La. Admin. Code tit. 7 § XXXI-309
Current through Register Vol. 50, No. 11, November 20, 2024
Section XXXI-309 - Volume Discounts Program and ProceduresA. Any licensed retailer desiring to receive a volume discount from its suppliers must first be approved by the board or commissioner to receive a volume discount. To be approved by the board or commissioner, the retailer must complete a volume discount eligibility application, on forms provided by the board or commissioner. The application must include all fluid milk purchases during the standard three-month base period and/or all frozen dessert purchases during the standard 12-month base period. The application is subject to verification by the board or commissioner.B. Processors and distributors may grant volume discounts to a licensed retailer upon receipt of notification from the board or commissioner of the retailer's eligibility to receive a volume discount.C. The board or commissioner will annually, on or before April 1, publish a list of all retailers eligible to receive volume discounts, including the retailer's name and address, the rate(s) of discount authorized for each such retailer, and the effective date of such volume discount. The board or commissioner shall promptly notify all processors and distributors of any retailer approved for volume discounts subsequent to publication of the annual listing.D. The authorized rate(s) of volume discount(s) will be established on the basis of a retailer's total purchases of fluid milk and/or frozen desserts from all suppliers during the appropriate base period.E. The standard base period for calculation of the authorized rate of volume discount for fluid milk will be the months of August, September and October of each year. The standard base period for calculation of the authorized rate of volume discount for frozen desserts will be November 1 through October 31 immediately preceding the retailer's application.F. A retailer that has not been in operation during the entire standard base period may, with the approval of the board or commissioner, use for fluid milk, his first full three calendar month's purchases and, for frozen desserts, his first full 12 calendar month's purchases.G. The authorized rate of volume discount on fluid milk purchases will be established by totaling the value of all fluid milk purchases from all suppliers during the approved base period and dividing said total by three.H. The authorized rate of volume discount on frozen desserts will be established by totaling the value of all frozen dessert products purchased from all suppliers during the approved base period.I. The authorized rate of volume discount for each retailer shall become effective on April 1 of the year following the application and shall remain in effect until the following March 31, except as provided in §309. F Volume discount rates for a new retailer shall become effective as of his first day of business and remain in effect until he has operated for a full volume discount year.J. The authorized rates of volume discount of fluid milk purchases shall be as follows. Average Monthly Purchases from All Suppliers Discount Rate | Volume |
$1,000.00 to $1,500.00 | 3 percent |
$1,500.01 to $2,500.00 | 4 percent |
$2,500.01 to $3,500.00 | 5 percent |
$3,500.01 to $4,500.00 | 6 percent |
$4,500.01 and over | 7 percent |
K. The authorized rates of volume discount on frozen desserts shall be as follows. Total Annual Purchases from All Suppliers Discount Rate | Volume |
$ 4,000.00 to $ 6,000.00 | 3% |
$ 6,000.01 to $ 8,000.00 | 4% |
$ 8,000.01 to $11,000.00 | 5% |
$11,000.01 to $15,000.00 | 6% |
$15,000.01 and over | 7% |
L. All applications for volume discounts must be submitted within one month after the close of the appropriate base period. One month's volume discount shall be forfeited for each month the application is late.M. In a retail ownership transfer, the buyer may receive the volume discount rate approved for the previous owner. Alternatively, the buyer may choose to establish his own volume discount rate in accordance with these rules and regulations.N. Accounts shall become delinquent 30 days from the end of the month in which the purchases were made, unless a good faith dispute exists between the parties concerning the amount of such account, in which case the account becomes delinquent 30 days following resolution of such good faith dispute.O. Retailers who have delinquent accounts with any processor or distributor are not eligible to receive a volume discount from any supplier on any dairy products purchased during the period when the account was delinquent.P. Each processor and distributor must report to the board or commissioner, no later than the tenth of each month, the name and address of each account which was delinquent.La. Admin. Code tit. 7, § XXXI-309
Promulgated by the Department of Agriculture, Dairy Stabilization Board, LR 9:5 (January 1983), amended LR 20:400 (April 1994).AUTHORITY NOTE: Promulgated in accordance with R.S. 3:4108 (formerly R.S. 40:931.8).