Code of Maine Rules › 01 - DEPARTMENT OF AGRICULTURE, CONSERVATION AND FORESTRY › 015 - MAINE MILK COMMISSION › Chapter 20 - PREVENTION OF DESTRUCTIVE COMPETITION › Section 015-20-V - COST OF MILK TO A DEALER

Current through 2024-29, July 17, 2024
A. Overview. The
				cost of milk to a dealer consists of a dealer's raw product costs as calculated
				according to subsection 8 or C, plus the dealer's expenses directly and
				indirectly incurred in receiving, processing, packaging and delivering the
				regulated product as calculated according to subsection D, E, or F. Examples of
				dealer expenses directly and indirectly incurred in receiving, processing,
				packaging and delivering milk are set forth in Section I(B).
This section contains three sets of procedures for
				  determining raw product costs. The first of these applies to Maine dealers who
				  buy milk in bulk from Maine producers and themselves process the milk they
				  sell. The second of these is similar to the first except that it applies to
				  sales which are not subject to regulation by the State of Maine. The third
				  procedure, which might more appropriately be called packaged product costs,
				  applies to the purchase of milk by subdealers from dealers. See the definitions
				  of "subdealer" and "dealer" contained in Sections I(N) and (D),
				  respectively.
The expenses directly and indirectly incurred by a dealer in
				  receiving, processing, packaging and delivering the regulated product may be
				  determined by the Commission on the basis of the dealer's actual expenses as
				  calculated under D OR E, or, unless the dealer proves lower actual costs, on
				  the basis of its imputed expenses as calculated under F.
B. Raw Product Costs for all Dealers Other
				Than Subdealers.
1. Raw product costs for milk
				purchased by Maine dairies from Maine producers shall be determined as set
				forth in subparagraphs (a) - (c), except that where the dealer's purchase price
				for raw milk is not required by State or Federal law to be based upon a Class I
				price established by a governmental agency, the dealer's raw product costs
				shall be deemed to be the purchase price as adjusted by the prevailing
				butterfat differential, plus any hauling charges paid by the dealer.
(a) Determine the Class I price per
				hundredweight of raw milk of 3.5% butterfat content as established monthly by
				the Commission:
(b) Reduce the
				Class I price per hundredweight by the butterfat differential established by
				the Federal Market Administrator for Federal Milk Order No. I (New England Milk
				Marketing Area) so as to reflect the dollar value on a hundredweight basis of
				the butterfat found in various formulations of fluid milk. Whole milk shall be
				deemed to have a butterfat content of 3.25% butterfat unless shown otherwise by
				the dealer. Nonfat (fat-free) milk shall be deemed to have a butterfat content
				of .1% butterfat unless shown otherwise by the dealer. Lowfat milk, and skim
				milk other than nonfat (fat-free) milk shall be deemed to have the butterfat
				content designated on the cap or container, or as otherwise determined by the
				Commission.
(c) Divide the Class I
				price of the milk as reduced to reflect the dollar value of its packaged
				butterfat content on a hundredweight basis by the appropriate generally
				accepted conversion factor so as to determine the raw product dollar value of
				packaged milk of varying butterfat content as sold in gallons, three-quart,
				half-gallon, quart and bulk containers.