94-12274. Milk in the Southern Michigan Marketing Area; Partial Decision on Proposed Amendments to Marketing Agreement and to Order  

  • [Federal Register Volume 59, Number 98 (Monday, May 23, 1994)]
    [Unknown Section]
    [Page 0]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 94-12274]
    
    
    [[Page Unknown]]
    
    [Federal Register: May 23, 1994]
    
    
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    DEPARTMENT OF AGRICULTURE
    7 CFR Part 1040
    
    [Docket No. AO-225-A45-R01; DA-92-10]
    
     
    
    Milk in the Southern Michigan Marketing Area; Partial Decision on 
    Proposed Amendments to Marketing Agreement and to Order
    
    AGENCY: Agricultural Marketing Service, USDA.
    
    ACTION: Proposed rule.
    
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    SUMMARY: This partial decision adopts on an expedited basis a change in 
    the pooling provisions of the Southern Michigan Federal milk order. The 
    change provides that a distributing plant located in the marketing area 
    that processes and distributes primarily aseptically processed fluid 
    milk products would be fully regulated under the order irrespective of 
    the market or markets in which the products may be distributed.
    
    FOR FURTHER INFORMATION CONTACT: Constance M. Brenner, Marketing 
    Specialist, USDA/AMS/Dairy Division, Order Formulation Branch, room 
    2971, South Building, P.O. Box 96456, Washington, DC 20090-6456, (202) 
    720-7183.
    
    SUPPLEMENTARY INFORMATION: This administrative action is governed by 
    the provisions of sections 556 and 557 of Title 5 of the United States 
    Code and, therefore, is excluded from the requirements of Executive 
    Order 12866.
        The Regulatory Flexibility Act (5 U.S.C. 601-612) requires the 
    Agency to examine the impact of a proposed rule on small entities. 
    Pursuant to 5 U.S.C. 605(b), the Administrator of the Agricultural 
    Marketing Service has certified that this action will not have a 
    significant economic impact on a substantial number of small entities. 
    The amendment will lessen the regulatory impact of the order on certain 
    milk handlers and will promote orderly marketing of milk by producers 
    and regulated handlers.
        The proposed amendment to the rules has been reviewed under 
    Executive Order 12778, Civil Justice Reform. This action is not 
    intended to have a retroactive effect. If adopted, the proposed 
    amendment will not preempt any state or local laws, regulations, or 
    policies, unless they present an irreconcilable conflict with this 
    rule.
        The Act provides that administrative proceedings must be exhausted 
    before parties may file suit in court. Under section 608c(15)(A) of the 
    Act, any handler subject to an order may file with the Secretary a 
    petition stating that the order, any provision of the order, or any 
    obligation imposed in connection with the order is not in accordance 
    with the law and requesting a modification of an order or to be 
    exempted from the order. A handler is afforded the opportunity for a 
    hearing on the petition. After a hearing, the Secretary would rule on 
    the petition. The Act provides that the district court of the United 
    States in any district in which the handler is an inhabitant, or is the 
    handler's principal place of business, has jurisdiction in equity to 
    review the Secretary's ruling on the petition, provided a bill in 
    equity is filed not later than 20 days after the date of the entry of 
    the ruling.
        Prior documents in this proceeding:
        Notice of Hearing: Issued December 3, 1992; published December 10, 
    1992 (57 FR 58418).
        Supplemental Notice of Hearing: Issued January 19, 1993; published 
    January 29, 1993 (58 FR 6447).
        Recommended Decision: Issued November 29, 1993; published December 
    6, 1993 (58 FR 64176).
        Notice of Reopened Hearing: Issued February 18, 1994; published 
    February 24, 1994 (59 FR 8874).
    
