Hawaii Administrative Rules › Title 4 - DEPARTMENT OF AGRICULTURE › Subtitle 4 - DIVISION OF MARKETING AND CONSUMER SERVICES › Chapter 60 - MILK CONTROL RULES › Subchapter 3 - PRICE RULES › Section 4-60-12 - Method of payment

Current through June, 2024
Payment to producers and producer-distributors under this
					 chapter shall be made as follows:
(1)
				  Each distributor or producer-distributor shall determine the total quantity of
				  fresh milk and its butterfat content received from each producer or
				  producer-distributor for each calendar month;
(2) The information for the month immediately
				  preceding as set forth in paragraph (1) together with other information
				  required by the branch, shall be submitted to the branch on forms provided by
				  the branch, not later than the end of the eighth day of each month;
(3) The branch shall determine for each
				  producer and producer-distributor the portion of the fresh milk delivered for
				  which the producer and producer-distributor shall be paid class I price; the
				  portion for which the producer and producer-distributor shall be paid class I
				  fresh skim milk price; the portion for which the producer and
				  producer-distributor shall be paid class II price; the portion for which the
				  producer and producer-distributor shall be paid excess pool price; less proven
				  plant shrinkage and route returns, as the case may be, compute the value of the
				  milk in each classification with proper adjustment for butterfat differential;
				  and report the information to each distributor and producer-distributor not
				  later than the end of the fifteenth day of the month;
(4) Payments for fresh milk delivered in a
				  given month shall be made to producers, producer-distributors or dairy
				  cooperatives during the subsequent month as follows: A first payment of
				  approximately fifty per cent of the total amount owed by the end of the tenth
				  day of the month and the balance of the amount owed, as computed by the branch
				  in paragraph (3) less authorized deductions, by the end of the twentieth day of
				  the month. Evidence of such payment shall be filed with the branch by the
				  twenty-fifth day of the month; and
(5) The branch shall compute each distributor
				  and producer-distributor's obligation to a special trustee account known as the
				  "Producers' Settlement Fund," which fund shall be administered by the branch
				  and from which the branch shall make distribution and adjustment payments to
				  distributors or producer-distributors to effectuate a marketwide pooling of
				  milk produced for use in the Honolulu milk shed and Hawaii milk shed as
				  follows:
(A) Value of plant utilization of
				  milk. Multiply the volume of fresh milk reported by each distributor or
				  producer-distributor as utilized in class I, in class II, and in the excess
				  pool, if any, with proper adjustments for butterfat differential, plant
				  shrinkage and route returns, by the appropriate price to determine the value of
				  the plant utilization of milk;
(B)
				  Amount owed producers for milk. Add the amounts owed to producers and
				  producer-distributors by a distributor or producer-distributor as determined in
				  paragraph (3) to determine the total amount owed to producers or
				  producer-distributors for fresh milk delivered to said distributor or
				  producer-distributor; and
(C)
				  Computing producers' settlement fund. Compare the value of the plant
				  utilization, as determined in subparagraph (A) above, with the total amount the
				  distributor or producer-distributor owes producers and producer-distributors
				  for fresh milk delivered, as determined in subparagraph (B) above. If the total
				  of plant utilization, subparagraph (A) exceeds the distributor or
				  producer-distributor's obligation to producersand producer-distributor,
				  subparagraph (B), the distributor or producer-distributor shall pay the
				  difference into the producers' settlement fund. If the distributor or
				  producer-distributor's obligation to producers and producer-distributors,
				  subparagraph (B), exceeds the value of plant utilization, subparagraph (A), the
				  distributor or producer-distributor shall be paid the difference from the
				  producers settlement fund. Payments by distributors and producer-distributors
				  into the producers' settlement fund shall be made by the eighteenth day of the
				  month following delivery of milk and payments from the fund to distributors and
				  producer-distributors shall be made therefrom by the twenty-eighth day of said
				  month.