New York Codes, Rules and Regulations › Title 1 - DEPARTMENT OF AGRICULTURE AND MARKETS › Chapter I - Milk Control › Subchapter B - Milk Control Orders › Part 20 - New York/new Jersey Milk Marketing Area (revised Official Order No. 126) › Classification › Section 20.45 - Allocation of skim milk and butterfat classified

Current through Register Vol. 46, No. 28, July 10, 2024
The classification of milk received from producers at
						each pool plant or pool unit for each handler shall be determined each month
						pursuant to subdivisions (a), (b) and (c) of this section: provided, that for
						the purpose of establishing the pool status of any plant with Class I-A route
						disposition in the marketing area which is not a pool plant pursuant to section
						20.24  of this
						Part, skim milk and butterfat in milk received at such plant directly from
						dairy farmers or units up to an amount sufficient to qualify such plant as a
						pool plant pursuant to section
						20.28(a) or
						(b)  of this Part shall be considered the
						source of such Class I-A route disposition of such plant and be subtracted from
						Class I-A prior to the application of the allocation sequence set forth in
						subdivisions (a) and (b) of this section, unless at the time of filing the
						handler's report pursuant to section
						20.30 
						of this Part the handler elects not to have it so allocated.
(a) Skim milk shall be allocated in the
					 following manner:
(1) Subtract from the total
					 pounds of skim milk in Class III the pounds of skim milk classified as Class
					 III pursuant to section
					 20.42(b) 
					 of this Part.
(2) Subtract the
					 pounds of skim milk received in packaged form from a producer-handler for
					 marketing as certified fluid milk products from the total pounds of skim milk
					 in Class I-A and Class I-B milk, respectively, in accordance with its
					 proportionate disposition in such classes.
(3) Subtract from the remaining pounds of
					 skim milk in Class III, 2 percent of the pounds of skim milk in packaged fluid
					 milk products received from other order plants, and subtract the balance from
					 Class I-A.
(4) Subtract from the
					 remaining pounds of skim milk in Class I-A the pounds of skim milk in packaged
					 fluid milk products in inventory at the beginning of the month. This paragraph
					 shall apply only if the pool plant was subject to the provisions of this
					 subdivision or comparable provisions of another Federal milk order in the
					 immediately preceding month.
(5)
					 Subtract from the pounds of skim milk in Class II the pounds of skim milk in
					 products specified in section
					 20.41(c)(1) 
					 of this Part that were received in packaged form from other plants, but not in
					 excess of the pounds of skim milk remaining in Class II.
(6) Subtract from the remaining pounds of
					 skim milk in Class II the pounds of skim milk in products specified in section
					 20.41(c)(1) 
					 of this Part in packaged form and in bulk concentrated fluid milk products that
					 were in inventory at the beginning of the month, but not in excess of the
					 pounds of skim milk remaining in Class II. This paragraph shall apply only if
					 the pool plant was subject to the provisions of this paragraph or comparable
					 provisions of another Federal milk order in the immediately preceding
					 month.
(7) Subtract from the
					 remaining pounds of skim milk in Class II the pounds of skim milk in bulk
					 concentrated fluid milk products and in other source milk (except other source
					 milk received in the form of an unconcentrated fluid milk product or a fluid
					 cream product) that is used to produce, or added to, any product specified in
					 section
					 20.41(c) 
					 of this Part excluding the quantity of such skim milk that was classified as
					 Class III milk pursuant to section
					 20.41(d)(6) 
					 of this Part, but not in excess of the pounds of skim milk remaining in Class
					 II.
(8) Subtract in the order
					 specified below from the pounds of skim milk remaining in Class I-A, Class II
					 and Class III milk, in series beginning with Class III, the pounds of skim milk
					 in:
(i) Bulk concentrated fluid milk products
					 and other source milk (except other source milk received in the form of an
					 unconcentrated fluid milk product) and, if paragraph (6) of this subdivision
					 applies, packaged inventory at the beginning of the month of products specified
					 in section
					 20.41(c)(1) 
					 of this Part that was not subtracted pursuant to paragraphs (5), (6) and (7) of
					 this subdivision.
