N.Y. Comp. Codes R. & Regs. tit. 1 § 20.45

Current through Register Vol. 46, No. 45, November 2, 2024

Section 20.45 - Allocation of skim milk and butterfat classified

The classification of milk received from producers at each pool plant or pool unit for each handler shall be determined each month pursuant to subdivisions (a), (b) and (c) of this section: provided, that for the purpose of establishing the pool status of any plant with Class I-A route disposition in the marketing area which is not a pool plant pursuant to section 20.24 of this Part, skim milk and butterfat in milk received at such plant directly from dairy farmers or units up to an amount sufficient to qualify such plant as a pool plant pursuant to section 20.28(a) or (b) of this Part shall be considered the source of such Class I-A route disposition of such plant and be subtracted from Class I-A prior to the application of the allocation sequence set forth in subdivisions (a) and (b) of this section, unless at the time of filing the handler's report pursuant to section 20.30 of this Part the handler elects not to have it so allocated.

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

(1) Subtract from the total pounds of skim milk in Class III the pounds of skim milk classified as Class III pursuant to section 20.42(b) of this Part.

(2) Subtract the pounds of skim milk received in packaged form from a producer-handler for marketing as certified fluid milk products from the total pounds of skim milk in Class I-A and Class I-B milk, respectively, in accordance with its proportionate disposition in such classes.

(3) Subtract from the remaining pounds of skim milk in Class III, 2 percent of the pounds of skim milk in packaged fluid milk products received from other order plants, and subtract the balance from Class I-A.

(4) Subtract from the remaining pounds of skim milk in Class I-A the pounds of skim milk in packaged fluid milk products in inventory at the beginning of the month. This paragraph shall apply only if the pool plant was subject to the provisions of this subdivision or comparable provisions of another Federal milk order in the immediately preceding month.

(5) Subtract from the pounds of skim milk in Class II the pounds of skim milk in products specified in section 20.41(c)(1) of this Part that were received in packaged form from other plants, but not in excess of the pounds of skim milk remaining in Class II.

(6) Subtract from the remaining pounds of skim milk in Class II the pounds of skim milk in products specified in section 20.41(c)(1) of this Part in packaged form and in bulk concentrated fluid milk products that were in inventory at the beginning of the month, but not in excess of the pounds of skim milk remaining in Class II. This paragraph shall apply only if the pool plant was subject to the provisions of this paragraph or comparable provisions of another Federal milk order in the immediately preceding month.

(7) Subtract from the remaining pounds of skim milk in Class II the pounds of skim milk in bulk concentrated fluid milk products and in other source milk (except other source milk received in the form of an unconcentrated fluid milk product or a fluid cream product) that is used to produce, or added to, any product specified in section 20.41(c) of this Part excluding the quantity of such skim milk that was classified as Class III milk pursuant to section 20.41(d)(6) of this Part, but not in excess of the pounds of skim milk remaining in Class II.

(8) Subtract in the order specified below from the pounds of skim milk remaining in Class I-A, Class II and Class III milk, in series beginning with Class III, the pounds of skim milk in:

(i) Bulk concentrated fluid milk products and other source milk (except other source milk received in the form of an unconcentrated fluid milk product) and, if paragraph (6) of this subdivision applies, packaged inventory at the beginning of the month of products specified in section 20.41(c)(1) of this Part that was not subtracted pursuant to paragraphs (5), (6) and (7) of this subdivision.

(ii) Receipts of fluid milk products not approved by a duly constituted health authority which are excepted from the pool milk definition pursuant to section 20.14(b) of this Part;

(iii) Receipts of fluid milk products from a producer-handler pursuant to an other order or a producer-handler defined pursuant to section 20.12 of this Part (except pool milk designated in the preamble of section 20.14 ).

(iv) Receipts of fluid milk products from a handler's plant at which milk is excepted from the pool milk definition pursuant to section 20.14(h) of this Part.

(v) Receipts of fluid milk products from a handler with own farm milk, which milk is excepted from the pool milk definition pursuant to section 20.14(i) of this Part.

(9) Subtract in series beginning with Class III from the pounds of skim milk remaining in Class II and Class III milk the pounds of skim milk in receipts of other source milk in the form of fluid milk products from plants other than those defined in section 20.8(b) or (d) of this Part and units other than pool units for which the handler requests a Class II or Class III classification, but not in any case to exceed the pounds of skim milk remaining in such class.

(10) Subtract from the remaining pounds of skim milk in Class II or Class III milk the pounds of skim milk in bulk receipts of fluid milk products from other order plants not previously assigned and for which a Class II or Class III classification is requested by both the transferor and transferee handler in filing reports of receipts and utilization for the month with their respective market administrators, but not in any case to exceed the pounds of skim milk remaining in such class.

(11) Subtract from the pounds of skim milk remaining in each class, in series beginning with Class III, the pounds of skim milk in fluid milk products and products specified in section 20.41(c)(1) of this Part, in inventory at the beginning of the month that were not subtracted pursuant to paragraphs (4), (6) and (8)(i) of this subdivision.

(12) Add to the remaining pounds of skim milk in Class III the pounds subtracted pursuant to paragraph (1) of this subdivision.

(13)

(i) Subtract pro rata from the pounds of skim milk remaining in Class I-B, Class II and Class III milk the remaining pounds of skim milk in receipts of other source milk in the form of fluid milk products from plants not defined pursuant to section 20.8(b) or (d) of this Part and from units other than pool units: provided, That if the pounds of skim milk to be assigned pursuant to this subparagraph (i) of this paragraph exceed the available pounds of skim milk in Class I-B, Class II, and Class III the handler shall designate the priority of sources to be assigned to such classes.

