suant to § 1063.50 (c), and the Class II butterfat differential, pursuant

to § 1063.51(b) both for the preceding month; and

(2) The 10th day after the end of each month the uniform price pursuant to § 1063.72 and the producer butterfat differential pursuant to § 1063.81 for the preceding month.

re

(k) On or before the 10th day after the end of each month, report to each cooperative association, which so quests, the percentage of milk caused to be delivered by the cooperative association or its members to the pool plant(s) of each handler during the month, which was utilized in each class. For the purpose of this report, the milk so delivered shall be allocated to each class for each handler in the same ratio as all producer milk received by such handler during the month.

(1) [Reserved]

(m) Whenever required for purpose of allocating receipts from other order plants pursuant to § 1063.46(a)(8) and the corresponding step of § 1063.46(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;

(n) 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 § 1063.46 pursuant to such report, and thereafter any change in such allocation required to correct errors disclosed in verification of such report; and

(0) 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.

[25 F.R. 12987, Dec. 20, 1960, as amended at 28 F.R. 8193, Aug. 9, 1963; 29 F.R. 10935,

July 30, 1964; 29 F.R. 18008, Dec. 18, 1964; 31 F.R. 3190, Feb. 26, 1966; 36 F.R. 9851, May 29, 1971]

REPORTS

§ 1063.30 Reports of receipts and utili

zation.

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

(a) The quantities of skim milk and butterfat contained in receipts of producer milk;

(b) The quantities of skim milk and butterfat contained in fluid milk products received from other pool plants;

(c) The quantities of skim milk and butterfat contained in other source milk;

(d) The quantities of skim milk and butterfat contained in producer milk diverted to nonpool plants pursuant to § 1063.14.

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

(f) The utilization of all skim milk and butterfat required to be reported pursuant to this section, including a separate statement of the route disposition of Class I milk outside the marketing area and a statement showing separately in-area and outside area route disposition of filled milk; and

(g) Such other information with respect to his receipts and utilization of butterfat and skim milk as the market administrator may prescribe.

[25 F.R. 12987, Dec. 20, 1960, as amended at 28 F.R. 8193, Aug. 9, 1963; 31 F.R. 3190, Feb. 26, 1966; 34 F.R. 18664, Nov. 22, 1969] § 1063.31 Other reports.

(a) Each producer-handler shall make reports to the market administrator at such time and in such manner as the market administrator shall request;

(b) Each handler, except a producerhandler shall report to the market administrator in the detail and on forms prescribed by the market administrator on or before the 20th day after the end of the month for each of his pool plants his producer payroll for such month which shall show for each producer:

(1) His name and address;

(2) The total pounds of milk received from such producer;

(3) The number of days, if less than the entire month, for which milk was received from such producer;

(4) The average butterfat content of such milk;

(5) The net amount of such handler's payment together with the price paid and the amount and nature of any deductions; and

(c) Each handler specified in § 1063.12 (d) who operates a partially regulated distributing plant shall report as follows:

(1) As required pursuant to § 1063.30, except that receipts in Grade A milk shall be reported in lieu of those in producer milk; such report shall include a separate statement showing Class I disposition on routes in the marketing area of each of the following: skim milk and butterfat, respectively in fluid milk products and the quantity thereof which is reconstituted skim milk.

(2) As required in paragraph (b) of this section, if he wishes computations pursuant to § 1063.62(a) to be considered in computation of his obligation pursuant to § 1063.62. In such report payments to dairy farmers delivering Grade A milk shall be reported in lieu of payments to producers.

