Haw. Code R. § 4-60-10 - Minimum prices in the Hawaii milk shed
(a) Minimum prices
to be paid by distributors or producer-distributors to producers or
producerdistributors for fresh milk produced for sale in the Hawaii milk shed
are established on the basis of the utilization for class I milk, class I skim
milk, and class II milk as provided in this section. Upon petition by a
producer or producerdistributor, the board may grant a waiver allowing the
producer or producerdistributor to sell its milk at less than the minimum price
if it is demonstrated that the lower price takes into consideration the
standards for determining the minimum prices for milk set forth in section
157-32,
Hawaii Revised Statutes.
(b) The
minimum price of class I milk is established at $29.53 per hundredweight of
milk, based on milk with a butterfat content of 3.3 per cent. The minimum price
for class I milk shall be increased by seven cents per hundredweight for each
.1 percent of butterfat above 3.3 per cent up to and including 3.5 per cent or
shall be decreased by seven cents per hundredweight for each .1 per cent of
butterfat below 3.3 per cent. Minimum price for class I skim milk utilized in
filled milk is established at the class I price less seven cents per
hundredweight for each .1 per cent of butterfat up to 3.3 per cent to allow for
the required-usage of any fat or oil other than butterfat. A minimum class I
fresh skim milk price shall be paid for all milk produced over and above the
class I milk utilized in all other class I products and will be allocated pro
rata to all quota holders up to their monthly quotas. A distributor or
producer-distributor may utilize class 1 skim milk produced in excess of the
total monthly quotas provided that it is paid for at the above established
price
(c) The minimum price for
class II milk is established on a formula basis to reflect the cost to the
distributor or producer-distributor of replacing the constituents contained in
class II milk. The formula shall be predicated upon the monthly average price
of imported milk constituents delivered to the processing plant, less
reasonable costs incurred by the distributor or producer-distributor in making
the constituents available and usable in class II uses. On or before the eighth
day of each calendar month, each distributor or producer-distributor shall
report its computed replacement cost for milk constituents for the previous
month based on the factors in this subsection. The replacement costs and
computations therefore shall be subject to audit by the branch. In its monthly
report, the distributor or producer-distributor shall report the total pounds
of fresh milk utilized in class II uses. The branch shall then compute the
total value of all fresh milk utilized in class II uses by each distributor or
producer-distributor based on their prior month's replacement costs and shall
then pool the costs of all distributors and producer-distributors to determine
an average price for all class II milk utilized. Payments to producers shall be
based upon the class II price.
(d)
Actual plant shrinkage and route returns up to, but not to exceed one per cent
of the total fresh milk received for processing shall be paid for at the fresh
milk replacement cost, class II price or on a negotiated formula
basis.
Notes
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