(ii) No assignment shall be made pursuant to this paragraph with respect to milk received from a plant not defined pursuant to section 20.8(b) or (d) of this Part in the 401 miles and over freight zone at a plant from which 50 percent or more of the gross receipts of skim milk and butterfat leaves the plant in the form of fluid milk products in consumer packages or dispenser inserts and is classified as Class I-A.

(14) Subtract pro rata from the remaining pounds of skim milk in each class the pounds of skim milk in receipts from dairy farmers and from the handler's own farm which are excepted from the pool milk definition pursuant to section 20.14(h) and (i) of this Part.

(15) Subtract in the manner specified below from the pounds of skim milk remaining in each class the pounds of skim milk in receipts of fluid milk products from other order plants not previously assigned pursuant to paragraphs (3) and (10) of this subdivision:

(i) Subject to the provisions of this paragraph, such subtraction shall be pro rata to the pounds of skim milk in each class with respect to whichever of the following quantities represents the higher proportion of Class II and Class III milk combined:

(a) the estimated utilization of skim milk of all handlers in each class as announced for the month pursuant to section 20.22(d) of this Part; or

(b) the total pounds of skim milk remaining in each class at this allocation step at all pool plants of the handler (excluding any duplication of utilization in each class resulting from transfers between pool plants of the handler).

(ii) Should the proration pursuant to subparagraph (i) of this paragraph result in the total pounds of skim milk at all pool plants of the handler that are to be subtracted at this allocation step from Class II and Class III combined exceeding the pounds of skim milk remaining in Class II and Class III at all such plants, the pounds of such excess shall be subtracted from the pounds of skim milk remaining in Class I-A milk and Class I-B milk after such proration at the pool plants at which such other source milk was received.

(iii) Except as provided in subparagraph (ii) of this paragraph, should the computations pursuant to subparagraph (i) or (ii) of this paragraph result in a quantity of skim milk to be subtracted from Class II and Class III combined that exceeds the pounds of skim milk remaining in such classes, the pounds of skim milk in Class II and Class III combined shall be increased (increasing as necessary Class III and then Class II to the extent of available utilization in such classes at the nearest other pool plant of the handler, and then at each successively more distant pool plant of the handler) by an amount equal to such excess quantity to be subtracted, and the pounds of skim milk in Class I-A milk and Class I-B milk combined shall be decreased by a like amount, pro rata to remaining utilization in each such class. In such case, the pounds of skim milk remaining in each class at this allocation step at the handler's other pool plants shall be adjusted in the reverse direction by a like amount.

(iv) Except as provided in subparagraph (ii) of this paragraph, should the computations pursuant to subparagraph (i) or (ii) of this paragraph result in a quantity of skim milk to be subtracted from Class I-A milk or Class I-B milk that exceeds the pounds of skim milk remaining in that class, the pounds of skim milk in such class shall be increased by an amount equal to such excess quantity to be subtracted, and the pounds of skim milk in Class II and Class III combined shall be decreased by a like amount (decreasing as necessary Class III and then Class II). In such case, the pounds of skim milk remaining in each class at this allocation step at the handler's other pool plants shall be adjusted in the reverse direction by a like amount in sequence beginning with the nearest other pool plant of such handler at which Class I-A or Class I-B utilization is available.

(16) If the plant at which assignment is being made is a plant from which 50 percent or more of the gross receipts of skim milk and butterfat in the form of fluid milk products left the plant in the form of fluid milk products in consumer packages or dispenser inserts and was classified as Class I-A, subtract pro rata from the remaining pounds of skim milk in each class the pounds of skim milk in receipts of fluid milk product from plants in the 401 miles and over freight zone, not defined pursuant to section 20.8(b) or (d) of this Part.

(17) Subtract from the remaining pounds of skim milk in Class I-A milk the pounds of skim milk in remaining receipts from plants (except other order plants) of units the pool status of which has not been established and which receipts have not previously been assigned pursuant to paragraphs (13) and (16) of this subdivision.

(18) Subtract from the remaining pounds of skim milk in each class the pounds of skim milk received in the form of fluid milk products and bulk fluid cream products from other pool plants and from pool units (not previously assigned pursuant to the preamble of this section), in accordance with the classification assigned by the transferee handler subject to the conditions of subparagraphs (i) through (iii) of this paragraph:

(i) The skim milk so assigned to any class of utilization shall be limited to the amount thereof remaining in such class in the transferee plant.

(ii) If the transferor plant received during the month other source milk to be allocated pursuant to paragraph (7) of this subdivision the skim milk so transferred shall be classified so as to allocate the least possible Class I-A or I-B utilization to such other source milk.

(iii) If the transferor handler received during the month other source milk to be allocated pursuant to paragraph (13) of this subdivision, the skim milk so transferred shall not be classified as Class I-A or I-B to a greater extent than would be applicable to a like quantity of such other source milk received at the transferee plant.

(19) Add to the remaining pounds of skim milk in Class I-A the pounds of skim milk received directly from dairy farmers or units which was deducted pursuant to the proviso in the preamble of this section.

(20) If the pounds of skim milk remaining in all classes exceeds the pounds of skim milk in receipts from producers subtract such excess from the pounds of skim milk remaining in each class in series beginning with Class III. Any amount so subtracted shall be know as overage.

(b) Butterfat shall be allocated in accordance with the procedure outlined from skim milk in subdivision (a) of this section.

(c) Combine the amounts of skim milk and butterfat determined pursuant to subdivisions (a) and (b) of this section into one total for each class.

N.Y. Comp. Codes R. & Regs. Tit. 1 § 20.45