Virginia Administrative Code › Title 2 - AGRICULTURE › Agency 15 - STATE MILK COMMISSION › Chapter 20 - REGULATIONS FOR THE CONTROL AND SUPERVISION OF VIRGINIA'S MILK INDUSTRY › Section 2VAC15-20-70 - Classification and allocation of milk, computation of sales and shrinkage

Current through Register Vol. 40, No. 24, July 15, 2024
This section shall apply to all established marketing areas
				  and all milk and dairy products handled by distributors and shall be presumed
				  to come within the jurisdiction of the approving authority unless proven
				  otherwise by records of the distributors.
A. Classification.
1. Class I milk shall include all skim milk
				and butterfat in fluid form, including aseptically processed and packaged ultra
				high temperature pasteurized products (UHT) for human consumption in approving
				authority defined markets, which is not accounted for as Class II milk,
				provided that any fluid milk products fortified with added nonfat milk solids
				shall be Class I in amount equal only to the weight of the equal volume of like
				unfortified products of the same butterfat content. Eggnog is classified as a
				Class I product.
2. Class I-A milk
				shall include all fluid milk products identified in subdivision 1 of this
				subsection and sold for fluid human consumption in areas other than approving
				authority defined markets.
3. Class
				II milk shall include all skim milk and butterfat:
a. Used to produce sterilized products, other
				than those identified in subdivision 1 of this subsection, butter, cheese
				(including cottage cheese), yogurt, plastic and frozen cream, sour cream, dips,
				dry milk (skim or whole), condensed milk (skim or whole), ice cream, ice milk,
				and frozen desserts, or ice cream, ice milk or frozen dessert mixes, including
				basic mixtures for use in preparation of ice cream, ice milk, frozen desserts,
				or ice cream or frozen dessert mixes. All cream sales containing more than 10%
				butterfat, including half and half cream, light cream and heavy
				cream.
b. Disposed of for animal
				feed.
c. Contained in inventory of
				fluid milk products on hand at the end of the month.
d. Disposed of in bulk to any commercial food
				establishment for use on the premises in the production of soup, candy, bakery
				products, or any other nondairy food products.
e. In shrinkage of skim milk and butterfat,
				respectively, as computed pursuant to subsection B of this section, but not to
				exceed the following:
(1) Two percent of
				producer milk received at the distributor's plant, plus
(2) Two percent of milk received at the
				distributor's plant in bulk tanks from other distributors exclusive of the
				quantity for which Class II utilization was requested, less 2.0% of milk moved
				in bulk tanks to another distributor.
f. In shrinkage of skim milk and butterfat,
				respectively, prorated to other source milk in accordance with subsection B of
				this section.
4. Skim
				milk or butterfat contained in any fluid milk products dumped shall be Class II
				provided that the distributor dumping fluid milk products shall give the
				agency, during normal office hours, not less than four hours advance notice of
				his intention to dump such fluid milk products and the quantities to be so
				disposed.
5. Skim milk and
				butterfat in fluid form transferred by a distributor to another distributor
				shall be classified as follows:
a. Skim milk
				and butterfat in packaged fluid milk products shall be classified as Class I-A
				or Class I in accordance with the requested and agreed upon classification by
				the transferring and receiving distributors, provided that:
(1) The skim milk and butterfat so assigned
				to each class shall be limited to the appropriate class utilization remaining
				in the plant of the receiving distributor after computations have been made
				according to subsection D of this section; and
(2) Other source milk in the transferring
				plant is not allocated to Class I as a result of such classification of
				transferred milk.
b.
				Skim milk and butterfat in bulk fluid form shall be classified as Class II,
				provided that:
(1) The skim milk and
				butterfat so assigned to each class shall be limited to the appropriate class
				utilization remaining in the plant of the receiving distributor after
				computations have been made according to subsection D of this section;
				and
(2) Other source milk in the
				transferring plant is not allocated to Class I as a result of such
				classification of transferred milk.
c. Skim milk and butterfat in bulk fluid form
				shall be classified as Class II milk if transferred by a distributor to a plant
				which is not licensed as a distributor by the approving authority.
d. Skim milk and butterfat in packaged fluid
				form shall be classified as Class I-A if transferred to a fluid milk plant
				which is not licensed as a distributor by the approving authority.
6. Shrinkage in excess of that
				allowed to be classified as Class II in accordance with subdivision 3 e of this
				subsection shall be prorated over a distributor's Class I and Class I-A sales
				as follows:
a. Compute the total excess
				shrinkage of skim milk and butterfat, respectively, by subtracting the total
				amount of skim milk and butterfat classified as Class II under provision of
				subdivisions 3 e and f of this subsection, from the total shrinkage as
				determined in accordance with subdivision B 1 b of this section.
b. Prorate skim milk and butterfat excess
				shrinkage, respectively, obtained in subdivision 6 a of this subsection between
				(i) skim milk and butterfat sold in Class I products and (ii) skim milk and
				butterfat sold in Class I-A products.