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handler who has received fluid milk products from an other order plant, the classification to which such receipts are allocated pursuant to § 1061.46 pursuant to such report and thereafter any change in such allocation required to correct errors disclosed in verification of such report;

(1) 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;

(m) On or before the 20th day of each month, report to each cooperative association which so requests the amount and class utilization of milk received by each handler during the immediately preceding month from such cooperative association in its capacity as a handler pursuant to § 1061.13(c) and directly from members of such cooperative association. For the purpose of this report, the milk so received shall be prorated to each class in proportion to the utilization by such handler in each class remaining after allocation pursuant to § 1061.46(a) (1) through (10) and the corresponding steps of $ 1061.46(b). [34 F.R. 5909, Mar. 29, 1969, as amended at 36 F.R. 4777, Mar. 12, 1971; 36 F.R. 9851, May 29, 1971]

REPORTS § 1061.30 Monthly reports of receipts

and utilization. On or before the eighth day after the end of each month each handler who operates a pool plant shall report to the market administrator in the detail and on forms prescribed by the market administrator for each of his pool plants as follows:

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

(1) Milk received from producers including milk received from farms and diverted pursuant to § 1061.17 for such handler's account;

(2) Producer milk received from handlers pursuant to § 1061.13(c);

(3) Fluid milk products received from other pool plants;

(4) Other source milk; and

(5) Inventories of fluid milk products at the beginning and end of the month, showing separately the quantities in bulk and in packages;

(b) The utilization of all skim milk and butterfat required to be reported pursuant to this section, including a separate statement

howing the respective amounts of skim milk and butterfat disposed of as route disposition inside and outside the marketing area that are classified as Class I; and

(c) Such other information with respect to the receipts and utilization of skim milk and butterfat as the market administrator may prescribe. [34 F.R. 5909, Mar. 29, 1969, as amended at 36 F.R. 4778, Mar. 12, 1971] $ 1061.31 Other reports.

(a) Each producer-handler and each handler who operates an other order plant shall report the receipts and disposition of skim milk and butterfat at such plant at such time and in such manner as the market administrator may require.

(b) Each handler pursuant to § 1061. 13 (b) and (c) shall report to the market administrator on or before the eighth day after the end of the month in detail and on forms prescribed by the market administrator, the total quantity of skim milk and butterfat in milk received by such handler from all producer member farms for which it is the handler pursuant to § 1061.13 (b) and (c); and

(1) For milk for which it is the handler pursuant to § 1061.13(b), report the quantities of skim milk and butterfat in milk diverted for its account during the month from each pool plant and the utilization of such skim milk and butterfat; and

(2) For milk for which it is the handler pursuant to § 1061.13 (c), report the quantities of skim milk and butterfat in milk delivered to each pool plant during the month.

(c) Each handler operating a partially regulated distributing plant shall report for each such plant the information required of pool plant operators pursuant to § 1061.30 substituting receipts from dairy farmers for producer milk.

(d) Each handler receiving milk from producers' farms shall report to the market administrator in detail and on forms prescribed by the market administrator on or before the 25th day after the end

of the month his producer payroll for (2) Represented by the nonfat milk such month which shall show for each solids added to a fluid milk product producer:

which is in excess of the weight of an (1) His identity;

equivalent volume of the fluid milk prod(2) The quantity of milk received uct prior to such addition; from such producer and the number of (3) Disposed of in bulk in the form of days on which milk was received from a fluid milk product to any commercial such producer;

food processing establishment where (3) The average butterfat content of food products are prepared only for consuch milk; and

sumption off the premises; (4) The net amount of such handler's (4) Dumped or disposed of for animal payment together with the price paid feed; and the amount and nature of any (5) In inventory of bulk fluid milk deductions.

products on hand at the end of the

month; CLASSIFICATION OF MILK

(6) In shrinkage of the skim milk and § 1061.40 Skim milk and butterfat to butterfat, respectively, assigned pursuant be classified.

to § 1061.42(a) but not in excess of: (a) The skim milk and butterfat which

(i) Two percent of producer milk deare required to be reported pursuant to

scribed in § 1061.16(a) and producer milk $ $ 1061.30 and 1061.31 shall be classified

diverted pursuant to § 1061.17(b) by a each month by the market administra

pool plant operator; tor pursuant to the provisions of

(11) Plus 1.5 percent of milk received in $$ 1061.41 through 1061.46; and

bulk tank lots from other pool plants; (b) If any water contained in the milk

(iii) Plus 1.5 percent of producer milk from which a product is made is re

described in § 1061.16(b) except that if moved before the product is utilized or

the handler operating the pool plant files disposed of by the handler, the pounds

notice with the market administrator of skim milk utilized or disposed of in

that he is purchasing such milk on the such product shall be considered to be

basis of farm weights, the applicable pera quantity equivalent to the nonfat milk

centage shall be 2 percent; solids contained in such product plus all

(iv) Plus 1.5 percent of milk received the water originally associated with such

in bulk tank lots from other order plants solids.

