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(1) The transferring or diverting agraph (a) of this section, skim milk and handler claims classification pursuant to butterfat transferred to the pool plant of the assignment set forth in subpara- another handler by a cooperative associgraph (3) of this paragraph in his re- ation which is a handler pursuant to port submitted to the market adminis- $ 1108.12(c) shall be classified pro rata trator pursuant to $ 1108.30 for the to the respective amounts remaining in month within which such transaction each class for such month at the pool occurred;

plant of the receiving handler after the (2) The operator of such nonpool computations pursuant to $ 1108.46(a) plant maintains books and records show- (9) and the corresponding step of ing the utilization of all skim milk and $ 1108.46(b); and butterfat received at such plant which (g) As follows, if transferred to an are made available if requested by the other order plant in excess of receipts market administrator for the purpose of from such plant in the same category as verification; and

described in subparagraph (1), (2) or (3) (3) The skim milk and butterfat so of this paragraph: transferred shall be classified on the (1) If transferred in packaged form, basis of the following assignment of uti- classification shall be in the classes to lization at such nonpool plant in excess which allocated as a fluid milk product of receipts of packaged fluid milk prod- under the other order; ucts from all pool plants and other order

(2) If transferred in bulk form, classiplants:

fication shall be in the classes to which (i) Any Class I utilization disposed of

allocated as a fluid milk product under on routes in the marketing area shall be

the other order (including allocation first assigned to the skim milk and but

under the conditions set forth in subterfat in the fluid milk products so trans

paragraph (3) of this paragraph); ferred or diverted from pool plants, next pro rata to receipts from other order

(3) If the operators of both the transplants and thereafter to receipts from

feror and transferee plants so request dairy farmers who the market admin

in the reports of receipts and utilization istrator determines constitute regular

filed with their respective market ad

ministrators, transfers in bulk form shall sources of supply of Grade A milk for

be classified as Class II to the extent such nonpool plant;

of the Class II utilization (or comparable (ii) Any Class I utilization disposed of

utilization under such other order) availon routes in the marketing area of an

able for such assignment pursuant to the other order issued pursuant to the Act

allocation provisions of the transferee shall be first assigned to receipts from

order; plants fully regulated by such order, next

(4) If information concerning the pro rata to receipts from pool plants and

classification to which allocated under other order plants not regulated by such

the other order is not available to the order, and thereafter to receipts from

market administrator for purposes of dairy farmers who the market admin

establishing classification pursuant to istrator determines constitute regular sources of supply for such nonpool plant;

this paragraph, classification shall be

as Class I, subject to adjustment when (iii) Class I utilization in excess of

such information is available; that assigned pursuant to subdivisions (i) and (ii) of this subparagraph shall

(5) For purposes of this paragraph, be assigned first to remaining receipts

if the transferee order provides for more

than two classes of utilization, skim milk from dairy farmers who the market ad

and butterfat allocated to a class conministrator determines constitute the

sisting primarily of fluid milk products regular source of supply for such non

shall be classified as Class I, and skim pool plant and Class I utilization in ex

milk and butterfat allocated to other cess of such receipts shall be assigned

classes shall be classified as Class II; and pro rata to unassigned receipts at such

(6) If the form in which any fluid nonpool plant from all pool and other order plants; and

milk product is transferred to an other (iv) To the extent that Class I utili- order plant is not defined as a fluid milk zation is not so assigned to it, the skim product under such other order, classimilk and butterfat so transferred shall fication shall be in accordance with the be classified as Class II milk;

provisions of g 1108.41. (f) If a specified utilization is not

(29 F.R. 10984, July 30, 1964, as amended at claimed by both handlers, subject to par- 34 F.R. 18712, Nov. 22, 1969]

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$ 1108.45 Computation of skim milk (v) Receipts of reconstituted skim milk and butterfat in each class.

in filled milk from other order plants For each month, the market adminis

which are regulated under an order protrator shall correct for mathematical and

viding for individual handler pooling to

the extent that reconstituted skim milk other obvious errors, the reports submit

is allocated to Class I at the transferor ted by each handler, pursuant to $ 1108.30 and compute the total pounds

plant; of skim milk and butterfat respectively,

(4) Subtract, in the order specified in Class I milk and Class II milk at all

below, from the pounds of skim milk reof the pool plants of such handler: Pro- maining in Class II, but not in excess vided, That the skim milk contained in

of such quantity, the pounds of skim any product utilized, produced or dis

milk in each of the following: posed of by the handler during the

(i) Receipts of fluid milk products month shall be considered to be an from an unregulated supply plant, that amount equivalent to the nonfat milk were not subtracted pursuant to subsolids contained in such product, plus all paragraph (3) (iv) of this paragraph: of the water originally associated with (a) For which the handler requests such solids.

