CONSOLIDATED NEWFOUNDLAND REGULATION 1187/96

Short title

1. This Order may be cited as the Consolidated Newfoundland Milk Marketing Board Orders.

Interpretation

2. (1) In this Order

(a) "milk" includes all classes and grades of cows fluid milk, whether whole, reduced or flavoured and includes buttermilk, cream and all classes and grades of reconstituted milk;

(b) "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 the product and may include distribution; and

(c) "school milk" means milk which is marketed for consumption as school milk in the province under the school milk program administered by the Newfoundland and Labrador School Milk Foundation Inc.

(2) Unless otherwise specified, the words used in this Order shall have the same meaning as those used in the Fluid Milk Quota Allocation Order.

66/92 s2; 67/91 s2; 16/96 s2

Quota increase

3. All registered producers shall receive a 2% increase in his or her fluid milk quota as calculated by the board for the fiscal quarter‑years of the board.

84/92 s3

Transportation of excess milk

4. (1) In the event that a registered producer exceeds in a month 100% of his or her fluid milk quota calculated by the board for that month and as a result of the excess monthly production by that registered producer the board determines, following consultation with registered processors affected,

(a) that fluid milk must be transported from the dairy region in which the registered producer's dairy farm unit is located to another dairy region for processing or sale; or

(b) that fluid milk must be transported to the processing plant of a registered processor other than the registered processor to which the registered producer is assigned by the board for processing or sale.

(2) The board may impose on the registered producer a transportation charge for transportation required under subsection (1) equal to the actual costs to the board for the transportation of the fluid milk

(a) from one processing plant to another processing plant; and

(b) from one dairy region to another dairy region.

66/92 s3

Excess production by multiple producers

5. (1) In the event that more than one registered producer exceeds in a month his or her fluid milk quota as calculated by the board for that month and, as a result of the excess monthly production by those registered producers, the board determines, following consultation with registered processors affected,

(a) that fluid milk must be transported from the dairy region in which the registered producers' dairy farm units are located to another dairy region for processing or sale; or

(b) that fluid milk must be transported to a processing plant other than the processing plant to which the registered producers are assigned by the board for processing or sale,

the board may impose on the registered producers by notice in writing a transportation charge.

(2) The transportation charge referred to in subsection (1) shall be equal to the actual costs to the board for the transportation of the fluid milk

(a) from one processing plant to another processing plant; and

(b) from one dairy region to another dairy region,

to be divided and allocated among those registered producers on a proportional basis in accordance with the quantities of their individual excess production during that month that may be determined by the board.

66/92 s4

Transportation of excess milk

6. (1) In the event that fluid milk is produced by registered producers in one or more dairy regions in a quantity

(a) that is in excess of the consumer demand for the purchase and consumption of the same in that dairy region; or

(b) in excess of the capability of registered processors to process the fluid milk in processing plants situate within the dairy region where the fluid milk was produced,

and as a result of that, the board determines, following consultation with registered processors affected, that fluid milk must be transported from the dairy region where it was produced to another dairy region for processing or sale, then the board may determine and impose transportation charges respecting the cost to the board for the transportation of the fluid milk from one dairy region to another dairy region on the registered producers who have dairy farm units situate in the dairy region where the fluid milk was produced in that excess quantity.

(2) The transportation charges shall be calculated and determined by the board by dividing and allocating the costs among those registered producers on a proportional basis in accordance with the quantities of their individual total production of fluid milk during the month in which the regional excess production and transportation of fluid milk from one dairy region to another occurred, that may be determined by the board at the time and in consultation with registered processors using sound business judgment.

66/92 s5

Charge payment following notice

7. Registered producers shall pay to the board transportation charges imposed on them, in the manner provided in this Order, following the imposition of the transportation charge and the delivery by the board to the penalized registered producer of a notice in writing.

66/92 s6

Set‑off

8. The board may deduct the amounts of transportation charges by way of set‑off against amounts otherwise payable by the board to registered producers upon whom the transportation charges have been imposed and by whom the transportation charges are payable.

66/92 s7

Deduction by registered processor

9. (1) Registered processors shall, immediately on receipt of a demand by notice in writing from the board, deduct the amounts of transportation charges from amounts otherwise payable, or after receipt of the demand becoming payable, by the licensed processor to a registered producer upon whom a transportation charge has been imposed, and remit the same to the board.

(2) Registered processors shall remit to the board all amounts deducted for transportation charges from registered producers pursuant to demands issued under the authority of this Order immediately upon the making of the deductions.

66/92 s8

Authority for deduction

10. The receipt by a registered processor of a demand from the board under section 9 shall be a sufficient and continuing authority to the registered processor to make a deduction from amounts otherwise payable by a registered processor to a registered producer and to remit the amount to the board as set out in section 8.

66/92 s9

Service charge

11. (1) A service charge of $1 per hectolitre is imposed on all milk marketed under the Newfoundland Milk Marketing Scheme and a further service charge of $1.10 per hectolitre is imposed on all the milk originally produced on dairy farms situate in the province.

(2) All service charges imposed in this section shall be payable in the first instance, in respect of milk originally produced on dairy farms situate in the province, on the producer of it, and in respect of milk originally produced on dairy farms situate other than in the province on the owner of it at the time of its entry into the province.

(3) All service charges shall be collected from producers and owners liable to pay in the first instance by processors who are expressly appointed as agents of the Newfoundland Milk Marketing Board for the purposes, and the service charge shall be paid in turn by the processors to the Newfoundland Milk Marketing Board on behalf of the producers and owners at least once per calendar month and not later than the 15th day of the month following for all deliveries of milk made to processing plants in the province and sales of milk to processors in the preceding month.

67/91 s3

School milk

12. (1) All milk marketed in the province under the school milk program administered by the Newfoundland and Labrador School Milk Foundation Inc. shall be cow's fluid milk processed in the form of white fluid milk or cow's fluid milk processed in the form of chocolate flavoured milk.

(2) The marketing of another class or type of milk as school milk under the program administered by the Newfoundland and Labrador School Milk Foundation Inc. is prohibited.

16/96 s3

Minimum price for milk

13. The minimum price at which fluid milk, 3.6 kilograms butterfat content, shall be bought, sold or offered for sale F.O.B. registered processors' premises in the province shall be $80.98 per hectolitre and for every one‑tenth kilogram in excess of that butterfat content, the minimum price of milk shall be increased by a premium of $0.22 per one‑tenth kilogram butterfat content per hectolitre.

16/96 s4

Repeal

14. The Milk Marketing Board Order No. 21 (Service Charge), Newfoundland Regulation 67/91, the Newfoundland Milk Marketing Board Transportation Order, Newfoundland Regulation 66/92, the Newfoundland Milk Marketing Board Order No. 26 (Quotas), Newfoundland Regulation 84/92, and the Newfoundland Milk Marketing Board Order No. 32, Newfoundland Regulation 16/96, are repealed.