Louisiana Administrative Code › Title 7 - AGRICULTURE AND ANIMALS › Part XXXI - Milk, Milk Products and Substitutions › Chapter 3 - Dairy Stabilization Board › Section XXXI-309 - Volume Discounts Program and Procedures

Current through Register Vol. 50, No. 6, June 20, 2024
A. Any licensed retailer desiring to receive
				a volume discount from its suppliers must first be approved by the board or
				commissioner to receive a volume discount. To be approved by the board or
				commissioner, the retailer must complete a volume discount eligibility
				application, on forms provided by the board or commissioner. The application
				must include all fluid milk purchases during the standard three-month base
				period and/or all frozen dessert purchases during the standard 12-month base
				period. The application is subject to verification by the board or
				commissioner.
B. Processors and
				distributors may grant volume discounts to a licensed retailer upon receipt of
				notification from the board or commissioner of the retailer's eligibility to
				receive a volume discount.
C. The
				board or commissioner will annually, on or before April 1, publish a list of
				all retailers eligible to receive volume discounts, including the retailer's
				name and address, the rate(s) of discount authorized for each such retailer,
				and the effective date of such volume discount. The board or commissioner shall
				promptly notify all processors and distributors of any retailer approved for
				volume discounts subsequent to publication of the annual listing.
D. The authorized rate(s) of volume
				discount(s) will be established on the basis of a retailer's total purchases of
				fluid milk and/or frozen desserts from all suppliers during the appropriate
				base period.
E. The standard base
				period for calculation of the authorized rate of volume discount for fluid milk
				will be the months of August, September and October of each year. The standard
				base period for calculation of the authorized rate of volume discount for
				frozen desserts will be November 1 through October 31 immediately preceding the
				retailer's application.
F. A
				retailer that has not been in operation during the entire standard base period
				may, with the approval of the board or commissioner, use for fluid milk, his
				first full three calendar month's purchases and, for frozen desserts, his first
				full 12 calendar month's purchases.
G. The authorized rate of volume discount on
				fluid milk purchases will be established by totaling the value of all fluid
				milk purchases from all suppliers during the approved base period and dividing
				said total by three.
H. The
				authorized rate of volume discount on frozen desserts will be established by
				totaling the value of all frozen dessert products purchased from all suppliers
				during the approved base period.
I.
				The authorized rate of volume discount for each retailer shall become effective
				on April 1 of the year following the application and shall remain in effect
				until the following March 31, except as provided in
				§309. F Volume discount
				rates for a new retailer shall become effective as of his first day of business
				and remain in effect until he has operated for a full volume discount
				year.
J. The authorized rates of
				volume discount of fluid milk purchases shall be as follows.
Average Monthly Purchases from All Suppliers
							 Discount Rate
Volume
$1,000.00 to $1,500.00
3 percent
$1,500.01 to $2,500.00
4 percent
$2,500.01 to $3,500.00
5 percent
$3,500.01 to $4,500.00
6 percent
$4,500.01 and over
7 percent
K.
				The authorized rates of volume discount on frozen desserts shall be as follows.
Total Annual Purchases from All Suppliers
							 Discount Rate
Volume
$ 4,000.00 to $ 6,000.00
3%
$ 6,000.01 to $ 8,000.00
4%
$ 8,000.01 to $11,000.00
5%
$11,000.01 to $15,000.00
6%
$15,000.01 and over
7%
L.
				All applications for volume discounts must be submitted within one month after
				the close of the appropriate base period. One month's volume discount shall be
				forfeited for each month the application is late.
M. In a retail ownership transfer, the buyer
				may receive the volume discount rate approved for the previous owner.
				Alternatively, the buyer may choose to establish his own volume discount rate
				in accordance with these rules and regulations.
N. Accounts shall become delinquent 30 days
				from the end of the month in which the purchases were made, unless a good faith
				dispute exists between the parties concerning the amount of such account, in
				which case the account becomes delinquent 30 days following resolution of such
				good faith dispute.
O. Retailers
				who have delinquent accounts with any processor or distributor are not eligible
				to receive a volume discount from any supplier on any dairy products purchased
				during the period when the account was delinquent.
P. Each processor and distributor must report
				to the board or commissioner, no later than the tenth of each month, the name
				and address of each account which was delinquent.
AUTHORITY NOTE:
				  Promulgated in accordance with
				  R.S.
				  3:4108 (formerly R.S.
				  40:931.8).