(ii) Receipts of
					 fluid milk products not approved by a duly constituted health authority which
					 are excepted from the pool milk definition pursuant to section
					 20.14(b) 
					 of this Part;
(iii) Receipts of
					 fluid milk products from a producer-handler pursuant to an other order or a
					 producer-handler defined pursuant to section
					 20.12  of this
					 Part (except pool milk designated in the preamble of section
					 20.14).
(iv) Receipts of fluid milk products from a
					 handler's plant at which milk is excepted from the pool milk definition
					 pursuant to section
					 20.14(h) 
					 of this Part.
(v) Receipts of fluid
					 milk products from a handler with own farm milk, which milk is excepted from
					 the pool milk definition pursuant to section
					 20.14(i) 
					 of this Part.
(9)
					 Subtract in series beginning with Class III from the pounds of skim milk
					 remaining in Class II and Class III milk the pounds of skim milk in receipts of
					 other source milk in the form of fluid milk products from plants other than
					 those defined in section
					 20.8(b) or
					 (d)  of this Part and units other than pool
					 units for which the handler requests a Class II or Class III classification,
					 but not in any case to exceed the pounds of skim milk remaining in such
					 class.
(10) Subtract from the
					 remaining pounds of skim milk in Class II or Class III milk the pounds of skim
					 milk in bulk receipts of fluid milk products from other order plants not
					 previously assigned and for which a Class II or Class III classification is
					 requested by both the transferor and transferee handler in filing reports of
					 receipts and utilization for the month with their respective market
					 administrators, but not in any case to exceed the pounds of skim milk remaining
					 in such class.
(11) Subtract from
					 the pounds of skim milk remaining in each class, in series beginning with Class
					 III, the pounds of skim milk in fluid milk products and products specified in
					 section
					 20.41(c)(1) 
					 of this Part, in inventory at the beginning of the month that were not
					 subtracted pursuant to paragraphs (4), (6) and (8)(i) of this
					 subdivision.
(12) Add to the
					 remaining pounds of skim milk in Class III the pounds subtracted pursuant to
					 paragraph (1) of this subdivision.
(13)
(i)
					 Subtract pro rata from the pounds of skim milk remaining in Class I-B, Class II
					 and Class III milk the remaining pounds of skim milk in receipts of other
					 source milk in the form of fluid milk products from plants not defined pursuant
					 to section
					 20.8(b) or
					 (d)  of this Part and from units other than
					 pool units: provided, That if the pounds of skim milk to be assigned pursuant
					 to this subparagraph (i) of this paragraph exceed the available pounds of skim
					 milk in Class I-B, Class II, and Class III the handler shall designate the
					 priority of sources to be assigned to such classes.
(ii) No assignment shall be made pursuant to
					 this paragraph with respect to milk received from a plant not defined pursuant
					 to section
					 20.8(b) or
					 (d)  of this Part in the 401 miles and over
					 freight zone at a plant from which 50 percent or more of the gross receipts of
					 skim milk and butterfat leaves the plant in the form of fluid milk products in
					 consumer packages or dispenser inserts and is classified as Class
					 I-A.
(14) Subtract pro
					 rata from the remaining pounds of skim milk in each class the pounds of skim
					 milk in receipts from dairy farmers and from the handler's own farm which are
					 excepted from the pool milk definition pursuant to section
					 20.14(h) and
					 (i)  of this Part.
(15) Subtract in the manner specified below
					 from the pounds of skim milk remaining in each class the pounds of skim milk in
					 receipts of fluid milk products from other order plants not previously assigned
					 pursuant to paragraphs (3) and (10) of this subdivision:
(i) Subject to the provisions of this
					 paragraph, such subtraction shall be pro rata to the pounds of skim milk in
					 each class with respect to whichever of the following quantities represents the
					 higher proportion of Class II and Class III milk combined:
(a) the estimated utilization of skim milk of
					 all handlers in each class as announced for the month pursuant to section
					 20.22(d) 
					 of this Part; or
(b) the total
					 pounds of skim milk remaining in each class at this allocation step at all pool
					 plants of the handler (excluding any duplication of utilization in each class
					 resulting from transfers between pool plants of the handler).