    Preliminary Statement
    
        A public hearing was held upon proposed amendments to the marketing 
    agreement and the order regulating the handling of milk in the Southern 
    Michigan marketing area. The hearing was held, pursuant to the 
    provisions of the Agricultural Marketing Agreement Act of 1937, as 
    amended (7 U.S.C. 601-674), and the applicable rules of practice (7 CFR 
    Part 900), in Grand Rapids, Michigan, on March 1, 1994, pursuant to 
    notice issued February 18, 1994 (59 FR 8874).
        Interested parties were given until March 25, 1994, to file post-
    hearing briefs on proposal No. 3 as published in the hearing notice, 
    and on whether the proposal should be considered on an expedited basis.
        The hearing notice specifically invited interested persons to 
    present evidence concerning the probable regulatory and informational 
    impact of the proposal on small businesses. However, no participants at 
    the hearing testified about any potentially adverse impacts of the 
    proposal on small businesses.
        The material issues on the record of hearing are:
        1. Modification of the recommended multiple component pricing 
    decision to compute the same protein price for both handlers and 
    producers on the basis of a cheese market price and a cheese yield 
    formula, and to include any residual value in the skim milk delivered 
    by producers in the computation of the weighted average differential 
    value.
        2. Amending the pool supply plant shipping requirement provisions 
    to allow the market administrator to adjust the shipping percentages as 
    market conditions require.
        3. Including in the pool distributing plant definition a 
    description of a plant located within the marketing area which 
    processes at least 50 percent of its fluid milk receipts as ultra-high 
    temperature fluid milk products for distribution in aseptic packages. A 
    plant qualifying as a pool distributing plant under the new provision 
    would be a pool plant under the Southern Michigan order regardless of 
    its route disposition in the marketing area of any other Federal milk 
    order.
        4. Determining whether an emergency exists to warrant the omission 
    of a recommended decision and the opportunity to file written 
    exceptions thereto with respect to issue No. 3.
        This decision deals only with issues 3 and 4. The remaining issues 
    of the original and reopened hearings will be considered in a later 
    decision on this record. Issues 3 and 4 were not considered at the 
    initial February 1993 hearing.
    
