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NEWFOUNDLAND AND LABRADOR
REGULATION 68/98

Milk Scheme, 1998
under the
Natural Products Marketing Act

Amended by:

80/01
63/16
50/17

NEWFOUNDLAND AND LABRADOR
REGULATION 68/98

Milk Scheme, 1998
under the
Natural Products Marketing Act

(Filed July 20, 1998)

Under the authority of section 11 of the Natural Products Marketing Act , the minister makes the following Order.

Dated at St. John’s , July 10, 1998.

Kevin Aylward
Minister of Forest Resources and Agrifoods

ORDER

Analysis



Short title

        1. This Order may be cited as the Milk Scheme, 1998.

68/98 s1

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Definitions

        2. In this Order

             (a)  "Act" means the Natural Products Marketing Act ;

             (b)  "APMB" means the Agricultural Products Marketing Board;

             (c)  "dairy" means a place where milk is gathered or produced for processing and packaging for sale or resale;

             (d)  "DFNL" means the Dairy Farmers of Newfoundland and Labrador constituted under section 4;

             (e)  "director" means a director of the DFNL elected under section 4;

             (f)  "distributor" means a person engaged in selling or distributing milk or milk products directly or indirectly to consumers and includes a processor and a dairy operator;

             (g)  "HRI tradesperson" means a person engaged in buying milk for the purposes of resale to the public through a food services premises;

             (h)  "licence" means a licence issued by the DFNL;

              (i)  "milk" includes all classes and grades of cows fluid milk whether whole, reduced or flavoured and shall include cream and reconstituted milk and ultra high temperature (UHT) milk;

              (j)  "minister" means the minister appointed under the Executive Council Act to administer the Act;

             (k)  "person" includes a body of persons whether incorporated or not;

              (l)  "processing" means heating, pasteurizing, evaporating, drying, churning, freezing, separating into component parts, combining with other substances by any process or otherwise treating milk in the manufacture, packaging and preparation of a food product and may include distribution;

           (m)  "processor" means a person engaged in the processing of milk;

             (n)  "producer" means a person engaged in the collection or manufacture of milk for marketing purposes and does not include a person who produces milk for his or her own use or that of his or her family;

             (o)  "quota" means a daily production quota issued to a producer by the DFNL;

             (p)  "reconstituted milk" means milk powder to which water or other ingredients have been added;

             (q)  "registered processor" means a processor who holds a valid licence issued by the DFNL;

              (r)  "registered producer" means a producer who holds a valid licence issued by the DFNL;

             (s)  "retailer" means a person who buys the product for resale to a consumer; and

              (t)  "vehicle" means a device in which or upon which a person or thing may be transported.

68/98 s2

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Purpose and application

        3. (1) The purpose and intent of this Scheme is to provide for the promotion, control and regulation of the production and marketing of milk within the province, including the prohibition of the production and marketing of milk.

             (2)  This Scheme shall apply to all producers, HRI tradespersons, retailers, processors, distributors, dairy operators and other persons engaged in the production and marketing of milk.

68/98 s3

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Name and constitution of DFNL

        4. (1) There shall be a commodity board known as the Dairy Farmers of Newfoundland and Labrador, and the Newfoundland Milk Marketing Board is continued under the name of the Dairy Farmers of Newfoundland and Labrador .

             (2)  The DFNL shall consist of not more than 7 directors elected or appointed as prescribed by this section.

             (3)  Six directors of the DFNL shall be registered producers and they shall be elected by registered producers for a 2 year term.

             (4)  Of the 6 directors elected under subsection (3),

             (a)  2 shall be elected from the East Dairy Zone;

             (b)  one shall be elected from the Central Dairy Zone;

             (c)  2 shall be elected from the West Dairy Zone; and

             (d)  one shall be elected at large.

             (5)  The dairy zones referred to in subsection (4) shall be described in the Schedule.

             (6)  The minister may appoint one person as a director of the DFNL for a 2 year term.

             (7)  The DFNL shall be operated on a fiscal year as follows:

             (a)  commencing on January 1, 2001, from that date until July 31, 2001; and

             (b)  commencing on August 1, 2001, from August 1 in a year until July 31 in the immediately following year.