Class II utilization; or $ 1108.46 Allocation of skim milk and

(b) Which are in excess of the pounds butterfat classified.

of skim milk determined by multiplying

the pounds of skim milk remaining in After making the computations pur- Class I milk by 1.25 and subtracting suant to $ 1108.45, the market adminis

the sum of the pounds of skim milk in trator shall determine the classification

producer milk, receipts from other pool of producer milk for each handler as plants, from cooperative associations as follows:

handlers pursuant to § 1108.12(c), and (a) Skim milk shall be allocated in

receipts in bulk from other order plants, the following manner:

that were not subtracted pursuant to (1) Subtract from the total pounds of subparagraph (3) (v) of this paragraph; skim milk in Class II the inds of skim

(ii) Receipts of fluid milk products in milk classified as Class II pursuant to bulk from an other order plant, that $ 1108.41(b) (5);

were not subtracted pursuant to sub(2) Subtract from the remaining

paragraph (3) (v) of this paragraph, in pounds of skim milk in each class the

excess of similar transfers to such plant, pounds of skim milk in fluid milk prod- if Class II utilization was requested by ucts received in packaged form from the operator of such plant and the other order plants, except that to be sub- handler; tracted pursuant to subparagraph (3) (5) Subtract from the pounds of (v) of this paragraph as follows:

skim milk remaining in each class, in (i) From Class II milk, the lesser of

series beginning with Class II, the the pounds remaining or two percent of

pounds of skim milk in inventory of such receipts; and

fluid milk products on hand at the be(ii) From Class I milk, the remainder of such receipts;

ginning of the month:

(6) Add to the remaining pounds of (3) Subtract in the order specified be

skim milk in Class II milk the pounds low from the pounds of skim milk re

subtracted pursuant to subparagraph maining in each class, in series begin

(1) of this paragraph;
ning with Class II, the pounds of skim
milk in each of the following:

(7) Subtract from the pounds of skim (i) Other source milk in a form other

milk remaining in each class, pro rata than that of a fluid milk product;

to such quantities, the pounds of skim

milk in receipts of fluid milk products (ii) Receipts of fluid milk products (except filled milk) for which Grade A cer

from unregulated supply plants which tification is not established, and receipts

were not subtracted pursuant to subof fluid milk products from unidentified

paragraphs (3) (iv) or (4) (i) of this sources; and

paragraph; (iii) Receipts of fluid milk products

(8) Subtract from the pounds of skim from a producer-handler, as defined

milk remaining in each class, in the folunder this or any other Federal order; lowing order, the pounds of skim milk

(iv) Receipts of reconstituted skim in receipts of fluid milk products in bulk milk in filled milk from unregulated sup

from an other order plant(s), in excess ply plants; and

in each case of similar transfers to the

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SE 1108 1108 thro proc $11

same plant, which were not subtracted ing the Class I prices from the effective pursuant to subparagraphs (3) (v) or (4) date hereof, the basic formula price shall (ii) of this paragraph:

not be less than $4.33. (i) In series beginning with Class II, [28 F.R. 11767, Nov. 5, 1963, as amended at the pounds determined by multiplying 33 F.R. 6525, Apr. 30, 1968; 33 F.R. 20008, the pounds of such receipts by the larger Dec. 31, 1968] of the percentage of estimated Class II

$ 1108.51

Class prices. utilization of skim milk announced for the month by the market administrator

Subject to the provisions of $$ 1108.52 pursuant to § 1108.27(1) or the percent

and 1108.53, the class prices per hunage that Class II utilization remaining

dredweight of milk containing 3.5 peris of the total remaining utilization of

cent butterfat shall be determined for skim milk of the handler; and

each month as follows: (ii) From Class I, the remaining

(a) Class 1 price. The Class I price pounds of such receipts;

shall be the basic formula price for the (9) Subtract from the pounds of skim

preceding month plus $1.74, plus 20 cents. milk remaining in each class the pounds

(b) Class II milk price. The Class II of skim milk received in fluid milk prod

milk price shall be the basic formula ucts from other handlers according to

price computed pursuant to $ 1108.50. the classification assigned pursuant to

[28 F.R. 11767, Nov. 5, 1963, as amended at $ 1108.44(a);

