[Federal Register Volume 60, Number 26 (Wednesday, February 8, 1995)]
[Proposed Rules]
[Pages 7466-7467]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-3146]



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DEPARTMENT OF AGRICULTURE
7 CFR Part 1131

[DA-95-11]


Milk in the Central Arizona Marketing Area; Proposed Suspension 
of Certain Provisions of the Order

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed suspension of rule.

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SUMMARY: This document invites written comments on a proposal to 
suspend certain provisions of the Central Arizona Federal milk 
marketing order for an indefinite period beginning March 1, 1995. The 
proposed suspension would eliminate the requirement that a cooperative 
association ship at least 50 percent of its receipts to other handler 
pool plants to maintain pool status of a manufacturing plant operated 
by the cooperative. United Dairymen of Arizona, a cooperative 
association that represents nearly all of the producers who supply milk 
to the market, has requested the suspension. The cooperative asserts 
that the suspension is necessary to prevent uneconomical and 
inefficient movements of milk.

DATES: Comments are due no later than February 23, 1995.

ADDRESSES: Comments (two copies) should be filed with the USDA/AMS/
Dairy Division, Order Formulation Branch, Room 2971, South Building, 
P.O. Box 96456, Washington, DC 20090-6456.

FOR FURTHER INFORMATION CONTACT:Clifford M. Carman, Marketing 
Specialist, USDA/AMS/Dairy Division, Order Formulation Branch, Room 
2971, South Building, P.O. Box 96456, Washington, DC 20090-6456, (202) 
720-9368.

SUPPLEMENTARY INFORMATION: The Regulatory Flexibility Act (5 U.S.C. 
601-612) requires the Agency to examine the impact of a proposed rule 
on small entities. Pursuant to 5 U.S.C. 605(b), the Administrator of 
the Agricultural Marketing Service has certified that this proposed 
rule would not have a significant economic impact on a substantial 
number of small entities. This rule would tend to ensure that dairy 
farmers would continue to have their milk priced under the order and 
thereby receive the benefits that accrue from such pricing.
    The Department is issuing this proposed rule in conformance with 
Executive Order 12866.
    This proposed rule has been reviewed under Executive Order 12778, 
Civil Justice Reform. This rule is not intended to have a retroactive 
effect. If adopted, this proposed rule will not preempt any state or 
local laws, regulations, or policies, unless they present an 
irreconcilable conflict with the rule.
    The Agricultural Marketing Agreement Act of 1937, as amended (7 
U.S.C. 601-674), provides that administrative proceedings must be 
exhausted before parties may file suit in court. Under section 
608c(15)(A) of the Act, any handler subject to an order may file with 
the Secretary a petition stating that the order, any provisions of the 
order, or any obligation imposed in connection with the order is not in 
accordance with law and request a modification of an order or to be 
exempted from the order. A handler is afforded the opportunity for a 
hearing on the petition. After a hearing, the Secretary would rule on 
the petition. The Act provides that the district court of the United 
States in any district in which the handler is an inhabitant, or has 
its principal place of business, had jurisdiction in equity to review 
the Secretary's ruling on the petition, provided a bill in equity is 
filed not later than 20 days after the date of the entry of the ruling.
    Notice is hereby given that, pursuant to the provisions of the 
Agricultural Marketing Agreement Act, the suspension of the following 
provision of the order regulating the handling of milk in the Central 
Arizona marketing area is being considered for an indefinite period 
beginning March 1, 1995:
    In Sec. 1131.7(c), the words ``50 percent or more of its member 
producer milk (including the skim milk and butterfat in fluid milk 
products transferred from its own plant pursuant to this paragraph that 
is not in excess of the skim milk and butterfat contained in member 
producer milk actually received at such plant) received at the pool 
plants of other handlers during the current month or the previous 12-
month period ending with the current month.''
    All persons who want to submit written data, views or arguments 
about the proposed suspension should send two copies of their views to 
the USDA/AMS/Dairy Division, Order Formulation Branch, Room 2971, South 
Building, P.O. Box 96456, Washington, DC 20090-6456, by the 15th day 
after publication of this notice in the Federal Register. The period 
for filing comments is limited to 15 days because a longer period would 
not provide the time needed to complete the required procedures before 
the requested suspension is to be effective.
    All written submissions made pursuant to this notice will be made 
available for public inspection in the Dairy Division during regular 
business hours (7 CFR 1.27(b)).

Statement of Consideration

    The proposed rule would suspend certain provisions of the Central 
Arizona order for an indefinite period beginning March 1, 1995. The 
proposed suspension would remove the requirement that a cooperative 
association that operates a manufacturing plant in the marketing area 
must ship at least 50 percent of its milk supply during the current 
month or the previous 12-month period ending with the current month to 
other handlers' pool plants to maintain the pool status of its 
manufacturing plant.
    Currently the order permits a cooperative association's 
manufacturing plant, located in the marketing area, to be a pool plant 
if at least 50 percent of the producer milk of members of the 
cooperative association is physically received at pool plants of other 
handlers during the current month or the previous 12-month period 
ending with the current month.
    The proposed suspension of this shipping requirement was requested 
by United Dairymen of Arizona (UDA), a cooperative association that 
represents nearly all of the dairy farmers who supply the Central 
Arizona market. UDA contends that the continued pool status of their 
manufacturing plant is threatened by an increase in milk production 
combined with a drop in Class I sales. UDA states that in 1994 its 
member production increased 17 percent over the previous year. In 1994, 
monthly deliveries to distributing plants also increased sufficiently 
to ensure UDA a safe margin over the minimum 50 percent shipping 
requirement to maintain pool status of its manufacturing plant. 
According to UDA, the increase in distributing plant demand reflected a 
significant increase in Class I sales in the Mexico market by Central 
Arizona handlers. The recent collapse of the Mexican peso has curtailed 
these sales and thus reduced handler requirements for bulk milk 
deliveries from UDA. Absent a [[Page 7467]] suspension, UDA projects 
that costly and inefficient movements of milk would have to be made to 
maintain pool status of producers who have historically supplied the 
market and to prevent disorderly marketing in the Central Arizona 
marketing area.
    Accordingly, it may be appropriate to suspend the aforesaid 
provisions beginning March 1, 1995, for an indefinite period.

List of Subjects in 7 CFR Part 1131

    Milk marketing orders.
    The authority citation for 7 CFR Part 1131 continues to read as 
follows:

    Authority: Secs. 1-19, 48 Stat 31, as amended; 7 U.S.C. 601-674.

    Dated: February 2, 1995.
Lon Hatamiya,
Administrator.
[FR Doc. 95-3146 Filed 2-7-95; 8:45 am]
BILLING CODE 3410-02-M