Oregon Statutes - Chapter 583 - Milk Marketing, Production and Distribution - Section 583.507 - Establishment of basic price of Class 3 milk; rules.

(1) The basic price for the sale of Class 3 milk testing 3.5 percent, by producers to handlers and the sale thereof between handlers shall be established by formula in each market pool in each market area. The formula, sometimes referred to as the “Chicago butter-powder formula,” is computed as follows:

(a) Multiply the Chicago butter price by 4.2.

(b) Multiply by 8.2 the weighted average of carlot prices per pound of nonfat dry milk solids, spray process, for human consumption, f.o.b. manufacturing plants in the Chicago area, as published for the period from the 26th of the immediately preceding month through the 25th day of the current month by the United States Department of Agriculture. From the sum of the results arrived at under paragraphs (a) and (b) of this subsection, subtract a “make charge” and round to the nearest cent.

(2) “Chicago butter price” means the simple average of the daily wholesale selling prices, using the midpoint of any price range as one price, of Grade AA (93-score) bulk creamery butter per pound at Chicago as reported for the month by the United States Department of Agriculture. If no price is reported for Grade AA (93-score) butter, the highest of the prices reported for Grade A (92-score) butter for that day shall be used in lieu of the price for Grade AA (93-score) butter.

(3) “Make charge” shall be established by the State Department of Agriculture, after public hearing, under ORS chapter 183. It is a figure or amount representing the cost of manufacturing, processing, handling and moving the product to market. The department shall receive evidence and testimony from all segments of the industry, take into consideration any other facts, information, figures or data and the “make charge” use by other federal and state milk laws, rules or programs and arrive at such charge or amount.

(4) If the average butterfat content of Class 3 milk, computed pursuant to subsection (1) of this section differs from 3.5 percent, there shall be added to, or subtracted from, the basic price for each one-tenth of one percent that the average butterfat content is above or below 3.5 percent, a differential. Rules relating to the determination of such differential shall be established by the department after public hearing pursuant to the provisions of ORS chapter 183.

(5) It must be recognized that the provisions of this section are standards and guideposts and that the details must by necessity be more completely set forth as otherwise authorized in this chapter to establish and maintain the formula to make it fair, reasonable, practical and workable for the benefit of the entire dairy industry of this state. [1967 c.440 §17]

Section:  Previous  583.470  583.475  583.480  583.485  583.490  583.500  583.505  583.507  583.510  583.512  583.515  583.516  583.517  583.518  583.520  Next

Last modified: August 7, 2008