33 F.R. 6525, Apr. 30, 1968; 33 F.R. 20008, (10) Subtract, pro rata from the

Dec. 31, 1968; 35 F.R. 7283, May 9, 1970] pounds of skim milk remaining in each § 1108.52 Butterfat differential to hanclass, the pounds of skim milk to be clas

dlers. sified pursuant to § 1108.44(f); and

For milk containing more or less than (11) If the pounds of skim milk re

3.5 percent butterfat, the class prices maining in both classes exceed the

calculated pursuant to $ 1108.51 shall be pounds of skim milk in producer milk,

increased or decreased, respectively, for subtract such excess from the pounds of

each one-tenth percent butterfat at the skim milk remaining in each class in

appropriate rate determined as follows: series beginning with Class II. Any

(a) Class I price. Multiply the Chiamount so subtracted shall be known as

cago butter price for the previous month "overage";

by 0.12; (b) Butterfat shall be allocated in ac

(b) Class II price. Multiply the Chicordance with the procedure outlined for skim milk in paragraph (a) of this

cago butter price for the month by

0.115. section; and

(c) Combine the amounts of skim 8 1108.53 Location adjustments to hanmilk and butterfat determined pursuant

dlers. to paragraphs (a) and (b) of this sec- (a) For milk received from producers tion into one total for each class and

at a pool plant located more than 60 determine the weighted average butter

miles by shortest highway distance as fat content of producer milk in each

measured by the market administrator, class.

from the nearer of the County Court[29 F.R. 10985, July 30, 1964, as amended at

house in Arkadelphia, Arkansas, or the 34 F.R. 18712, Nov. 22, 1969]

State Capitol in Little Rock, Arkansas,
MINIMUM PRICES

which is classified as Class I milk or

assigned Class I location adjustment $ 1108.50 Basic formula price.

credit pursuant to paragraph (b) of this The basic formula price shall be the section and for other source milk to average price per hundredweight for which a location adjustment is applimanufacturing grade milk, f.o.b. plants cable, the price computed pursuant to in Wisconsin and Minnesota, as reported $ 1108.51(a) shall be reduced at the rate by the United States Department of Ag- of 1.5 cents for each 10 miles or fraction riculture for the month. Such price thereof that such plant is from the reshall be adjusted to a 3.5 percent butter- spective buildings designated above; and fat basis by a butterfat differential

(b) For purposes of calculating such rounded to the nearest one-tenth cent adjustment, transfers of fluid milk prodcomputed at 0.12 times the Chicago but- ucts between pool plants shall be aster price for the month. The basic for- signed Class I disposition at the transmula price shall be rounded to the near- feree plant, in excess of the sum of re. est full cent. For the purpose of comput- ceipts at such plant from producers and

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cooperative associations pursuant to to the market administrator at such time $ 1108.12(c), and the pounds assigned as and in such manner as the market adClass I to receipts from other order ministrator may require and allow plants and unregulated supply plants. verification of such reports by the marSuch assignment is to be made first to ket administrator. transferor plants at which no location (d) Each handler operating a plant. adjustment credit is applicable nd then specified in paragraph (a) of this section, in sequence beginning with the plant at if such plant is subject to the classificawhich the least location adjustment tion and pricing provisions of another would apply.

order which provides for individual [29 F.R. 10985, July 30, 1964)

handler pooling, shall pay to the market $ 1108.54 [Reserved]

administrator for the producer-settle

ment fund on or before the 25th day § 1108.55 Use of equivalent prices. after the end of the month an amount If for any reason a price quotation

computed as follows: required by this order for computing

(1) Determine the quantity of reconclass prices or for other purposes is not

stituted skim milk in filled milk disposed available in the manner prescribed, the

of on routes in the marketing area which market administrator shall use a price

was allocated to Class I at such other determined by the Secretary to be

order plant. If reconstituted skim milk equivalent to the price which is required.

in filled milk is disposed of from such

plant on routes in marketing areas regAPPLICATION OF PROVISIONS

ulated by two or more market pool orders, $ 1108.60 Producer-handlers.

the reconstituted skim milk assigned to

Class I shall be prorated according to Sections 1108.40 through 1108.46;

such disposition in each area. 1108.50 through 1108.53; 1108.61, 1108.62, 1108.70 through 1108.75; and 1108.80

(2) Compute the value of the quantity through 1108.87 shall not apply to a

assigned in subparagraph (1) of this producer-handler.

paragraph to Class I disposition in this

area, at the Class I price under this part $ 1108.61 Plants subject to other Fed. applicable at the location of the other eral orders.

order plant and subtract its value at the A plant specified in paragraphs (a)

Class II price. or (b) of this section shall be a nonpool [34 F.R. 18712, Nov. 22, 1969] plant for purposes of this part except as

f 1108.62 Obligations of handler operspecified in paragraphs (c) and (d).

ating a partially regulated distribut(a) Any distributing plant which ing plant. would otherwise be subject to the classification and pricing provisions of an

Each handler who operates a partially other order issued pursuant to the Act,

regulated distributing plant shall pay to unless a greater volume of Class I milk,

the market administrator for the proexcept filled milk, was disposed of from

ducer-settlement fund on or before the such plant during the six months period

25th day after the end of the month immediately preceding to retail or whole

either of the amounts (at the handler's sale outlets (except pool plants or non

election) calculated pursuant to parapool plants) in the Central Arkansas

graph (a) or (b) of this section. If the marketing area than in the marketing

handler fails to report pursuant to area regulated pursuant to such other

$ $ 1108.30(c) and 1108.31(c) the infororder.