exclusive of the quantity for which Class

II use was requested by the operators of § 1061.41 Classes of utilization.

both plants; Subject to the conditions set forth in (v) Plus 1.5 percent of milk in bulk $$ 1061.42 through 1061.46, inclusive, the

tank lots from unregulated supply plants classes of utilization shall be as follows: exclusive of the quantity for which Class (a) Class I milk. Class I milk shall be

II utilization was requested by the all skim milk and butterfat:

handler; (1) Disposed of as a fluid milk product

(vi) Less 1.5 percent of milk in bulk except as provided in subparagraphs (2),

tank lots transferred from pool plants to (3), and (4) of paragraph (b);

other plants; and (2) In inventory of fluid milk prod

(vii) Less 1.5 percent of producer milk ucts in packaged form on hand at the

diverted pursuant to § 1061.17(b) except end of the month; and

that if the operator of the plant to which (3) Not accounted for as Class II milk;

the milk is diverted accounts for such (b) Class II milk. Class II milk shall

milk on the basis of farm weights, the be all skim milk and butterfat:

applicable percentage shall be 2 percent; (1) Used to produce butter, butteroil,

(7) In shrinkage of skim milk and anhydrous milkfat, plain or sweetened

butterfat allocated pursuant to § 1061.42 condensed milk or skim milk, and con

(b); and densed buttermilk; nonfat dry milk, dry

(8) In shrinkage of skim milk and whole milk, dried buttermilk, dried whey,

butterfat, respectively, resulting from and blends of dried milk products in

milk for which the cooperative associacluding dry ice cream mix; cheese and

tion is the handler pursuant to § 1061.13 cheese foods; ice cream, ice milk and

(b) and (c) not being delivered to nonfrozen desserts including mixes for freez

pool plants and pool plants, but not in ing; sterile products in hermetically

excess of one-half percent of the quansealed metal or glass containers;

tity received by the cooperative associa

tion from producers as determined by 57

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farm weights exclusive of the quantity is not an other order plant, a producerfor which farm weights are used as the handler plant or an exempt governmental basis of receipt at the plant to which plant unless the requirements of subdelivered.

paragraphs (1) and (2) of this para§ 1061.42 Shrinkage.

graph are met, in which case the skim

milk and butterfat so transferred or diThe market administrator shall pro- verted shall be classified in accordance rate shrinkage of skim milk and butter- with the assignment resulting from subfat, respectively, in producer milk and

paragraph (3) of this paragraph: in other source milk at each pool plant (1) The transferring or diverting han. between the following:

dler claims classification in Class II (a) The net quantity of producer milk in his report submitted pursuant to and other fluid products specified in § 1061.30 or $ 1061.31; § 1061.41(b) (6); and

(2) The operator of such nonpool plant (b) Other source milk exclusive of maintains books and records showing the that specified in § 1061.41(b) (6).

utilization of all skim milk and butterfat § 1061.44 Transfers.

received at such plant which are made

available if requested by the market adSkim milk or butterfat transferred in

ministrator for the purpose of verificathe form of a fluid milk product from a

tion: pool plant to another plant or diverted (3) The skim milk and butterfat so in such form to a nonpool plant shall be

transferred or diverted shall be classified classified:

on the basis of the following assignment (a) At the utilization indicated by the of utilization at such nonpool plant in operators of both plants, otherwise as

excess of receipts of packaged fluid milk Class I milk, if transferred from a pool

products from all pool plants and other plant to the pool plant of another han- order plants: dler, subject in either event to the fol

(i) Any route disposition in the marlowing conditions:

keting area, then any transfers from (1) The skim milk or butterfat so as

such nonpool plant to pool plants which signed to either class shall be limited to

are assigned to Class I ursuant to the amount thereof remaining in such

§ 1061.46(a) (8) and the corresponding class in the transferee plant after com

step of $ 1061.46(b), shall be assigned putations pursuant to § 1061.46(a) (9)

first to the skim milk and butterfat in and the corresponding step of (b);

fluid milk products so transferred or (2) If the transferor plant received

diverted from pool plants, and thereduring the month other source milk to

after pro rata to such receipts from be allocated pursuant to § 1061.46(a) (4) other order plants; and the corresponding step of (b), the