             (8)  The DFNL shall call a general meeting of all registered producers to be held within 3 months of the end of the fiscal year in every year.

             (9)  The chairperson and vice chairperson of the DFNL shall be registered producers and shall be elected from and by the DFNL directors for 2 year terms.

          (10)  The term of a director who is a registered producer shall expire if that director ceases to be a registered producer.

          (11)  Subsection (10) includes the chairperson and the vice-chairperson of the DFNL, but does not include a director appointed by the minister under subsection (6).

          (12)  A quorum shall consist of a majority of the directors of the DFNL.

          (13)  If at a meeting of the DFNL there is an equality of votes inclusive of his or her own vote, the director of the DFNL presiding at the meeting has a second or casting vote.

          (14)  A director of the DFNL may not vote at a meeting of the DFNL if he or she is in arrears in a payment to the DFNL.

          (15)  When a vacancy occurs among the directors of the DFNL before the expiry of that director’s term of office the DFNL may, in its discretion, hold a special election.

          (16)  The DFNL may, by a majority vote of the directors of the DFNL, remove a director of the DFNL who, without reasonable excuse, is absent from 3 consecutive meetings of the DFNL.

          (17)  Notwithstanding that it is discovered that there was some defect in the appointment, election or qualifications of a person as a director of the DFNL, all acts of the DFNL shall be as valid as if it were and had been validly constituted.

          (18)  The DFNL shall be a body corporate and shall have perpetual succession and a common seal and may sue and be sued in a court.

          (19)  Notwithstanding subsection (1), directors of the Newfoundland Milk Marketing Board appointed or elected prior to the coming into force of this Scheme shall continue as directors of the DFNL for the remainder of their term.

          (20)  Nothing in this Scheme shall affect the validity of a policy or directive of the Newfoundland Milk Marketing Board made prior to the coming into force of this Scheme.

68/98 s4; 80/01 s1; 63/16 s1

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Financial operations

        5. (1) The DFNL shall have its accounts audited annually within 3 months after the end of the fiscal year.

             (2)  An audit conducted under subsection (1) shall be conducted in accordance with generally accepted accounting principles.

             (3)  Within 3 months after the end of its fiscal year or at the annual meeting, the DFNL shall provide to registered producers and the APMB copies of the annual statement of operations and the financial report of the DFNL.

68/98 s5

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Duties of the DFNL

        6. The DFNL shall promote, regulate and control the production and marketing of milk in the province by producers, processors, distributors, retailers, dairy operators and HRI tradespersons.

68/98 s6

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Agreement with other bodies

        7. Under the authority of subsection 9(2) of the Act and subject to the prior written approval of the APMB, the DFNL may

             (a)  co-operate with and enter into agreements with the Government of Canada, another province, a department, agency, board, council or body under the jurisdiction of the Parliament of Canada or the Legislature of a province of Canada in a manner and to an extent that may be necessary or desirable to produce, market, promote, facilitate, control, regulate or prohibit the production or marketing of milk and act with any government, department, agency, board, council or body; and

             (b)  enter into an agreement with the Government of Canada under the Farm Products Marketing Agencies Act (Canada) and implement the provisions of it by making the rules, orders and regulations and carrying out the acts that may be necessary to implement and to enable any persons or agency referred to in the agreement to implement a plan contemplated by the agreement.

68/98 s7

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Powers of the DFNL

        8. Under the authority of subsection 9(2) of the Act, the DFNL may

             (a)  establish offices for the purposes of carrying out this Scheme and appoint those officers, inspectors and other employees that may be necessary for the administration of this Scheme;

             (b)  prescribe the terms and conditions of employment of the officers, inspectors and employees appointed under paragraph (a);

             (c)  establish and fix the wages, salaries and remuneration of the directors and employees of the DFNL, including travelling expenses;

             (d)  exempt a person or classes of persons engaged in the production and marketing of milk from this Scheme;

             (e)  require persons engaged in the production and marketing of milk to provide the information that the DFNL may require;