(ii) Should the proration pursuant
					 to subparagraph (i) of this paragraph result in the total pounds of skim milk
					 at all pool plants of the handler that are to be subtracted at this allocation
					 step from Class II and Class III combined exceeding the pounds of skim milk
					 remaining in Class II and Class III at all such plants, the pounds of such
					 excess shall be subtracted from the pounds of skim milk remaining in Class I-A
					 milk and Class I-B milk after such proration at the pool plants at which such
					 other source milk was received.
(iii) Except as provided in subparagraph (ii)
					 of this paragraph, should the computations pursuant to subparagraph (i) or (ii)
					 of this paragraph result in a quantity of skim milk to be subtracted from Class
					 II and Class III combined that exceeds the pounds of skim milk remaining in
					 such classes, the pounds of skim milk in Class II and Class III combined shall
					 be increased (increasing as necessary Class III and then Class II to the extent
					 of available utilization in such classes at the nearest other pool plant of the
					 handler, and then at each successively more distant pool plant of the handler)
					 by an amount equal to such excess quantity to be subtracted, and the pounds of
					 skim milk in Class I-A milk and Class I-B milk combined shall be decreased by a
					 like amount, pro rata to remaining utilization in each such class. In such
					 case, the pounds of skim milk remaining in each class at this allocation step
					 at the handler's other pool plants shall be adjusted in the reverse direction
					 by a like amount.
(iv) Except as
					 provided in subparagraph (ii) of this paragraph, should the computations
					 pursuant to subparagraph (i) or (ii) of this paragraph result in a quantity of
					 skim milk to be subtracted from Class I-A milk or Class I-B milk that exceeds
					 the pounds of skim milk remaining in that class, the pounds of skim milk in
					 such class shall be increased by an amount equal to such excess quantity to be
					 subtracted, and the pounds of skim milk in Class II and Class III combined
					 shall be decreased by a like amount (decreasing as necessary Class III and then
					 Class II). In such case, the pounds of skim milk remaining in each class at
					 this allocation step at the handler's other pool plants shall be adjusted in
					 the reverse direction by a like amount in sequence beginning with the nearest
					 other pool plant of such handler at which Class I-A or Class I-B utilization is
					 available.
(16) If the
					 plant at which assignment is being made is a plant from which 50 percent or
					 more of the gross receipts of skim milk and butterfat in the form of fluid milk
					 products left the plant in the form of fluid milk products in consumer packages
					 or dispenser inserts and was classified as Class I-A, subtract pro rata from
					 the remaining pounds of skim milk in each class the pounds of skim milk in
					 receipts of fluid milk product from plants in the 401 miles and over freight
					 zone, not defined pursuant to section
					 20.8(b) or
					 (d)  of this Part.
(17) Subtract from the remaining pounds of
					 skim milk in Class I-A milk the pounds of skim milk in remaining receipts from
					 plants (except other order plants) of units the pool status of which has not
					 been established and which receipts have not previously been assigned pursuant
					 to paragraphs (13) and (16) of this subdivision.
(18) Subtract from the remaining pounds of
					 skim milk in each class the pounds of skim milk received in the form of fluid
					 milk products and bulk fluid cream products from other pool plants and from
					 pool units (not previously assigned pursuant to the preamble of this section),
					 in accordance with the classification assigned by the transferee handler
					 subject to the conditions of subparagraphs (i) through (iii) of this paragraph:
(i) The skim milk so assigned to any class of
					 utilization shall be limited to the amount thereof remaining in such class in
					 the transferee plant.
(ii) If the
					 transferor plant received during the month other source milk to be allocated
					 pursuant to paragraph (7) of this subdivision the skim milk so transferred
					 shall be classified so as to allocate the least possible Class I-A or I-B
					 utilization to such other source milk.
(iii) If the transferor handler received
					 during the month other source milk to be allocated pursuant to paragraph (13)
					 of this subdivision, the skim milk so transferred shall not be classified as
					 Class I-A or I-B to a greater extent than would be applicable to a like
					 quantity of such other source milk received at the transferee plant.
(19) Add to the remaining pounds
					 of skim milk in Class I-A the pounds of skim milk received directly from dairy
					 farmers or units which was deducted pursuant to the proviso in the preamble of
					 this section.
(20) If the pounds of
					 skim milk remaining in all classes exceeds the pounds of skim milk in receipts
					 from producers subtract such excess from the pounds of skim milk remaining in
					 each class in series beginning with Class III. Any amount so subtracted shall
					 be know as overage.