N.Y. Comp. Codes R. & Regs. tit. 1 § 21.31

Current through Register Vol. 46, No. 50, December 11, 2024

Section 21.31 - Classes of utilization

Subject to the conditions set forth in sections 21.30 and 21.32 through 21.34 of this Part, the classes of utilization shall be as follows:

(a) Class I milk shall be all skim milk and butterfat:

(1) utilized and disposed of as a fluid milk product in packaged form;

(2) moved to a plant as a fluid milk product in bulk form where it is utilized or allocated as Class I milk, which in the case of movements to a nonpool plant not regulated by a Federal order shall be a quantity of fluid milk products not less than that distributed as route disposition in the marketing area from such plant;

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

(4) in shrinkage assigned pursuant to section 21.32 of this Part; and

(5) not specifically accounted for as Class II, III or IV milk.

(b) Class II milk shall be all skim milk and butterfat:

(1) moved to a plant as a fluid milk product or fluid cream product in bulk form where it is utilized or allocated as a Class II product; and

(2) in fluid milk products in containers larger than one gallon and fluid cream products disposed of to any commercial food processor if the commissioner is permitted to audit the records of the commercial food processing establishment for the purpose of verification; otherwise such use shall be Class I; and

(3) used to produce:

(i) cottage cheese, lowfat cottage cheese, dry curd cottage cheese, ricotta cheese, pot cheese, creole cheese, and any similar soft, high-moisture cheese resembling cottage cheese in form or use;

(ii) milkshake and ice milk mixes (or bases), frozen desserts, and frozen dessert mixes distributed in one-quart containers or larger and intended to be used in soft or semi-solid form;

(iii) frozen cream, aerated cream, sour cream, sour half and half, sour cream mixtures containing nonmilk items, yogurt, and any other semi-solid product resembling a Class II product;

(iv) eggnog, custards, puddings, pancake mixes, buttermilk biscuit mixes, coatings and other buttermilk for baking that contains food starch in excess of 2 percent of the total solids, batter and similar products;

(v) any concentrated milk product in bulk fluid form other than that specified in paragraphs (c)(1) and (d)(5) of this section;

(vi) candy, soup, bakery products and other prepared foods which are processed for general distribution to the public and intermediate products including sweetened condensed milk, to be used in processing such prepared food products;

(vii) formulas especially prepared for infant feeding or dietary use (meal replacement) that are packaged in hermetically sealed containers; and

(viii) a fluid cream product or any product containing artificial fat or fat substitutes that resembles a fluid cream product, except as otherwise provided in subdivision (c) of this section; and

(4) in shrinkage classified as Class II pursuant to section 21.32 of this Part.

(c) Class III milk shall be all skim milk and butterfat:

(1) used to produce:

(i) cream cheese and other spreadable cheese, and hard cheese of types that may be shredded, grated, or crumbled, and are not included in subparagraph (b)(3)(i) of this section;

(ii) plastic cream, anhydrous milkfat and butteroil;

(iii) any concentrated milk product in bulk form that is used to produce a Class III product; and

(iv) evaporated or sweetened condensed milk/skim milk in a consumer-type package; and

(2) moved to a plant as a fluid milk or fluid cream product in bulk form where it is utilized or allocated as Class III milk;

(3) in shrinkage classified as Class III pursuant to section 21.32 of this Part.

(d) Class IV milk shall be all skim milk and butterfat:

(1) used to produce:

(i) butter; and

(ii) any milk product in dried form;

(2) in inventory at the end of the month of fluid milk products and fluid cream products in bulk form;

(3) skim milk represented by the nonfat solids added to a fluid milk product for fortification which is in excess of the volume included within the fluid milk product definition of section 21.16(a) of this Part;

(4) moved to a plant as a fluid milk or fluid cream product in bulk form where it is utilized or allocated as Class IV milk;

(5) any concentrated milk product in bulk form that is used to produce a Class IV product;

(6) any shrinkage classified as Class IV pursuant to section 21.32 of this Part; and

(7) any product not otherwise specified in this section.

(e) Skim milk and butterfat used in any product described in this section that is dumped, used for animal feed, destroyed, or lost by a marketer in a vehicular accident, flood, fire, or similar occurrence beyond the marketer's control shall be assigned to the lowest priced class for the month to the extent that the quantities destroyed or lost can be verified from records satisfactory to the commissioner.

N.Y. Comp. Codes R. & Regs. Tit. 1 § 21.31