    Findings and Conclusions
    
        The following findings and conclusions on the material issues are 
    based on evidence presented at the hearing and the record thereof:
        3. Include in the pool distributing plant definition a description 
    of a plant located within the marketing area which processes at least 
    50 percent of its fluid milk receipts as ultra-high temperature fluid 
    milk products for distribution in aseptic packages. The provisions of 
    the order that relate to the basis for pooling a fluid milk plant 
    should be modified to include a distributing plant located in the 
    marketing area if the principal activity of the plant is the processing 
    and distribution of aseptically processed fluid milk products. Such 
    pool status, however, should not be dependent upon the amount of route 
    disposition in the Southern Michigan marketing area.
        The order currently provides that to qualify as a pool plant during 
    a given month, a distributing plant must have total route disposition 
    of not less than 50 percent of the combined Grade A milk received in 
    bulk at that plant direct from producers, supply plants, cooperative 
    associations, or diverted by the plant operator or cooperative. A 
    distributing plant may also be considered a pool plant in a given month 
    if it qualified as a pool plant under the same performance requirements 
    in either of the immediately preceding two months. A distributing plant 
    which also meets the pooling requirements of another marketing area is 
    regulated under the order in which it has a greater proportion of its 
    route disposition.
        Parmalat White Knight Packaging Corporation (White Knight), a 
    proprietary handler, proposed that the order be amended to accommodate 
    the operations of its milk plant located at Wyoming, Michigan. The 
    plant is located within the defined marketing area. A witness for White 
    Knight testified that the plant processes, packages, and distributes 
    fluid milk products that are processed at ultra high temperatures and 
    packaged in aseptic containers. The witness indicated that the aseptic 
    process includes the use of ultra high temperature pasteurization, and 
    that the resulting products, commonly referred to as ``UHT'' milk, 
    could be stored unrefrigerated.\1\ The proprietary handler proposed 
    that this type of plant be a pool plant if it is located in the 
    Southern Michigan marketing area and meets the current performance 
    requirements for a distributing plant, except for the requirement that 
    the plant is regulated where the greatest proportion of its route 
    disposition occurs. The proponent stated that the intent of the 
    proposal is to pool its plant under the Southern Michigan order, 
    irrespective of the level of route sales in this or other markets.
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        \1\``UHT'' milk, however, refers only to the pasteurization 
    process that is used in producing an aseptically processed milk 
    product. For this reason, it is more appropriate for purposes of 
    order provisions to refer to the products involved as aseptically 
    processed fluid milk products rather than UHT milk. To simplify the 
    presentation of the findings and conclusions, however, and because 
    of the common usage of the term ``UHT'', reference is made in the 
    decision to UHT milk or milk products and UHT plant.
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        The White Knight spokesman cited several reasons why the proposal 
    should be adopted. One reason cited was the nature of UHT milk 
    products. According to the witness, fluid milk products processed at 
    ultra high temperatures and packaged in aseptic containers can be 
    stored at room temperature for nine months, in contrast to typical 
    fluid milk products, which must be refrigerated and have relatively 
    short shelf lives. As a result, when compared to the regularly-
    scheduled and relatively local distribution of fluid milk products, 
    White Knight has the ability to distribute its products at more 
    infrequent intervals and over a much broader geographical territory. 
    White Knight's milk supply is procured from two cooperatives which 
    represent 80 percent of producer milk in the order. Because of the 
    typical procurement but unique distribution patterns, the proponent 
    asserted, the current pooling provisions create a disincentive against 
    local producers supplying a local Class I plant.
        The nature of the proponent's dairy products has led to chaotic 
    marketing conditions, the witness stated. Due to the distribution and 
    sales patterns of its aseptically-packaged products, the regulatory 
    status of the UHT plant has shifted from order to order, even on a 
    monthly basis. The witness noted that in the five months beginning in 
    September 1993, the plant was pooled under four different federal 
    orders: Carolina, New Orleans-Mississippi, Southeastern Florida, and 
    Tampa Bay. In a recent month, proponent's products were sold in 17 
    federal order marketing areas, in addition to unregulated territory. 
    Almost half of the proponent's sales were in unregulated areas.
        The witness stated that continual change in regulation under 
    different federal orders puts the proponent at a competitive 
    disadvantage to handlers who know with certainty under which order they 
    will be regulated, because advance knowledge of the Class I price 
    virtually is eliminated for the proponent. This has made it difficult 
    for the proponent to price and sell its products because its costs are 
    not known in advance.
        The witness noted that the administrative costs of tracking 
    distribution and sales patterns are greater with the regulatory shifts. 
    Additional administrative effort and time on the part of the market 
    administrator, the proprietary handler, and the cooperative supplier is 
    necessary to obtain information detailing where the milk originates and 
    where the product is sold to consumers. Because of the numerous areas 
    in which the handler markets products, the witness testified, it is 
    more difficult for the handler to properly report its sales of UHT milk 
    on a monthly basis. Payroll information requirements are duplicated in 
    both the originating and the pooling orders and are necessary for all 
    producers' milk that is shipped to the plant during the month. Because 
    the producers whose milk is shipped to the proponent's plant may vary 
    during the month, more administrative work is created. The variation of 
    reports required under different orders also requires additional time 
    each month. The process would be simplified for the market 
    administrator, handler, and cooperative if regulation were maintained 
    under only one order.
        Moreover, some markets under which the proponent's plant has been 
    pooled have base-excess plans, such as the Carolina order. According to 
    proponent's post-hearing brief, because the group of producers whose 
    milk is supplied to the proponent changes somewhat each month, little 
    or no base would be accumulated, even under continuous regulation, in a 
    market that uses a base-excess plan. Hence, producers supplying the 
    predominantly Class I White Knight plant would be penalized by 
    receiving the excess or Class III price. The brief continues by noting 
    that failure to earn base creates a disincentive for producers to 
    supply a Class I plant, which is not the intent of the base-excess 
    provisions or the Federal Order program.
        In proponent's view, failure to adopt its lock-in proposal on an 
    expedited basis would cause continuation of disruptive market 
    conditions, operational problems for the UHT plant, administrative 
    problems for the various orders, competitive uncertainty for the 
    proponent, and payment problems for producers.
        A witness representing Independent Cooperative Milk Producers 
    Association (ICMPA) and Michigan Milk Producers Association (MMPA) also 
    testified in support of proposals 3 and 4. The entire milk supply for 
    the White Knight plant is obtained from ICMPA and MMPA. The witness 
    concurred with the proponent's testimony. He stated that continuing to 
    sell milk to the plant puts producers whose milk is shipped to White 
    Knight in an inequitable situation with other order producers, and that 
    various Class I differentials adjusted for location are disruptive to 
    the order. Some milk destined for White Knight has been reloaded at a 
    plant located within the marketing area to insure that it will be 
