N.D. Admin. Code 51-03-04-06

Current through Supplement No. 394, October, 2024

Section 51-03-04-06 - Prices to be paid dairy farmers and others - Midpoint, differential, and multiple component pricing

1. Class I (market areas 3, 4, and 6). Commencing July 1, 2000, the minimum price to be paid by milk processors to dairy farmers and others coming within the scope of this plan f.o.b. the processor's plant for milk which is ultimately utilized in class I (milk products) shall be the hundredweight price as established by the formula below. However, the minimum price to be paid by milk processors to dairy farmers and others coming within the scope of this plan f.o.b. the processor's plant for milk which is ultimately utilized in class I (milk products) shall not be less than $13.76 per hundredweight.

The following formula shall be used when the federal market order no. 30 class I dairy farmer hundredweight price increases or decreases to the next higher or lower federal market order no. 30 class I dairy farmer hundredweight trip point. Minimum North Dakota class I dairy farmer and wholesale and retail prices to be adjusted by using the current federal market order no. 30 class I dairy farmer price on the formula below. Move to the next higher increment and utilize the North Dakota minimum class I dairy farmer price as listed on the formula below. Adjustments, if required, will be monthly.

Market Areas 3, 4, and 6

Federal Market Order No. 30 Class I Dairy Farmer Price	North Dakota Minimum Class I Dairy Farmer Price	Minimum Wholesale Price Per One-Half Gallon 2 Percent Milk
18.59	19.22	1.561
18.38	19.01	1.551
18.17	18.80	1.541
17.96	18.59	1.531
17.75	18.38	1.521
17.54	18.17	1.511
17.33	17.96	1.501
17.12	17.75	1.491
16.91	17.54	1.481
16.70	17.33	1.471
16.49	17.12	1.461
16.28	16.91	1.451
16.07	16.70	1.441
15.86	16.49	1.431
15.65	16.28	1.421
15.44	16.07	1.411
15.23	15.86	1.401
15.02	15.65	1.391
14.81	15.44	1.381
14.60	15.23	1.371
14.39	15.02	1.361
14.18	14.81	1.351
13.97	14.60	1.341
13.76	14.39	1.331
13.55	14.18	1.321
13.34	13.97	1.311
13.13	13.76 Base	1.301

Based on $.21 per hundredweight increments and butterfat differential of $.053.

Differentials above or below the midpoint of 3.5 percent will be those used in federal market order no. 30.

Adjustments in wholesale and retail prices for other sized containers should also increase or decrease, or both, proportionally to the one-half gallon use.

2. Class II. Commencing July 1, 2000, the minimum price to be paid by milk processors to dairy farmers and others, coming within the scope of this stabilization plan f.o.b. the processor's plant after the effective date of this plan for milk which is ultimately utilized in class II, shall be the class II price per hundredweight for federal market order no. 30, adjusted to a 3.5 percent butterfat basis. Butterfat differentials above or below the midpoint of 3.5 percent will be those used in federal market order no. 30.

3. Class III. Commencing July 1, 2000, (in the city of Bottineau) the minimum price to be paid by milk processors to dairy farmers and others coming within the scope of this stabilization plan, f.o.b. the processor's plant for milk which is ultimately utilized in class III, except that used in the manufacture of butter, shall be the same as the selling price for said class III raw milk by grade A processing plants to manufacturing plants less a four percent administrative and transportation allowance to the nearest full cent adjusted to a 3.5 percent butterfat basis. Commencing

July 1, 2000, in market areas 3, 4, and 6 (except the city of Bottineau) the minimum price to be paid by milk processors to dairy farmers and others coming within the scope of this stabilization plan f.o.b. the processor's plant for milk which is ultimately utilized in class III, except that used in the manufacture of butter, shall be priced under a "multiple component pricing" system to include protein, other solids, and somatic cell count. The respective prices for these components, in a given month, and computations thereon will be those used by federal market order no. 30. Two additional components, butterfat and producer price differential, will use as a basis the class III price per hundredweight for federal market order no. 30 less a four percent administrative and transportation allowance to the nearest full cent adjusted to a 3.5 percent butterfat basis. Butterfat differentials above or below the midpoint of 3.5 percent will be those used in federal market order no. 30. Commencing July 1, 2000, the minimum price to be paid by milk processors to dairy farmers and others coming within the scope of this stabilization plan, f.o.b. the processor's plant for milk and cream which is ultimately used in class III for the manufacture of butter, shall be the monthly national agricultural statistical service (NASS) survey butter price less a $.05 per pound administrative and transportation allowance rounded to the nearest cent.

If a processing plant pays to its dairy farmers and others a premium above the class III minimum raw milk price as established herein, such price including the premium, shall become the minimum class III raw milk price for audit purposes for said plant, and said plant shall not be entitled to dilute the class I and class II raw milk prices for payment of said premiums on said class III raw milk.

4. The foregoing class I, II, and III dairy farmer prices shall be automatically adjusted each month, without further amendment to this stabilization plan based upon the prices ordered for federal market order no. 30.

N.D. Admin Code 51-03-04-06

Amended effective July 1, 2000.

General Authority: NDCC 4-18.1-03, 4-18.1-07, 4-18.1-20, 28-32-03.1(3)

Law Implemented: NDCC 4-18.1-07