[29 F.R. 10935, July 30, 1964, as amended at 34 F.R. 18664, Nov. 22, 1969]

Subject to the conditions set forth in 1063.44 the classes of utilization shall be as follows:

(a) Class I milk. Class I milk shall be all skim milk (including concentrated and reconstituted skim milk) and butterfat:

(1) Disposed of in the form of a fluid milk product except:

(1) Any product fortified with added solids shall be Class I in an amount equal only to the weight of an equal volume of a like unmodified product of the same butterfat content; and

(ii) As classified pursuant to paragraph (b) (2) and (4) of this section; and

(2) Not accounted for as Class II milk. (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) Disposed of to wholesale bakeries candy manufacturers, soup companies, cr for livestock feed;

(3) Contained in inventory of fluid milk products on hand at the end of the month;

(4) Skim milk dumped if the market administrator has been notified in advance and afforded the opportunity of verifying such dumping;

(5) The weight of skim milk in fluid milk products which is excepted from Class I milk pursuant to paragraph (a) (1) (i) of this section;

(6) In shrinkage assigned pursuant to § 1063.42(b)(1) of the skim milk and butterfat, respectively, but not in excess of:

(1) 2 percent of producer milk (except producer milk diverted to a nonpool plant pursuant to § 1063.14); plus

(ii) 1.5 percent of milk received in bulk tank lots from other pool plants; plus

(iii) 1.5 percent of milk received in bulk tank lots from an other order plant, exclusive of the quantity for which Class II utilization was requested by the operators of both plants; plus

(iv) 1.5 percent of milk received in bulk tank lots from an unregulated supply plant exclusive of the quantity for which Class II utilization was requested by the handler; less

(v) 1.5 percent of milk transferred in bulk tank lots to other plants; and

(7) In shrinkage of skim milk and butterfat, respectively, assigned pursuant to § 1063.42(b) (2).

[29 F.R. 10936, July 30, 1964, as amended at 33 F.R. 10940, Aug. 1, 1968]

§ 1063.42 Shrinkage.

The market administrator shall allocate shrinkage at each pool plant as follows:

(a) Compute the total shrinkage of skim milk and butterfat respectively, at each pool plant; and

(b) Prorate the resulting amounts between the receipts of skim milk and butterfat respectively at such plant contained in:

(1) Net receipts specified in § 1063.41 (b) (6); and

(2) Receipts of other source milk in bulk fluid milk products exclusive of that specified in § 1063.41 (b) (6)

[33 F.R. 10940, Aug. 1, 1968]

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, otherwise as Class I milk, if transferred from a pool plant to the pool plant of another handler, subject 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 plant(s) of the transferee handler after computations pursuant to § 1063.46 (a) (8) and the corresponding step of § 1063.46(b);

(2) If the transferor handler received during the month other source milk to be allocated pursuant to § 1063.46 (a) (3) and the corresponding step of § 1063.46 (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

(3) If the transferor handler received during the month other source milk to be allocated pursuant to § 1063.46(a) (7) or (8) and the corresponding steps of $ 1063.46 (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 to a nonpool plant that is neither an other order plant nor a producerhandler plant, located more than 300 miles by the shortest highway distance as determined by the market administrator, from the City Hall of Rock Island. Illinois;

(d) As Class I milk, if transferred or diverted in bulk to a nonpool plant that is neither an other order plant nor a producer-handler plant, located not more than 300 miles, by the shortest highway distance as determined by the market administrator, from the City Hall of Rock Island, Illinois, 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:

(1) The transferring or diverting handler claims classification pursuant to the

assignment set forth in subparagraph (3) of this paragraph in his report submitted to the market administrator pursuant to § 1063.30 for the month within which such transaction occurred;

(2) The operator of such nonpool plant maintains books and records showing the utilization of all skim milk and butterfat received at such plant which are made available if requested by the market administrator for the purpose of verification; and

(3) The skim milk and butterfat so transferred shall be classified on the basis of the following assignment of utilization at such nonpool plant in excess of receipts of packaged fluid milk products from all pool plants and other order plants:

(i) Any Class I utilization disposed of on routes in the marketing area shall be first assigned to the skim milk and butterfat in the fluid milk products so transferred or diverted from pool plants, next pro rata to receipts from other order plants and thereafter to receipts from dairy farmers who the market administrator determines constitute regular sources of supply of Grade A milk for such nonpool plant;

(ii) Any Class I utilization disposed of on routes in the marketing area of another order issued pursuant to the Act shall be first assigned to receipts from plants fully regulated by such order, next pro rata to receipts from pool plants and other order plants not regulated by such order, and thereafter to receipts from dairy farmers who the market administrator determines constitute regular sources of supply for such nonpool plant;

