(g) Prepare and disseminate, for the benefit of producers, consumers, and handlers, such statistics and information concerning the operation of this part as do not reveal confidential information;

(h) Publicly disclose to handlers and any handler who, after the date on which producers, at his discretion, the name of he is required to perform such acts, has not made reports pursuant to §§ 1062.30 through 1062.33 or payments pursuant to §§ 1062.80 through 1062.87;

(i) Verify all reports and payments of each handler by audit, if necessary, of such handler's records and the records of any other handler or person upon whose utilization the classification of skim milk and butterfat for such handler depends;

(j) Publicly announce on or before:

(1) The 5th day of each month, the minimum price for Class I milk, pursuant to § 1062.51(a), and the Class I butterfat differential, pursuant to § 1061.53 (a), both for the current month; and the minimum price for Class II milk, pursuant to § 1062.51 (b), and the Class II butterfat differential, pursuant to § 1062.53(b), both for the preceding month;

(2) The 10th day after the end of each month, the uniform price, pursuant to § 1062.71, and the producer butterfat differential, pursuant to § 1062.81; and

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 the milk caused to be delivered by the cooperative association or by 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) Whenever required for purposes of allocating receipts from other order plants pursuant to § 1062.45 (a) (8) and the corresponding step of § 1062.45 (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 § 1062.45 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.

[26 F.R. 1430, Feb. 18, 1961, as amended at 29 F.R. 10931, July 30, 1964]

REPORTS, RECORDS, AND FACILITIES

§ 1062.30 Reports of receipts and utilization.

(a) on or before the 7th day after the end of each month each handler for each of his pool plants, and each association in its capacity as a handler pursuant to § 1062.12 (c) and (d) shall report for such month to the market administrator in the detail and on forms prescribed by the market administrator;

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

(i) Producer milk;

(ii) Milk in the form of Class I products received from pool plants;

(iii) Other source milk;

(2) The quantities of skim milk and butterfat contained in producer milk diverted to nonpool plants pursuant to § 1062.14;

(3) The quantities of skim milk and butterfat contained in inventories of Class I products on hand at the beginning and end of the month;

(4) The utilization of all skim milk and butterfat required to be reported pursuant to this paragraph, including a separate statement of the disposition of Class I milk outside the marketing area;

(5) The name and address of each producer from whom milk was not received during the previous month, and the date on which milk was first received from such producer;

(6) The name and address of each producer who discontinues deliveries of

milk, and the date on which milk was last received from such producer; and

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

(b) Each handler specified in § 1062.12 (b) who operates a partially regulated city plant shall report as required in paragraph (a) of this section, 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 the respective amounts of skim milk and butterfat disposed of on routes in the marketing area as Class I milk.

[29 F.R. 10931, July 30, 1964] § 1062.31

Other reports.

Each producer-handler shall make reports to the market administrator at such time and in such manner as the market administrator shall request. [29 F.R. 10932, July 30, 1964]

§ 1062.32 Reports of milk received from producers.

(a) on or before the 25th day of each month, each handler except a handler pursuant to § 1062.12 (b), shall report to the market administrator, on forms approved by the market administrator his producer payroll, which shall show the total pounds of milk received from each producer during the first 15 days of such month;

(b) on or before the 20th day after the end of each month each handler, except a handler pursuant to § 1062.12 (b), shall report to the market administrator for such month on forms approved by the market administrator, his producer payroll, which shall show for each producer from whom milk was received:

(1) The total pounds and butterfat content of milk received from such producer;

(2) The price and the total amount paid for milk received from such producer, together with the amount and nature of any deduction; and

(3) The amount and nature of payments made pursuant to §§ 1062.80 and 1062.86.

(c) Each handler operating a partially regulated city plant who does not elect to make payments as required pursuant to § 1062.62(b) shall report to the market administrator on or before the 20th day after the end of the month for each

Each handler who receives milk during the month from producers for which payment is to be made to a cooperative association pursuant to § 1062.80(b) shall report to such cooperative association for each such producer on forms approved by the market administrator as follows:

(a) On or before the 25th day of the month, the total pounds of milk received during the first 15 days of such month; (b) on or before the 7th day of the following month:

(1) The pounds of milk received each day, and the total for the month, together with the butterfat content of such milk;

(2) The amount or rate and nature of deductions.

§ 1062.34 Reports of transportation

rates.

On or before the 10th day after a request is received from the market administrator, each handler who makes deductions from payments to producers for hauling shall submit a schedule of transportation rates which are charged and paid for such transportation of milk from the farm of the producer to such handler's plant(s). Any changes made in this schedule of transportation rates and the effective dates thereof shall be reported to the market administrator within 10 days.

§ 1062.35 Records and facilities.

Each handler shall maintain and make available to the market administrator or to his representative during the usual hours of business such accounts and records of his operations and such facilities as the market administrator deems necessary to verify or establish the correct data which are required to be reported pursuant to §§ 1062.30 through 1062.34 and the payments required to be made pursuant to §§ 1062.80 through 1062.89.

§ 1062.36 Retention of records.

All books and records required under this part to be made available to the market, administrator shall be retained

by the handler for a period of 3 years to begin at the end of the calendar month to which such books and records pertain: Provided, That if, within such 3-year period, the market administrator notifies the handler in writing that the retention of such books and records, or of specified books and records, is necessary in connection with a proceeding under section 8c (15) (A) of the Act or a court action specified in such notice, the handler shall retain such books and records, or specified books and records, until further written notification from the market administrator. In either case, the market administrator shall give further written notification to the handler promptly upon the termination of the litigation or when the records are no longer necessary in connection therewith.

