[Federal Register Volume 62, Number 107 (Wednesday, June 4, 1997)]
[Notices]
[Page 30564]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-14477]
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Notices
Federal Register
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This section of the FEDERAL REGISTER contains documents other than rules
or proposed rules that are applicable to the public. Notices of hearings
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Federal Register / Vol. 62, No. 107 / Wednesday, June 4, 1997 /
Notices
[[Page 30564]]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
[Docket No. DA-97-08]
Milk in the New England and Other Marketing Areas; Determination
of Equivalent Cheese Price Series
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Determination of equivalent price series.
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SUMMARY: It has been determined by the Secretary that the National
Agricultural Statistics Service (NASS) U.S. average 40-pound block
Cheddar cheese price is an equivalent cheese price alternative for use
in computing the Basic Formula Price (BFP) which is used to establish
milk prices in all Federal milk marketing orders. The Department has
been using the simple average for the month of the National Cheese
Exchange (NCE) 40-pound block Cheddar cheese price when computing the
BFP. As a result of the closing of the NCE, a new cheese price series
is needed to announce the BFP for May and future months. The NASS price
will also be used to derive a protein price and/or milk quality
adjustment in Federal milk orders that contain multiple component
pricing plans.
EFFECTIVE DATE: June 5, 1997.
FOR FURTHER INFORMATION CONTACT: John F. Borovies, Chief, Order
Formulation Branch, USDA/AMS/Dairy Division, Room 2971, South Building,
P.O. Box 96456, Washington, DC 20090-6456, (202) 720-7183, e-mail
address john_f_borovies@usda.gov.
SUPPLEMENTARY INFORMATION: This action provides an equivalent cheese
price series for calculation of the BFP which is used to derive milk
prices in all Federal milk marketing orders (7 CFR Parts 1001, 1002,
1004, 1005, 1006, 1007, 1011, 1012, 1013, 1030, 1032, 1033, 1036, 1040,
1044, 1046, 1049, 1050, 1064, 1065, 1068, 1076, 1079, 1106, 1124, 1126,
1131, 1134, 1135, 1137, 1138, and 1139). The Department has been using
the simple average for the month of the NCE 40-pound block Cheddar
cheese price data to compute the BFP. However, a new cheese price
series is needed by June 5, 1997, to announce the BFP for May and
subsequent months, and derive a protein price and/or milk quality
adjustment in 10 Federal orders which contain multiple component
pricing plans (7 CFR Parts 1030, 1033, 1036, 1040, 1049, 1065, 1068,
1076, 1079, and 1124). Order provisions provide the Secretary authority
to adopt an equivalent replacement if a price series needed to
calculate the BFP is not available.
Pursuant to the provisions of the Agricultural Marketing Agreement
Act of 1937, as amended (7 U.S.C. 601-674), and the applicable
provisions of the orders, as amended, regulating the handling of milk
in the aforesaid marketing areas, it is hereby found and determined
that:
(1) Each Federal milk marketing order provides a BFP that is
determined by the Department of Agriculture each month. The pricing
formula is based on the prices paid to dairy farmers during the
preceding month by unregulated manufacturing plants in Minnesota and
Wisconsin, adjusted for changes in dairy product prices between the
previous and current month. The NCE served as the source of prices for
40-pound block Cheddar cheese used to construct the BFP in all Federal
milk orders.
(2) The price data was also used to calculate a protein price and/
or milk quality adjustment in 10 Federal orders which contain multiple
component pricing plans.
(3) Each order provides that if for any reason a price or pricing
constituent required by the order for computing class prices or for
other purposes is not available as prescribed in the order, the market
administrator shall use a price or pricing constituent determined by
the Secretary to be equivalent to the price or pricing constituent that
is required.
(4) The NCE ceased operating after April 25, 1997. The BFP
announcement on May 5 was based on April prices reported on the NCE;
however, a new cheese price series is needed by June 5 to compute the
BFP for May and future months.
(5) The new NASS price series will be announced weekly. It will
include all transactions for bulk Cheddar cheese collected from plants
located across the United States in which trades were placed during the
previous week. Prices will be reported for the 40-pound block, 640-
pound block, and 500-pound barrel. The 40-pound block Cheddar cheese
price data will be used in the computation of the BFP.
(6) Accordingly, the new NASS U.S. average 40-pound block Cheddar
cheese price is determined to be equivalent to the NCE price series for
the purposes of computing the BFP used to establish milk prices under
all Federal milk orders and deriving a protein price, and/or milk
quality adjustment in Federal orders which contain multiple component
pricing plans.
The authority citation for 7 CFR Parts 1001 through 1139 continues
to read as follows:
Authority: 7 U.S.C. 601-674.
Dated: May 29, 1997.
Shirley R. Watkins,
Deputy Assistant Secretary, Marketing and Regulatory Programs.
[FR Doc. 97-14477 Filed 6-3-97; 8:45 am]
BILLING CODE 3410-02-P