(iii) Class I utilization (except in ungraded fluid milk products disposed of for manufacturing uses) in excess of that assigned pursuant to subdivisions (i) and (ii) of this subparagraph shall be assigned first to remaining receipts from dairy farmers who the market administrator determines constitute the regular source of supply for such nonpool plant and Class I utilization in excess of such receipts shall be assigned pro rata to unassigned receipts at such nonpool plant from all pool and other order plants; and

(iv) To the extent that Class I utilization is not so assigned to it, the skim milk and butterfat so transferred shall be classified as Class II milk; and

(e) As follows, if transferred to an other order plant in excess of receipts

from such plant in the same category as described in subparagraph (1), (2), or (3) of this paragraph:

(1) If transferred in packaged form, classification shall be in the classes to which allocated as a fluid milk product under the other order;

(2) If transferred in bulk form, classification shall be in the classes to which allocated as a fluid milk product under the other order (including allocation under the conditions set forth in subparagraph (3) of this paragraph);

(3) If the operators of both the transferor and transferee plants so request in the reports of receipts and utilization filed with their respective market administrators, transfers in bulk form shall be classified as Class II to the extent of the Class II utilization (or comparable utilization under such other order) available for such assignment pursuant to the allocation provisions of the transferee order;

(4) If information concerning the classification to which allocated under the other order is not available to the market administrator for purposes of establishing classification pursuant to this paragraph, classification shall be as Class I, subject to adjustment when such information is available;

(5) For purposes of this paragraph, if the transferee order provides for more than two classes of utilization, skim milk and butterfat allocated to a class consisting primarily of fluid milk products shall be classified as Class I, and skim milk and butterfat allocated to other classes shall be classified as Class II; and

(6) If the form in which any fluid milk product is transferred to an other order plant is not defined as a fluid milk product under such other order, classification shall be in accordance with the provisions of § 1063.41.

[29 F.R. 10936, July 30, 1964, as amended at 34 F.R. 18664, Nov. 22, 1969]

§ 1063.45 Computation of the skim milk and butterfat in each class. For each month, the market administrator shall correct for mathematical and for other obvious errors the reports of receipts and utilization for the pool plant(s) of each handler and shall compute the pounds of butterfat and skim milk in Class I milk and Class II milk for such handlers: Provided, That if any of the water contained in the milk from which a product is made is removed before the product is utilized or disposed

66-018-72-7

of by a handler, the pounds of skim milk disposed of in such product shall be considered to be an amount equivalent to the nonfat milk solids contained in such products, plus all of the water reasonably associated with such solids in the form of whole milk.

§ 1063.46

Allocation of skim milk and butterfat classified.

After making the computations pursuant to § 1063.45, the market administrator shall determine the classification of producer milk for each handler as follows:

(a) Skim milk shall be allocated in the following manner:

(1) Subtract from the total pounds of skim milk in Class II the pounds of skim milk classified as Class II pursuant to § 1063.41 (b) (6);

(2) Subtract from the remaining pounds of skim milk in each class the pounds of skim milk in fluid milk products received in packaged form from other order plants, except that to be subtracted pursuant to subparagraph (3) (v) of this paragraph, as follows:

(i) From Class II milk, the lesser of the pounds remaining or 2 percent of such receipts; and

(ii) From Class I milk, the remainder of such receipts;

(3) Subtract in the order specified below from the pounds of skim milk remaining in each class, in series beginning with Class II, the pounds of skim milk in each of the following:

(i) Other source milk in a form other than that of a fluid milk product;

(ii) Receipts of fluid milk products (except filled milk) for which Grade A certification is not established, and receipts of fluid milk products from unidentified sources;

(iii) Receipts of fluid milk products from a producer-handler, as defined under this or any other Federal order;

(iv) Receipts of reconstituted skim milk in filled milk from unregulated supply plants; and

(v) Receipts of reconstituted skim milk in filled milk from other order plants which are regulated under an order providing for individual-handler pooling, to the extent that reconstituted skim milk is allocated to Class I at the transferor plant;

