class I milk, if transferred or diverted in the form of milk or skim milk to a nonpool plant that is neither an other order plant nor a producerhandler plant, located more than 250 miles by the shortest hard-surfaced highway distance as determined by the market administrator, from the plant from which transferred or diverted;

(d) Skim milk and butterfat transferred in bulk form as cream to a nonpool plant that is neither an other order plant nor a producer-handler plant shall be classified Class I milk unless, (1) the transferring handler claims classification in Class II milk in his report submitted to the market administrator pursuant to § 1108.30, (2) the operator of the nonpool plant maintains books and records showing the utilization of all skim milk and butterfat at such plant which are made available if requested by the market administrator for the purpose of verification, and (3) such cream is not disposed of by the transferee plant under Grade A label.

(e) As Class I milk, if transferred or diverted in the form of bulk milk or skim milk to a nonpool plant that is neither an other order plant nor a producer-handler plant, located not more than 250 miles, by the shortest highway distance as determined by the market administrator, from the plant from which transferred or diverted, unless the requirements of subparagraphs (1) and (2) of this paragraph are met, in which case the skim milk and butterfat so transferred or diverted shall be classified in accordance with the assignment resulting from subparagraph (3) of this paragraph:

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