             (f)  inspect the books and premises of persons engaged in the production and marketing of milk;

             (g)  subject to the prior written approval of the APMB, fix, impose and collect service charges, levies or fees for the production and marketing of milk and use the money received to carry out the provisions of this scheme;

             (h)  seize, detain, and dispose of milk which has been produced or marketed in violation of the Act, this scheme, and any regulations made under it;

              (i)  require a person in charge of a vehicle believed to be conveying milk to stop the vehicle and permit an inspector or other person appointed by the DFNL to inspect the vehicle and its contents;

              (j)  require a person to permit an inspector or other person appointed by the DFNL for the purpose to inspect property on which milk is kept or suspected of being kept and to permit entry by the inspector upon property and into a building or structure for the purpose of carrying out an inspection;

             (k)  provide for the production or marketing of milk on a quota basis with provision made for new entrants into production as the provincial quota increases;

              (l)  fix and allot, or refuse to fix and allot to producers, quotas for the production or marketing of milk on the basis that it considers proper;

           (m)  cancel, reduce, or refuse to increase a quota fixed and allotted to a producer for the production or marketing of milk that the DFNL considers proper;

             (n)  prescribe the terms and conditions upon which a producer may produce or market milk in excess of the quota fixed and allotted to him or her;

             (o)  prohibit

                      (i)  a producer to whom a quota has not been fixed and allotted for the production or marketing of milk,

                     (ii)  a registered producer whose quota has been cancelled, and

                    (iii)  a registered producer who has been marketing milk in excess of the quota,

from marketing milk;

             (p)  provide for the licensing of producers processors, retailers, HRI tradespersons, distributors, dairy operators, and other persons engaged in the production or marketing of milk and provide the form of licences and the terms and conditions upon which licences may be issued, refused, renewed, suspended or revoked;

         (p.1)  prescribe quality standards and practices in relation to milk;

         (p.2)  impose penalties;

         (p.3)  prescribe the terms and conditions under which penalties referred to in paragraph (p.2) are payable, the amount of the penalties, the method by which the penalties are calculated and the times at which the penalties are payable;

             (q)  prohibit producers from engaging in the production or marketing of the milk except under the authority of a licence;

              (r)  adopt, determine and set a minimum price to be paid to producers for the marketing of the milk;

             (s)  purchase, lease or otherwise acquire and sell and dispose of real and personal property, borrow money upon security and do other things that may be necessary or desirable to implement the provisions of this scheme or receive, from a source, lands, buildings, money or other property by way of gift or trust for public use or for the use of the DFNL; and

              (t)  make those orders and regulations and the taking of that action that may be necessary to enforce the provisions of this Scheme or an order or regulation made under it.

68/98 s8; 63/16 s2; 50/17 s1

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Registration and information required

        9. (1) The DFNL shall require all producers and processors of milk to register their names and addresses with the DFNL and to provide other information on the production, processing and marketing of milk that it considers necessary.

             (2)  An official list of the names and addresses and quotas of all registered producers shall be kept at the main office of the DFNL and shall be open for inspection by a registered producer during regular business hours and an up-to-date copy of the official list of names and addresses of all registered producers shall be sent to a registered producer and to the APMB upon request.

68/98 s9

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Prohibitions

      10. A person shall not engage in the production or processing of milk in the province unless he or she

             (a)  holds a valid licence issued by the DFNL; and

             (b)  pays the fee prescribed by the DFNL.

68/98 s10

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Prohibitions

      11. A producer shall not sell or offer for sale and a processor shall not buy milk at a price less than the price fixed by the DFNL for that variety and grade of milk.

68/98 s11

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Repeal

      12. The Newfoundland Milk Marketing Scheme , Consolidated Newfoundland Regulation 1191/96, is repealed.

68/98 s12

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Schedule

East Dairy Zone : Avalon Peninsula

Central Dairy Zone: From the Avalon Peninsula to Highway 410 (Baie Verte) and all points accessed by that highway.

West Dairy Zone: West of Highway 410 (Baie Verte) and all points west of that highway not accessed by that highway.

68/98 Sch