    pooled under the order. The witness testified that reloading is not 
    practical and results in increased costs for the supplying cooperative 
    and White Knight.
        The supplying cooperatives' witness also raised concerns about 
    base-excess possibilities. The witness stated that by shipping the milk 
    to White Knight, the cooperative is accepting the price that will be 
    received for it. ICMPA, he testified, does not want to supply a handler 
    and receive less value for the milk than would have been received if 
    the milk were sold for utilization within the market area. The witness 
    also testified that the potential of being pooled under a base-excess 
    order, in months when milk in excess of an established base is assigned 
    a lower value, could cause the supplying cooperative to deny shipments 
    of milk to the distributing plant.
        No opposition to the proposal was expressed at the hearing or in 
    briefs.
        The record evidence indicates that fluid milk products have been 
    processed at the proponent's plant since September 1993; currently, UHT 
    pasteurization and aseptic packaging are used in the manufacturing of 
    all dairy products. Most of the plant's milk utilization is classified 
    as Class I, and a small amount of the milk is classified as Class III. 
    White Knight purchases milk from two cooperatives which represent 
    approximately 80 percent of producer milk in the order.
        The proponent's distribution channels for UHT fluid milk are 
    substantially different from those used to distribute fluid milk 
    products that require refrigeration. These latter products generally 
    are distributed through frequent deliveries by distributing plants to 
    stores within the marketing area. According to record evidence, the 
    proponent's products are distributed as far away as the Caribbean and 
    in a substantial number of federal order areas each month.
        Under current provisions, a distributing fluid milk plant that 
    qualifies for pooling under more than one order during the same month 
    is regulated under the order in which such plant's route distribution 
    is the greatest. Such a provision normally assures that all handlers 
    having their principal sales in a market are subject to the same 
    pricing and other regulatory requirements. However, because of its 
    products' distribution patterns, the proponent's UHT plant has yet to 
    be regulated under any one particular order on a regular basis. The 
    problems that have occurred from such pooling uncertainties are severe 
    enough to override the traditional basis for pooling a distributing 
    plant.
        Shifting regulatory status of the proponent's plant between orders 
    creates uncertainty, which is not conducive to maintaining market 
    stability in the Southern Michigan market, and may affect other markets 
    adversely, as well. For example, the Class I differential at the 
    Wyoming location, $1.70 under the Southern Michigan order, ranges for 
    the four orders under which the plant has been regulated from $1.175 
    under the New Orleans-Mississippi order to $1.54 under the Southeastern 
    Florida order, a range of 36.5 cents per hundredweight. Such price 
    changes create serious marketing problems to the proponent in 
    determining what price to place on the various UHT products. The 
    supplying cooperatives also experience difficulty in pricing milk to 
    White Knight due to the broad geographic area of the plant's product 
    distribution, and uncertainty about the level and the basis of returns 
    they receive for their milk if the regulatory status of the plant is 
    unstable.
        Prices received by producers under an order are influenced by the 
    amount of the Class I differential, the market utilization of milk, the 
    applicable location adjustments, and method of payment. Since these 
    factors vary from order to order, producer prices at the White Knight 
    UHT plant vary considerably when the plant shifts regulation from one 
    order to another on the basis of sales shifts. Under these disorderly 
    circumstances, producers would find it disruptive to their operations 
    and long-range planning to shift from one market to another. When 
    regulated by one order, pay prices for producers supplying the 
    proponent's plant would be the same as for other producers shipping to 
    plants in the same zone. In addition, producers whose milk is pooled 
    regularly under the various orders under which White Knight may become 
    regulated may find their pay prices fluctuating and disrupted.
        The record evidence indicates that both the proponent and its milk 
    suppliers are concerned with the possibility that the plant might be 
    regulated under an order with a base-excess plan during months in which 
    milk in excess of an established base is assigned a lower value. 
    Without an established milk production base, the milk would be priced 
    at the excess price.2 White Knight would be unable to attract an 
    adequate supply of milk if it were known that the milk would be excess 
    milk in a marketing area with a base-excess plan. Therefore, the 
    continued milk supply for the UHT plant is threatened unless current 
    order provisions are amended. Under the circumstances described in the 
    record, consideration must be given to regulating the plant in the 
    market in which there is reasonable assurance that it will have 
    available an adequate supply of producer milk.
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        \2\Currently, 7 of 39 orders have this plan; months in which 
    excess milk is assigned a lower value than base milk range from 
    February through August depending on the order.
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        It is concluded that overall market stability will tend to be 
    maintained and the regulatory stability of the White Knight UHT plant 
    (or any other such plant) will tend to be assured if the order is 
    modified along the lines proposed. The order will specify that the 
    principal activity at such a plant must be the processing and 
    distribution of aseptically processed fluid milk products. Such a 
    requirement is intended to assure that a plant would not be able to be 
    pooled under the particular pooling provision at issue unless at least 
    one-half of the plant's fluid milk receipts are processed and 
    distributed in the form of aseptically processed fluid milk products. 
    Thus, the plant would have some operating flexibility.
        Under the lock-in provision adopted herein, the Southern Michigan 
    order would regulate the Wyoming UHT plant (or any other similar plant) 
    even though it had a greater proportion of its route distribution in 
    the marketing area of another order. The intent of this pooling 
    arrangement may be in conflict with the pooling requirements of another 
    order since the other order may not have a complementary provision 
    which will permit the plant to be locked in under the Southern Michigan 
    order. It is not possible to eliminate pooling conflicts between the 
    provisions of the Southern Michigan order and other orders by amending 
    only the Southern Michigan order. Thus, whenever such a pooling 
    conflict arises, an administrative decision as to the order under which 
    the plant shall be pooled may be necessary, depending upon the 
    particular provisions of each order and the intent of maintaining 
    Southern Michigan regulation for a UHT plant located within the 
    marketing area.
        4. Emergency Action. The omission of a recommended decision was 
    proposed by proponent of the lock-in proposal that was discussed above 
    as issue 3. The witness representing the supplying cooperatives also 
    stated support for an emergency decision. No testimony was received in 
    opposition to emergency action. The testimony and data in the record of 
    this proceeding strongly indicate the need for prompt amendatory 
    action. The evidence shows it is desirable to have an amended order 
    effective as soon as possible to minimize the disorderly marketing 
    conditions currently facing the UHT plant. The normal procedure of 
    issuing a recommended decision and providing time to file exceptions 
    thereto would further the disorderly market conditions that the UHT 
    plant is facing.
        It is therefore found that due and timely execution of the 
    Secretary's function in this proceeding imperatively and unavoidably 
    requires omission of the recommended decision and the opportunity for 
    filing exceptions thereto.
    
