Oregon Statutes - Chapter 583 - Milk Marketing, Production and Distribution - Section 583.515 - Establishment of quota for producers in market areas; adjustments and transfers.

(1) Under a market pool and as used in this section, “quota” means a producer’s portion of the total sales of Class 1 milk in a market area plus 15 percent.

(2) The State Department of Agriculture shall provide by order, under procedures set forth in ORS 583.001, 583.004, 583.021, 583.028 and 583.410 to 583.565, for the transfer of quota between individual producers as necessary to carry out the purpose and intent of ORS 583.001, 583.004, 583.021, 583.028 and 583.410 to 583.565.

(3) After June 4, 1963, to establish each producer’s initial quota in the market area, the department shall give equal weight to production and to Class 1 sales by determining the simple average of the production of the producer and Class 1 sales in the market area during January, February, March and April 1963. The percentage that the monthly production-sales average of the producer is of the monthly production-sales average of all producers supplying the market area, times the total Class 1 sales in the area, times 115 percent, divided by 30, will be the daily quota of the producer in the area. Thereafter, annually on or before March 1 of each year, each producer’s quota will be adjusted in accordance with the daily average production of the producer during the four low months of the previous calendar year adjusted to the average of the four high months of Class 1 sales in the market area, plus 15 percent; except the department may establish by administrative order, if there are months of low production because producers have adjusted production to meet conditions existing in a particular market, or because of acts of God or other legitimate reasons which cannot be attributed to poor management, such months may be excluded in determining the low four months.

(4) If, during any three consecutive months, in the market area surplus in quota is less than 10 percent or more than 20 percent, the department shall adjust quotas allocated under subsection (3) of this section to provide sufficient quota milk to meet Class 1 requirements.

(5)(a) A new producer or a producer with allocated quota can acquire quota or increase the quota of the producer by purchasing a herd with assigned quota providing the department, or the producer group which has reallocated assigned quota, is advised of the transfer.

(b) A new producer who does not acquire quota as provided by paragraph (a) of this subsection, may, after qualifying for Grade A production and after selling such production as manufacturing milk for a minimum of 180 days, have assigned as the quota of the producer in the market area the same proportion, less 30 percent, that the monthly average production of the producer for the 180-day period bears to the Class 1 utilization of all production in the market area. Such quota with penalty must be maintained for at least six months prior to adjustments, as provided by subsection (4) of this section. [1963 c.442 §21; 1977 c.307 §13]

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Last modified: August 7, 2008