Milk Pricing Regulations

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Milk Pricing Regulations
made under clauses 14(1)(c) and 15(1)(g) of the

Dairy Industry Act

S.N.S. 2000, c. 24

N.S. Reg. 84/2008 (September 21, 2007, effective February 12, 2008)

as amended to N.S. Reg. 290/2015 (July 27, 2015, effective September 1, 2015)


Effective February 1, 2016, these regulations are amended by N.S. Reg. 355/2015.


1     These regulations may be cited as the Milk Pricing Regulations.


1A  In these regulations,


“certified organic” means certified organic as defined in the Milk Classes andCategories Regulations made under the Dairy Industry Act;


“DFNS Organic Milk Policy” means a policy established by the Boardrespecting the production and sale of organic milk.


“premium payment certified organic milk” means certified organic milk forwhich the Board is required to pay a 20% premium to producers in accordancewith the DFNS Organic Milk Policy.

Definition of “premium payment certified organic milk” added as clause 1A(c): N.S. Reg. 75/2010.

Section 1A added: N.S. Reg. 307/2009; amended (clause letters struck): N.S. Reg. 232/2012.


Classes of milk

2     The classes of milk referred to in these regulations are the classes prescribed in the MilkClasses and Categories Regulations made by the Natural Products Marketing Council.

Milk component prices

3     (1)    Milk processors in the Province must pay, on an F.O.B. plant basis, the prices ofmilk components set out in the following table for each class of milk specified:

Component Prices for Classes of Milk


of Milk


($ per kg)


($ per kg)

Other Solids

($ per kg)


($ per hl)












85% of the BF and SNF values for Class 1(a) or Class 1(b), asapplicable





































85% of the Class 4 (a) component values






Subsection 3(1) replaced: N.S. Reg 15/2015.


            (2)       Milk component prices payable by processors in Nova Scotia for classes 3(d),5(a), 5(b), 5(c), 5(d), 4(a)1 and 4(m) are as established by the Canadian MilkSupply Management Committee or the Canadian Dairy Commission.

Subsection 3(2) amended: N.S. Reg. 212/2013.


            (3)       Processors in Nova Scotia must pay a premium of an additional 20% of theprices in subsection (1) for milk components of premium payment certifiedorganic milk that are processed into dairy products in which all of the milkcomponents are from certified organic milk.

Subsection 3(3) added: N.S. Reg. 307/2009; replaced: N.S. Reg. 75/2010.

Processor information reporting

4          (1)       Each processor purchasing raw milk in Nova Scotia must report milk receipts,milk utilization and bulk haulage costs on a form provided by the Board, andmust pay producers and settle the difference with the Board no later than thedate indicated on the monthly reporting schedule prepared by the Board inconsultation and agreement with processors.


            (2)       Each processor must report to the Board all of its class 1 milk sales, based onsales of products in litres and the products’ milk volume and kilograms ofbutterfat, protein and other solids, using the pure skim formula to determine thekilograms of protein and other solids.


            (3)       The information received under subsections (1) and (2) must be treated in aconfidential manner by Board staff.


            (4)       If Board staff have concerns about processor reporting or payments, staff mayreview the situation with the milk utilization auditing firm appointed by theCouncil.

Calculating payments to producers

5          (1)       The Board must calculate the monthly component prices to be paid to producersno later than the date indicated on the monthly reporting schedule prepared bythe Board in consultation and agreement with processors.


            (2)       In calculating monthly component prices, the Board may take into account theimpact of any pooling agreements to which the Board is a party.


            (3)       The Board must calculate an equalized premium, based on the premiums paidunder subsection 3(3), and allocate this premium equitably among all producersselling premium payment certified organic milk in accordance with the DFNSOrganic Milk Policy.

Subsection 5(3) added: N.S. Reg. 307/2009; replaced: N.S. Reg. 75/2010.

Bulk haulage deduction

6          (1)       The Board must calculate the equalized bulk haulage rate to be charged on allmilk, taking into account the impact of any pooling agreement to which theBoard is a party.


            (2)       The equalized bulk haulage rate must be deducted from all payments toproducers.