    Rulings on Proposed Findings and Conclusions
    
        A brief and proposed findings and conclusions were filed on behalf 
    of White Knight. The brief, proposed findings and conclusions, and the 
    evidence in the record were considered in making the findings and 
    conclusions set forth above. No opposition to either the lock-in 
    proposal or to emergency consideration was received in testimony or in 
    proposed findings and conclusions.
    
    General Findings
    
        The findings and determinations hereinafter set forth supplement 
    those that were made when the Southern Michigan order was first issued 
    and when it was amended. The previous findings and determinations are 
    hereby ratified and confirmed, except where they may conflict with 
    those set forth herein.
        (a) The tentative marketing agreement and the order, as hereby 
    proposed to be amended, and all of the terms and conditions thereof, 
    will tend to effectuate the declared policy of the Act;
        (b) The parity prices of milk as determined pursuant to section 2 
    of the Act are not reasonable in view of the price of feeds, available 
    supplies of feeds, and other economic conditions which affect market 
    supply and demand for milk in the marketing area, and the minimum 
    prices specified in the tentative marketing agreement and the order, as 
    hereby proposed to be amended, are such prices as will reflect the 
    aforesaid factors, insure a sufficient quantity of pure and wholesome 
    milk, and be in the public interest; and
        (c) The tentative marketing agreement and the order, as hereby 
    proposed to be amended, will regulate the handling of milk in the same 
    manner as, and will be applicable only to persons in the respective 
    classes of industrial and commercial activity specified in, a marketing 
    agreement upon which a hearing has been held.
    