CLASSIFICATION OF MILK

§ 1062.40 Basis of classification.

All skim milk and butterfat which is required to be reported pursuant to § 1062.30 shall be classified by the market administrator pursuant to the provisions of §§ 1062.41 through 1062.46. § 1062.41 Classes of utilization.

Subject to the conditions set forth in §§ 1062.42 through 1062.46, 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 those classified pursuant to paragraph (b) (2), (3), and (4) of this section. Fluid milk products which have been fortified by the addition of nonfat solids shall be Class I in an amount equal only to the weight of an equal volume of an unmodified product of the same nature and butterfat content; and

(2) Not accounted for as Class II. (b) Class II milk. Class II milk shall be all skim milk and butterfat:

(1) Accounted for and used to produce any product other than a fluid milk product;

(2) All skim milk and butterfat authorized by the market administrator to be dumped;

(3) All skim milk and butterfat accounted for as disposed of for livestock feed;

(4) In inventory of fluid milk products on hand at the end of the month;

(5) The weight of the skim milk in fortified fluid milk products not classi

fied as Class I pursuant to paragraph (a) (1) of this section;

(6) In shrinkage of skim milk and butterfat, respectively, but not to exceed the following:

(i) Two percent of milk received from dairy farmers exclusive of that diverted pursuant to § 1062.14; plus

(ii) One and one-half percent of milk received in bulk tank lots from pool plants of other handlers; plus

(iii) One and one-half percent of receipts of fluid milk products in bulk tank lots from other order plants, exclusive of the quantity for which Class II utilization was requested by the operators of such plants and the handler; plus

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

(v) One and one-half percent of milk disposed of in bulk tank lots to pool plants of other handlers and to nonpool plants (exclusive of milk diverted pursuant to § 1062.14); and

(7) In shrinkage of skim milk and butterfat, respectively, assigned pursuant to § 1062.46(b) (2).

[29 F.R. 18050, Dec. 19, 1964]

§ 1062.42 Responsibility of handlers and reclassification of milk.

(a) All skim milk and butterfat shall be classified as Class I milk unless the handler who first receives such skim milk and butterfat proves to the market administrator that such skim milk and butterfat shall be classified in another class.

(b) Any skim milk or butterfat classified in one class shall be reclassified if used or reused by such handler or by another handler (except a producerhandler) in another class. § 1062.43

Transfers.

Skim milk and butterfat transferred or diverted as any product designated in § 1062.20 from a pool plant or by a cooperative association in its capacity as a handler pursuant to § 1062.12 (c) and (d) shall be classified as follows:

(a) At the utilization indicated by both handlers, otherwise as Class I milk, if transferred or diverted to the pool plant of another handler, 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 § 1062.45 (a) (8) and the corresponding step of § 1062.45 (b);

(2) If the transferor plant received during the month other source milk to be allocated pursuant to § 1062.45 (a) (3) and the corresponding step of § 1062.45 (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;

(3) If the transferor handler received during the month other source milk to be allocated pursuant to § 1062.45 (a) (7) or (8) and the corresponding steps of § 1062.45 (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; and

(4) If the transfer is by a cooperative association, the skim milk and butterfat so transferred shall be allocated pro rata to each class in the proportion remaining after the subtraction pursuant to § 1062.45 (a) (8) and the corresponding step of § 1062.45 (b);

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

(c) As Class I milk if moved to a nonpool plant which is neither an other order plant nor the plant of a producerhandler unless the requirements of subparagraphs (1), (2) and (3) 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 set forth in subparagraph (4) of this paragraph:

(1) The transferee plant is located within 350 airline miles of the City Hall in St. Louis, Missouri;

(2) The transferor-handler claims classification of such skim milk and butterfat in Class II in his report submitted pursuant to § 1062.30;

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

(4) 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 of Grade A milk for such nonpool plant;

(iii) Class I utilization 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 of Grade A milk 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

(d) As Class I milk if moved in bulk to a nonpool plant that is neither an other order plant nor a producer-handler plant, located more than 350 airline miles from the City Hall in St. Louis, Missouri, except that cream so transferred may be classified as Class II if the handler claims Class II use and establishes that such cream was transferred to a nonpool plant without Grade A Certification and that the contents were for manufacturing use and that the shipment was so invoiced; and

(e) As follows, if transferred or diverted 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, milk allocated to a class consisting primarily of fluid milk products shall be classified as Class I, and milk 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 § 1062.41.

[29 F.R. 10932, July 30, 1964, as amended at 29 F.R. 18050, Dec. 19, 1964]

§ 1062.44 Computation of skim milk and butterfat in each class.

For each month, the market administrator shall correct for mathematical and other obvious errors the reports submitted by each handler and compute the total pounds of skim milk and butterfat, respectively, in Class I milk and Class II milk for such handler, or in the case of a cooperative association for that milk received pursuant to § 1062.12(d) or diverted to a nonpool plant pursuant to § 1062.12(c): 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 of by a handler, the pounds of skim milk used or disposed of in such product shall be considered to be a quantity equivalent to the nonfat milk solids contained in

such product plus all the water originally associated with such solids.

[26 F.R. 1430, Feb. 18, 1961, as amended at 29 F.R. 10933, July 30, 1964]

§ 1062.45 Allocation of skim milk and butterfat classified.

After making the computations pursuant to § 1062.44, 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 § 1062.41 (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 as follows:

(i) From Class II milk, the lesser of the pounds remaining or two percent o 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 for which Grade A certification is not established, or which are from unidentified sources; and

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

(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 country plant: (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;

(ii) Receipts of fluid milk products in bulk from an other order plant in excess of similar transfers to such plant, if