(ii) Any route disposition in the skim milk and butterfat so transferred

marketing area of another order issued shall be classified so as to allocate the

pursuant to the Act, then any transfers least possible Class I utilization to such

from such nonpool plant to an other other source milk; and

order plant which are assigned to Class (3) If the transferor handler received

I pursuant to the provisions of such other during the month other source milk to be

order, shall be assigned first to receipts allocated pursuant to § 1061.46(a) (8) or

of fluid milk products from plants fully (9) and the corresponding steps of

regulated by such order, and thereafter § 1061.46(b), the skim milk and butter

pro rata to such receipts from pool plants fat so transferred up to the total of such

and other order plants not regulated by receipts shall not be classified as Class I

such order. milk to a greater extent than would be

(iii) Class I utilization in excess of applicable to a like quantity of such

that assigned pursuant to subdivisions other source milk received at the trans

(i) and (ii) of this subparagraph (excluferee plant;

sive of transfers of fluid milk products (b) As Class I milk, if transferred from

to pool plants and other order plants) a pool plant to a producer-handler;

shall be assigned first to remaining (c) As Class I milk if transferred from receipts from dairy farmers who the a pool plant in packaged form to a non- market administrator determines conpool plant that is not an other order stitute the regular source of supply for plant;

such nonpool plant and all remaining (d) As Class I milk if transferred or Class I utilization (including transfers diverted in bulk to a nonpool plant that of fluid milk products to pool plants and

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other order plants) shall be assigned pro by each handler and compute the total rata to unassigned receipts at such non- pounds of skim milk and butterfat in pool plant from all pool and other order each class for each handler as follows: plants; and

(a) The market administrator shall (e) As follows, if transferred or di- combine the receipts and utilization in verted to an other order plant in excess each of the respective classes at all pool of receipts from such plant in the same plants of a handler including diversions. category as described in subparagraph from such pool plants by the handler and (1), (2), or (3) of this paragraph:

shall allocate such combined utilization (1) If transferred in packaged form, pursuant to § 1061.46 and shall compute classification shall be in the classes to the obligation of such handler pursuant which allocated under the other order; to § 1061.70 based on the combined uti

(2) If transferred or diverted in bul's lization; and form, classification shall be in the classes (b) The market administrator shall alto which allocated under the other order locate pursuant to § 1061.46 and compute (including allocation under the condi- the cbligation pursuant to § 1061.70 of a tions set forth in subparagraph (3) of cooperative association on producer milk this paragraph);

pursuant to § 1061.16 (c) and (d) for (3) If both the transferor and trans- which it is the handler pursuant to feree handlers so request in the reports § 1061.13 (b) and (c) separately from of receipts and utilization filed with the operations of any pool plant operated their respective market administrators, by such cocperative association. transfers or diversions in bulk form shall

§ 1061.46 Allocation of skim milk and be classified as Class II to the extent of

butterfat classified.
the Class II utilization (or comparable
utilization under such other order)

After making the computations puravailable for such assignment pursuant

suant to § 1061.45, the market administo the allocation provisions of the trans

trator shall determine the classification feree order;

of producer milk for each handler as (4) If information concerning the

follows: classification to which allocated under

(a) Skim milk shall be allocated in the the other order is not available to the

following manner: market administrator for purposes of

(1) Substract from the total pounds establishing classification pursuant to

of skim milk classified: this paragraph, classification shall be as

(i) From Class I the pounds of skim Class I, subject to adjustment when

milk in receipts of packaged fluid milk such information is available:

products from an unregulated supply (5) For purposes of this paragraph,

plant to the extent that an equivalent if the transferee order provides for

amount of skim milk disposed of to such more than two classes of utilization,

plant by handlers under this or any other milk allocated to a class consisting pri

order issued pursuant to the Act is classimarily of fluid products shall be classi- fied and priced as Class I milk and is not fied as Class I, and milk allocated to

used as an offset on any other payment other classes shall be classified as Class

obligation under this or any other order; II; and

(ii) From Class II the pounds of skim (6) If the form in which any fluid

milk classified as Class II pursuant to milk product is transferred to an other

§ 1061.41(b) (6); order plant is not defined as a fluid milk

(2) Subtract from the pounds of skim product under such other order, classi

milk in each class the pounds of skim fication shall be in accordance with the

milk in fiuid milk products received in provisions of $ 1061.41; and

packaged form from other order plants (f) As Class I milk, if transferred or

as follows: diverted to an exempt governmental

(1) From Class II milk, the lesser of plant.

the pounds remaining or 2 percent of (34 F.R. 5909, Mar. 29, 1969, as amended at

such receipts; and 36 F.R. 4778, Mar. 12, 1971]

(ii) From Class I milk, the remainder § 1061.45 Computation of skim milk

of such receipts; and butterfat in each class.

