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 4-60-9 - Minimum prices in the Honolulu milk shed

Current through June, 2024
(a) Minimum prices
				  to be paid by distributors or producer-distributors to producers or
				  producerdistributors for fresh milk produced for sale in the Honolulu milk shed
				  are established on the basis of the utilization for class I milk, class I skim
				  milk, and class II milk as provided in this section. Upon petition by a
				  producer or producerdistributor, the board may grant a waiver allowing the
				  producer or producerdistributor to sell its milk at less than the minimum price
				  if it is demonstrated that the lower price takes into consideration the
				  standards for determining the minimum prices for milk set forth in section
				  157-32,
				  Hawaii Revised Statutes.
(b) In the
				  Honolulu milk shed, the minimum price per hundredweight for class I milk, based
				  on milk with a butterfat content of 3.3 per cent, shall be established by order
				  of the board based on the formula in subsection (e), provided that the minimum
				  price per hundredweight for class I milk in the Honolulu milk shed shall remain
				  at $27.20 until the board establishes a new minimum price, by order, based on
				  the formula in subsection (e). Any minimum price established by order of the
				  board shall be subject to the approval of the governor and the notification
				  requirements of section
				  157-33,
				  Hawaii Revised Statutes.
If the statutory authority to establish the minimum price,
					 by order based on a formula, is repealed on June 30, 1998, the minimum price of
					 class I milk in the Honolulu milk shed, based on milk with a butterfat content
					 of 3.3 per cent, shall be established at $23.20 per hundredweight of milk,
					 effective July 1, 1998. If the authority to establish the minimum price of
					 class I milk in the Honolulu milk shed, by order based on a formula, is not
					 repealed on June 30, 1998, the board or the manager shall continue to establish
					 the minimum price by order based on the formula in subsection (e).
The minimum price for class I milk shall be increased by
					 fourteen cents per hundredweight for each .1 per cent of butterfat above 3.3
					 per cent or shall be decreased by fourteen cents per hundredweight for each. 1
					 per cent of butterfat below 3.3 per cent. The minimum price for class I skim
					 milk utilized in filled milk is established at the class I price less fourteen
					 cents per hundredweight for each .1 per cent of butterfat up to 3.3 per cent to
					 allow for the required usage of any fat or oil other than butterfat. The cost
					 of butterfat shall be on a formula basis determined by the branch and
					 distributor or producer-distributor. The formula shall be predicated upon the
					 monthly average price of imported butterfat delivered to the processing plant,
					 less reasonable costs incurred by the distributor or the producer-distributor,
					 and shall be purchased by the processor at the established butterfat cost. A
					 minimum class I fresh skim milk price shall be paid for all milk produced over
					 and above the class I milk utilized in all other class I products and shall be
					 allocated pro rata to all quota holders up to their monthly quotas. A
					 distributor or producer-distributor may utilize class I skim milk produced in
					 excess of the total monthly quotas provided that it is paid for at the above
					 established price.
(c) The
				  minimum price for class II milk is established on a formula basis to reflect
				  the cost to the distributor or producer-distributor of replacing the
				  constituents contained in class II milk. The formula shall be predicated upon
				  the monthly average price of imported milk constituents delivered to the
				  processing plant, less reasonable costs incurred by the distributor or
				  producer-distributor in making the constituents available and usable in class
				  II uses. On or before the eighth day of each calendar month, each distributor
				  or producer-distributor shall report its computed replacement cost for milk
				  constituents for the previous month based on the factors in this subsection.
				  The replacement costs and computations therefore shall be subject to audit by
				  the branch. In its monthly report, the distributor or producerdistributor shall
				  report the total pounds of fresh milk utilized in class II uses. The branch
				  shall then compute the total value of all fresh milk utilized in class II uses
				  by each distributor or producer-distributor based on their prior month's
				  replacement costs and shall then pool the costs of all distributors and
				  producer-distributors to determine an average price for all class II milk
				  utilized. Payments to producers shall be based upon the class II
				  price.
(d) Actual plant shrinkage
				  and route returns up to but not to exceed one per cent of the total fresh milk
				  received for processing shall be paid for at the fresh milk replacement cost,
				  class II price, or on a negotiated formula basis.
(e) The formula for determining the minimum
				  price per hundredweight of class I milk in the Honolulu milk shed shall be:
The minimum price per hundredweight of class I milk in the
					 Honolulu milk shed equals the California price plus $12.20.
(f) The board delegates all of its powers and
				  authority under subsection (b) to the manager. By order and based on the
				  formula in subsection (e), the manager may establish the minimum price for
				  class I milk in the Honolulu milk shed subject to the approval of the governor
				  and the notification requirements of section
				  157-33,
				  Hawaii Revised Statutes.