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 4-60-10 - Minimum prices in the Hawaii 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 Hawaii 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) The
				  minimum price of class I milk is established at $29.53 per hundredweight of
				  milk, based on milk with a butterfat content of 3.3 per cent. The minimum price
				  for class I milk shall be increased by seven cents per hundredweight for each
				  .1 percent of butterfat above 3.3 per cent up to and including 3.5 per cent or
				  shall be decreased by seven cents per hundredweight for each .1 per cent of
				  butterfat below 3.3 per cent. Minimum price for class I skim milk utilized in
				  filled milk is established at the class I price less seven 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. 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 will be allocated pro
				  rata to all quota holders up to their monthly quotas. A distributor or
				  producer-distributor may utilize class 1 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 producer-distributor 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.