(4) Subtract, in the order specified below, from the pounds of skim milk remaining in Class II but not in excess of such quantity:

(i) Receipts of fluid milk products from an unregulated supply plant, that were not subtracted pursuant to subparagraph (3) (iv) of this paragraph:

(a) For which the handler requests Class II utilization; or

(b) Which are in excess of the pounds of skim milk determined by multiplying the pounds of skim milk remaining in Class I milk by 1.25 and subtracting the sum of the pounds of skim milk in producer milk, receipts from other pool handlers, and receipts in bulk from other order plants, that were not subtracted pursuant to subparagraph (3) (v) of this paragraph;

(ii) Receipts of fluid milk products in bulk, including diversions, from an other order plant, that were not subtracted pursuant to subparagraph (3) (v) of this paragraph, in excess of similar transfers to such plant, if Class II utilization was requested by the operator of such plant and the handler;

(5) Subtract from the pounds of skim milk remaining in each class, in series beginning with Class II, the pounds of skim milk in inventory of fluid milk products on hand at the beginning of the month;

(6) Add to the remaining pounds of skim milk in Class II milk the pounds subtracted pursuant to subparagraph (1) of this paragraph;

(7) Subtract from the pounds of skim milk remaining in each class, pro rata to such quantities, the pounds of skim milk in receipts of fluid milk products from unregulated supply plants which were not subtracted pursuant to subparagraphs (3) (iv) or (4) (i) of this paragraph;

(8) Subtract from the pounds of skim milk remaining in each class, in the following order, the pounds of skim milk in receipts of fluid milk products in bulk from an other order plant (s), in excess in each case of similar transfers to the same plant, which were not subtracted pursuant to subparagraphs (3) (v) or (4) (ii) of this paragraph;

(i) In series beginning with Class II, the pounds determined by multiplying the pounds of such receipts by the larger of the percentage of estimated Class II utilization of skim milk announced for the month by the market administrator pursuant to § 1063.22 (m) or the percentage that Class II utilization remaining is of the total remaining utilization of skim milk of the handler; and

(ii) From Class I, the remaining pounds of such receipts;

(9) Subtract from the pounds of skim milk remaining in each class the pounds of skim milk received in fluid milk products from pool plants of other handlers according to the classification assigned pursuant to § 1063.44 (a); and

(10) If the pounds of skim milk remaining in both classes exceed the pounds of skim milk in producer milk, subtract such excess from the pounds of skim milk remaining in each class in series beginning with Class II. Any amount so subtracted shall be known as "overage";

(b) Butterfat shall be allocated in accordance with the procedure outlined for skim milk in paragraph (a) of this section; and

(c) Combine the amounts of skim milk and butterfat determined pursuant to paragraphs (a) and (b) of this section into one total for each class and determine the weighted average butterfat content of producer milk in each class.

[29 F.R. 10937, July 30, 1964, as amended at 33 F.R. 10940, Aug. 1, 1968; 34 F.R. 18664, Nov. 22, 1969]

Subject to the provisions of §§ 1063.51 and 1063.52 the basic formula and class prices per hundredweight for the month shall be as follows:

(a) Basic formula price. The basic formula price shall be the average price per hundredweight for manufacturing grade milk, f.o.b. plants in Wisconsin and Minnesota, as reported by the Department for the month. Such price shall be adjusted to a 3.5 percent butterfat basis by a butterfat differential rounded to the nearest one-tenth cent at the rate of the Chicago butter price times 0.12. The basic formula shall be rounded to the nearest cent. For the purpose of computing Class I prices from the effective date hereof, the basic formula price shall not be less than $4.33.

(b) The Class I milk price shall be the basic formula price for the preceding month plus $1.13, and plus 20 cents.

(c) Class II milk price. The Class II milk price shall be the basic formula price for the month.

[29 F.R. 18008, Dec. 18, 1964; 32 F.R. 5250, Mar. 29, 1967; 33 F.R. 6523, Apr. 30, 1968; 33 F.R. 20008, Dec. 31, 1968; 36 F.R. 19571, Oct. 8, 1971]