            (3)       In addition to the equalized bulk haulage rate, the Board must calculate anequalized bulk haulage rate premium for certified organic milk to be charged onall certified organic milk to reflect the extra costs of transporting certifiedorganic milk separately from other milk.

Subsection 6(3) added: N.S. Reg. 307/2009.


            (4)       The equalized bulk haulage rate premium for certified organic milk must bededucted from all payments to producers for certified organic milk.

Subsection 6(4) added: N.S. Reg. 307/2009.

Paying producers

7          (1)       In the context of payments, “banking day” means a day between Monday andFriday inclusive, and on which at least one half of the banks in the Province areopen for business.


            (2)       The Board must pay or cause to be paid advance and final payments to eachproducer for the milk produced by that producer in a month as follows:


                        (a)       an advance payment must be paid to each producer on the 1st day of thefollowing month or, if that day is not a banking day, on the last bankingday before the first day of the following month, and must be calculatedas 45% of the previous month’s net total payment to that producer;


                        (b)       a final payment must be paid to each producer on the 15th day of thefollowing month or, if that day is not a banking day, on the next day thatis a banking day, and must be calculated as the total payment due to thatproducer for the month, less the advance payment.


            (3)       A payment agent may adjust the amount of an advance payment to a producer toaccount for that producer experiencing a reduction in milk production comparedto the previous payment period.


            (4)       The Board may use the services of a payment agent or, if one or moreprocessors choose not to be payment agents as referred to in subsection 8(4),may be its own payment agent.

Payment agents

8          (1)       Despite anything in these regulations to the contrary, a payment agent must, onbehalf of the Board,


                        (a)       prepare a statement of the milk supplied to that payment agent by theBoard in respect of the producers whose milk was supplied;


                        (b)       mail statements by prepaid first class mail and transmit paymentelectronically, or by cheque by prepaid first class mail, to producers nolater than the dates specified in subsection 7(2).


            (2)       If a payment agent chooses to cease being a payment agent of the Board, it mustfirst provide 6 months’ written notice to the Board.


            (3)       If a payment agent provides the Board with the notice referred to in subsection(2), the matter must be referred to the Advisory Committee for Milk.


            (4)       If a processor ceases to be a payment agent for the Board, the Board mustarrange to have another payment agent pay the producers formerly paid by thatprocessor or, if no other payment agent is willing to pay the producers formerlypaid by the processor who ceased to be a payment agent, the Board mayestablish a payment system for all producers in the Province, in which case theagreements with all payment agents must be terminated.


            (5)       If a producer has a payment agent, all payments for milk supplied by theproducer to the Board must come from the payment agent for that producer.

Producer fees

9          (1)       Each producer must pay the following fees to the Board:


                        (a)       an administration fee of $0.16 per kilogram of butterfat marketed,


                        (b)       a milk promotion fee of $0.3947 per kilogram of butterfat marketed,


                        (c)       a school milk fee in an amount per kilogram of butterfat marketed,calculated using the following formula so that the total of the schoolmilk fees collected from all producers in a month is sufficient to pay theBoard’s costs in the previous month for the School Milk Programadministered by the Department of Agriculture:

SMF = (TL × .15) ÷ TK


in which


                                    SMF    is the school milk fee per kilogram of butterfat marketed,


                                    TL       is the total litres of milk sold under the School Milk Program inthe previous month, and


                                    TK      is the total number of kilograms of butterfat marketed by allproducers in the previous month;


                        (d)       a milk testing fee, calculated using the following formula so that theamount of the milk testing fee is the same for every producer, and thetotal of the milk testing fees collected in a month from all producers issufficient to pay the Board’s costs for milk component and qualitytesting in the previous month:



in which


                                    MTF   is the milk testing fee,


                                    TT       is the total testing costs of the Board in the previous month, and


                                    TP       is the total number of producers.


            (2)       Fees paid by producers under subsection (1) must be deducted by the Boardfrom the producer’s payment or, if payment is made by a payment agent, mustbe deducted by the payment agent and remitted to the Board no later than thedate indicated on the monthly reporting schedule prepared by the board inconsultation and agreement with processors.

Section 9 replaced: N.S. Reg. 290/2015.