32.24.525    PROCEDURES, PURCHASE PRICE, AND TERMS FOR INTERPLANT SALES BETWEEN POOL HANDLERS

(1) A pool handler is in compliance with the requirements of ARM 32.24.524 if it calls for milk or makes milk available in the following manner:

(a) On Wednesday of the preceding week, a requesting pool handler in need of milk may communicate its milk needs for the coming week to a pool handler reasonably believed to have milk. The solicited pool handler must communicate its confirmation or rejection of the order back by Friday of that same week.

(b) Delivery to the requesting pool handler is the responsibility of the solicited pool handler.

(c) No pool handler is obligated to make milk available to any other pool handler who is then in default on payment for any previous purchases of milk.

(2) The purchase price at which a pool handler must make milk available and at which a pool handler must purchase milk is the utilization value based on the usage by class of the purchasing pool handler for such milk. This utilization value is calculated in the month following the month of transfer by the bureau using announced prices for the month in which the sale(s) took place.

(a) The bureau will calculate and communicate the purchase price to the selling and purchasing pool handlers on or before the 13th day of each month following the sale, or first business day thereafter. The pool handlers involved are responsible for making the appropriate invoice and payment.

(b) Premiums, hauling, or handling fees may not be charged to the purchasing pool handler.

(3) A pool handler who purchases milk agrees to pay the purchase price for all milk delivered on a monthly basis, with payment due by the last day of the month following delivery.

(4) The purchase price calculated in (2) is included in the amount the selling pool handler owes the pool settlement fund.

(a) A negative adjustment will be made to the utilization value that the selling pool handler owes the pool settlement fund for transportation charges incurred by the selling pool handler for shipments of bulk milk between pool plants.

(5) All milk purchased and sold must, at the time of delivery, meet all applicable local, state, and federal laws and regulations and any tendered milk that does not meet applicable standards may be rejected.

(6) The weight and butterfat tests are determined on the basis of producer ticket weights and tests. If the purchasing pool handler contests the reported weights, it may notify the bureau, which may reconcile any discrepancies.

(7) The bureau has full authority to direct the transfer of milk as necessary to implement ARM 32.24.524 and has the authority to issue alternative or additional procedures as necessary to implement this provision.

History: 81-23-101, 81-23-103, 81-23-104, 81-23-302, 81-23-402, MCA; IMP, 81-23-101, 81-23-103, 81-23-104, 81-23-302, 81-23-402 MCA; NEW, 2000 MAR p. 3413, Eff. 12/8/00; AMD, 2005 MAR p. 2680, Eff. 12/23/05; AMD, 2017 MAR p. 1151, Eff. 8/1/17.