    Marketing Agreement and Order
    
        Annexed hereto and made a part hereof are two documents, a 
    Marketing Agreement regulating the handling of milk, and an Order 
    amending the order regulating the handling of milk in the Southern 
    Michigan marketing area, which have been decided upon as the detailed 
    and appropriate means of effectuating the foregoing conclusions.
        It is hereby ordered, That this entire decision and the two 
    documents annexed hereto be published in the Federal Register.
    
    Determination of Producer Approval and Representative Period
    
        January 1994 is hereby determined to be the representative period 
    for the purpose of ascertaining whether the issuance of the order, as 
    amended and as hereby proposed to be amended, regulating the handling 
    of milk in the Southern Michigan marketing area is approved or favored 
    by producers, as defined under the terms of the order (as amended and 
    as hereby proposed to be amended), who during such representative 
    period were engaged in the production of milk for sale within the 
    aforesaid marketing area.
    
    List of Subjects in 7 CFR Part 1040
    
        Milk marketing orders.
    
        Dated: May 12, 1994.
    Patricia Jensen,
    Acting Assistant Secretary, Marketing and Inspection Services.
    
    Order Amending the Order Regulating the Handling of Milk in the 
    Southern Michigan Marketing Area
    
        This order shall not become effective unless and until the 
    requirements of Sec. 900.14 of the rules of practice and procedure 
    governing proceedings to formulate marketing agreements and marketing 
    orders have been met.
    
    Findings and Determinations
    
        The findings and determinations hereinafter set forth supplement 
    those that were made when the order was first issued and when it has 
    been amended. The previous findings and determinations are hereby 
    ratified and confirmed, except where they may conflict with those set 
    forth herein.
        (a) Findings. A public hearing was held upon certain proposed 
    amendments to the tentative marketing agreement and to the order 
    regulating the handling of milk in the Southern Michigan marketing 
    area. The hearing was held pursuant to the provisions of the 
    Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601-
    674), and the applicable rules of practice and procedure (7 CFR part 
    900).
        Upon the basis of the evidence introduced at such hearing and the 
    record thereof, it is found that:
        (1) The said order as hereby amended, and all of the terms and 
    conditions thereof, will tend to effectuate the declared policy of the 
    Act;
        (2) The parity prices of milk, as determined pursuant to section 2 
    of the Act, are not reasonable in view of the price of feeds, available 
    supplies of feeds, and other economic conditions which affect market 
    supply and demand for milk in the aforesaid marketing area; and the 
    minimum prices specified in the order as hereby amended are such prices 
    as will reflect the aforesaid factors, insure a sufficient quantity of 
    pure and wholesome milk, and be in the public interest; and
        (3) The said order as hereby amended regulates the handling of milk 
    in the same manner as, and is applicable only to persons in the 
    respective classes of industrial or commercial activity specified in, a 
    marketing agreement upon which a hearing has been held.
    
    Order Relative to Handling
    
        It is therefore ordered, That on and after the effective date 
    hereof, the handling of milk in the Southern Michigan marketing area 
    shall be in conformity to and in compliance with the terms and 
    conditions of the order, as amended, and as hereby amended, as follows:
    
    PART 1040--MILK IN THE SOUTHERN MICHIGAN MARKETING AREA
    
        1. The authority citation for 7 CFR part 1040 continues to read as 
    follows:
    
        Authority: Secs. 1-19, 48 Stat. 31, as amended; 7 U.S.C. 601-
    674.
    
    
    Sec. 1040.5  [Amended]
    
        2. Section 1040.5 is amended by removing the phrase ``in the 
    marketing area'' at the end of the section.
        3. Section 1040.7 is amended by revising the introductory text of 
    the section, paragraph (a), and the first sentence of the introductory 
    text of paragraph (b), to read as follows:
    
    
    Sec. 1040.7  Pool plant.
    