(3) Subtract from

the remaining For each month the market adminis

pounds of skim milk in Class I, the trator shall correct mathematical and

pounds of skim milk in inventory of other obvious errors in the reports sub

packaged fluid milk products on hand mitted pursuant to $$ 1061.30 and 1061.31 at the beginning of the month;

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(4) Subtract in the order specified be- were not subtracted pursuant to sublow from the pounds of skim milk re- paragraph (1) (i) or (5) (i) of this maining in each class, in series beginning paragraph; with Class II, the pounds of skim milk in (9) Subtract from the pounds of skim each of the following:

milk remaining in each class, in the fol(i) Other source milk in a form other lowing order, the pounds of skim milk than that of a fluid milk product;

in receipts of fluid milk products in bulk (ii) Receipts of fluid milk products for from other order plant(s), in excess in which Grade A certification is not estab- each case of similar transfers to the same lished, or which are from unidentified plant, which were not subtracted pursources;

suant to subparagraph (5) (ii) of this (iii) Receipts of fluid milk products paragraph; from a producer-handler, as defined (i) In series beginning with Class II, under this or any other Federal order; the pounds determined by multiplying and

the pounds of such receipts by the larger (iv) Receipts of fluid milk products of the percentage of estimated Class II from an exempt governmental plant; utilization of skim milk announced for

(5) Subtract, in the order specified be- the month by the market administrator low, from the pounds of skim milk re- pursuant to § 1061.22(j) or the percentmaining in Class II, but not in excess of age that Class II utilization remaining such quantity:

is of the total remaining utilization of (i) The pounds of skim milk in receipts skim milk of the handler; and of fluid milk products from an unregu- (ii) From Class I milk, the remaining lated supply plant that were not sub- pounds of such receipts; tracted pursuant to subparagraph (1) (i) (10) Subtract from the pounds of of this paragraph;

skim milk remaining in each class the (a) For which the handler requests

pounds of skim milk received in fluid Class II utilization; or

milk products from pool plants of other

handlers according to the classification (b) The pounds of skim milk in re

assigned pursuant to § 1061.44(a); and ceipts which are in excess of the pounds

(11) If the pounds of skim milk reof skim milk determined by subtracting

maining in both classes exceed the from 125 percent of the pounds of skim

pounds of skim milk in producer milk, milk remaining in Class I milk the sum subtract such excess from the pounds of the pounds of skim milk in producer of skim milk remaining in each class in milk, receipts of fluid milk products from series beginning with Class II. Any pool plants of other handlers, and re- amount so subtracted shall be known as ceipts of fluid milk products in bulk from "overage"; other order plants; and

(b) Butterfat shall be allocated in ac(11) The pounds of skim milk, in re

cordance with the procedure outlined

for skim milk in paragraph (a) of this ceipts of fluid milk products in bulk from

section; an other order plant in excess of similar

(c) Combine the amounts of skim transfers to such plant, if Class II utili

milk and butterfat determined pursuant zation was requested by the operator of

to paragraphs (a) and (b) of this section such plant and the transferee handler; into one total for each class and deter

(6) Subtract from the pounds of skim mine the weighted average butterfat milk remaining in each class, in series content of producer milk in each class. beginning with Class II, the pounds of [34 F.R. 5909, Mar. 29, 1969, as amended at skim milk in inventory of bulk fluid milk

36 F.R. 4778, Mar. 12, 1971] products on hand at the beginning of the

MINIMUM PRICES month;

§ 1061.50 Basic formula price. (7) Add to the remaining pounds of skim milk in Class II milk the pounds

The basic formula price shall be the subtracted pursuant to subparagraph

average price per hundredweight for (1) (ii) of this paragraph;

manufacturing grade milk, f.o.b. plants

in Wisconsin and Minnesota, as reported (8) Subtract from the pounds of skim

by the U.S. Department of Agriculture milk remaining in each class, pro rata

for the month. Such price shall be adto such quantities, the pounds of skim

justed to a 3.5 percent butterfat basis by milk in receipts of fluid milk products a butterfat differential (rounded to the from unregulated supply plants which nearest one-tenth cent) computed at 0.12

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