mation necessary to compute the amount (b) Any supply plant which would

specified in paragraph (a) of this section, otherwise be subject to the classification

he shall pay the amount computed purand pricing provisions of another order

suant to paragraph (b) of this section: issued pursuant to the Act, unless such

(a) An amount computed as follows: plant qualified as a pool plant for each

(1) (i) The obligation that would have of the preceding months of August

been computed pursuant to § 1108.70 at through January.

such plant shall be determined as though

such plant were a pool plant. For pur(c) The operator of a plant specified in paragraph (a) or (b) of this section

poses of such computation, receipts at

such nonpool plant from a pool plant or shall, with respect to total receipts and an other order plant shall be assigned utilization or disposition of skim milk to the utilization at which classified at and butterfat at the plant, make reports the pool plant or other order plant and

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transfers from such nonpool plant to a other order plants, except that deducted
pool plant or an other order plant shall be under a similar provision of another
classified as Class II milk if allocated to order issued pursuant to the Act;
such class at the pool plant or other (3) Deduct the quantity of recon-
order plant and be valued at the weighted stituted skim milk in fluid milk products
average price of the respective order if disposed of on routes in the marketing
so allocated to Class I milk, except that area;
reconstituted skim milk in filled milk

(4) Combine the amounts of skim
shall be valued at the Class II price. milk and butterfat remaining into one
There shall be included in the obligation total and determine the weighted aver-
SO computed a charge in the amount
specified in § 1108.70(e) and a credit in

age butterfat content; and

(5) From the value of such milk at the amount specified in § 1108.82(b) (2) with respect to receipts from an un

the Class I price applicable at the loca

tion of the nonpool plant, subtract its regulated supply plant, except that the

value at the weighted average price apcredit for receipts of reconstituted skim milk in filled milk shall be at the Class II

plicable at such location (not to be less

than the Class II price) and add for the price, unless an obligation with respect

quantity of reconstituted skim milk specto such plant is computed as specified

ified in subparagraph (3) of this parabelow in this subparagraph; and (ii) If the operator of the partially

graph its value computed at the Class I regulated distributing plant so requests,

price applicable at the location of the and provides with his reports pursuant

nonpool plant less the value of such skim

milk at the Class II price. to $$ 1108.30(c) and 1108.31(c) similar reports with respect to the operations of

(29 F.R. 10985, July 30, 1964, as amended at

34 F.R. 18713, Nov. 22, 1969] any other nonpool plant which serves as a supply plant for such partially regu

DETERMINATION OF PRICES TO PRODUCERS lated distributing plant by shipments to $ 1108.70 Computation of the net pool such plant during the month equivalent obligation of each pool handler. to the requirements of $ 1108.9, with

The net pool obligation of each pool agreement of the operator of such plant

handler during each month shall be a that the market administrator may examine the books and records of such

sum of money computed by the market

administrator as follows: plant for purposes of verification of such

(a) Multiply the quantity of producreports, there will be added the amount

er milk in each class, as computed purof the obligation computed at such non

suant to $ 1108.46(c), by the applicable pool supply plant in the same manner

class prices (adjusted pursuant to and subject to the same conditions as

$$ 1108.52 and 1108.53); for the partially regulated distributing

(b) Add the amount obtained from plant. (2) From this obligation there will be

multiplying the pounds of overage de

ducted from each class pursuant to deducted the sum of (i) the gross pay

§ 1108.46(a) (11) and the corresponding ments made by such handler for Grade

step of $ 1108.46(b) by the applicable A milk received during the month from

class prices; dairy farmers at such plant and like pay

(c) Add the amount obtained by mulments made by the operator of a supply

tiplying the difference between the Class plant(s) included in the computations pursuant to subparagraph (1) of this II price for the preceding month and the

Class I price for the current month by paragraph, and (ii) any payments to the

the hundredweight of skim milk and producer-settlement fund of another or

butterfat subtracted from Class I pursuder under which such plant is also a

ant to § 1108.46(a) (5) and the correpartially regulated distributing plant.

(b) An amount computed as follows: sponding step of $ 1108.46(b);

(1) Determine the respective amounts (d) Add an amount equal to the difof skim milk and butterfat disposed of ference between the value at the Class I as Class I milk on routes in the market- price applicable at the pool plant and

the value at the Class II price, with reing area;

(2) Deduct the respective amounts of spect to skim milk and butterfat in other skim milk and butterfat received as source milk subtracted from Class I purClass I milk at the partially regulated suant to $ 1108.46(a)(3) and the cordistributing plant from pool plants and responding step of § 1108.46(b), except

compi band | by 8:

made | 8110 month.

(b) value puted

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