        Pool plant means:
        (a) A distributing plant:
        (1) From which total route disposition, except filled milk, during 
    the month is not less than 50 percent of the combined Grade A milk 
    received in bulk at such plant direct from producers, from supply 
    plants, from a cooperative association as described in Sec. 1040.9(c) 
    or diverted by the plant operator or by a cooperative association 
    pursuant to Sec. 1040.13 as producer milk, except as provided in 
    paragraph (c) of this section; or
        (2) That qualified as a pool plant in either of the immediately 
    preceding 2 months on the basis of performance standards described in 
    paragraph (a)(1) of this section, except as provided in paragraph (c) 
    of this section; or
        (3) That meets the following conditions, regardless of the 
    provisions of paragraph (c) of this section:
        (i) The plant is located in the marketing area;
        (ii) The plant has total route disposition, except filled milk, 
    during the month of not less than 50 percent of the combined Grade A 
    milk received in bulk at such plant direct from producers, from supply 
    plants, from a cooperative association as described in Sec. 1040.9(c) 
    or diverted by the plant operator or by a cooperative association 
    pursuant to Sec. 1040.13 as producer milk; and
        (iii) The principal activity of such plant is the processing and 
    distributing of aseptically processed fluid milk products.
        (b) Except as provided in paragraph (c) of this section, a supply 
    plant which during the month meets one of the performance requirements 
    specified in paragraph (b) (1), (2), (3) or (4) of this section. * * *
    * * * * *
    
    Marketing Agreement Regulating the Handling of Milk in Certain 
    Marketing Areas
    
        The parties hereto, in order to effectuate the declared policy of 
    the Act, and in accordance with the rules of practice and procedure 
    effective thereunder (7 CFR part 900), desire to enter into this 
    marketing agreement and do hereby agree that the provisions referred to 
    in paragraph I hereof as augmented by the provisions specified in 
    paragraph II hereof, shall be and are the provisions of this marketing 
    agreement as if set out in full herein.
        I. The findings and determinations, order relative to handling, and 
    the provisions of Secs. __________\1\ to __________, all inclusive, of 
    the order regulating the handling of milk in the (__________ Name of 
    order __________) marketing area (7 CFR __________ PART __________\2\) 
    which is annexed hereto; and
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        \1\First and last sections of order.
        \2\Appropriate part number.
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        II. The following provisions: Sec. __________\3\ Record of milk 
    handled and authorization to correct typographical errors.
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        \3\Next consecutive section number.
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        (a) Record of milk handled. The undersigned certifies that he/she 
    handled during the month of __________\4\, __________ hundredweight of 
    milk covered by this marketing agreement.
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        \4\Appropriate representative period for the order.
    ---------------------------------------------------------------------------
    
        (b) Authorization to correct typographical errors. The undersigned 
    hereby authorizes the Director, or Acting Director, Dairy Division, 
    Agricultural Marketing Service, to correct any typographical errors 
    which may have been made in this marketing agreement.
        Sec. __________\3\ Effective date. This marketing agreement shall 
    become effective upon the execution of a counterpart hereof by the 
    Secretary in accordance with Section 900.14(a) of the aforesaid rules 
    of practice and procedure.
        In Witness Whereof, The contracting handlers, acting under the 
    provisions of the Act, for the purposes and subject to the limitations 
    herein contained and not otherwise, have hereunto set their respective 
    hands and seals.
    
    Signature
    
    By (Name)--------------------------------------------------------------
    (Title)----------------------------------------------------------------
    (Address)--------------------------------------------------------------
    
    (Seal)
    Attest
    [FR Doc. 94-12274 Filed 5-20-94; 8:45 am]
    BILLING CODE 3410-02-P
    
    
    

Document Information

Published:
05/23/1994
Department:
Agriculture Department
Entry Type:
Uncategorized Document
Action:
Proposed rule.
Document Number:
94-12274
Pages:
0-0 (1 pages)
Docket Numbers:
Federal Register: May 23, 1994, Docket No. AO-225-A45-R01, DA-92-10
CFR: (2)
7 CFR 1040.5
7 CFR 1040.7