01- 015 C.M.R. ch. 1, § 23

Current through 2024-51, December 18, 2024

Section 015-1-23 - MILK BALANCING:

A dealer's calendar month's utilization and blend price shall be based on that dealer's "Net Class I Sales". "Net Class I Sales" shall be calculated as follows:

A. A dealer shall first calculate its "Gross Class I Sales". "Gross Class I Sales" is the sum of:

1. the dealer's packaged fluid Class I milk sales;

2. the dealer's Class I sales of fluid milk in bulk to other Maine dealers.

B. The dealer shall then calculate "Milk Purchased From Other Dealers". "Milk Purchased From Other Dealers" is the sum of:

1. Bulk Class I milk receipts from Maine dealers' producer milk;

2. Bulk Class I milk receipts from federal order sources;

3. Bulk Class I milk receipts or transfers from dealers outside of Maine, after deducting the amount of Class I milk sold outside of Maine in any area not regulated by any Federal Marketing Order, to the extent that such net receipts or transfers do not exceed 10% of the milk dealer's total Maine Class I sales; and

4. Class I milk receipts in packaged form.

C. Milk Purchased From Other Dealers shall not include purchases of bulk skim milk, unless;

1. the purchasing dealer's total producer production is less than the purchasing dealer's total needs, or;

2. when the purchase of skim is the direct result of separator equipment failure.

D. If a dealer purchases bulk skim but has not experienced separator equipment failure, only the amount of skim needed to bring the dealer's total purchases up to 105% of a dealer's total needs will be included in milk purchased from other dealers. Any skim purchases that results in a dealer's total purchases exceeding 105% of the dealer's total needs will be considered a Class II purchase.

E. A dealers "total needs" includes:

1. all Class I packaged milk sales less sales of purchased packed products.

2. all in-house Class II and Class III manufactured dairy products.

3. all shrinkage

4. the disposal of all surplus butterfat as marketable bulk cream

F. A dealer's "Net Class I Sales" shall be the dealer's "Gross Class I Sales" minus "Milk Purchased From Other Dealers".

G. A dealer's "Total Maine Class I Sales" shall be the dealer's gross Class I sales minus the sum of Class I sales outside the State of Maine, and transfers of packaged milk to plants outside the State of Maine.

01- 015 C.M.R. ch. 1, § 23