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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.

Citation

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

Interpretation

1A  In these regulations,

 

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

 

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

 

“premium payment certified organic milk” means certified organic milk for which the Board is required to pay a 20% premium to producers in accordance with 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 Milk Classes 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 of milk components set out in the following table for each class of milk specified:

Component Prices for Classes of Milk
Class of Milk	Butterfat ($ per kg)	Protein ($ per kg)	Other Solids ($ per kg)	Solids-Non-Fat ($ per hl)
1(a)	7.0125			74.3900
1(b)	7.0125			60.9000
1(c)	85% of the BF and SNF values for Class 1(a) or Class 1(b), as applicable
2(a)	7.9104	5.8693	5.8693
2(b)	7.9104	5.8693	5.8693
3(a)	7.9104	13.6931	0.8602
3(b)	7.9104	13.2389	0.8602
3(c)	7.9104	13.6931	0.8602
4(a)	7.9104	5.3129	5.3129
4(b)	7.9104	5.4215	5.4215
4(c)	85% of the Class 4 (a) component values
4(d)	7.9104	5.3129	5.3129

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 Milk Supply 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 the prices in subsection (1) for milk components of premium payment certified organic milk that are processed into dairy products in which all of the milk components 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, and must pay producers and settle the difference with the Board no later than the date indicated on the monthly reporting schedule prepared by the Board in consultation and agreement with processors.

 

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

 

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

 

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

Calculating payments to producers

5          (1)       The Board must calculate the monthly component prices to be paid to producers no later than the date indicated on the monthly reporting schedule prepared by the Board in consultation and agreement with processors.

 

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

 

            (3)       The Board must calculate an equalized premium, based on the premiums paid under subsection 3(3), and allocate this premium equitably among all producers selling premium payment certified organic milk in accordance with the DFNS Organic 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 all milk, taking into account the impact of any pooling agreement to which the Board is a party.

 

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

 

            (3)       In addition to the equalized bulk haulage rate, the Board must calculate an equalized bulk haulage rate premium for certified organic milk to be charged on all certified organic milk to reflect the extra costs of transporting certified organic 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 be deducted 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 and Friday inclusive, and on which at least one half of the banks in the Province are open for business.

 

            (2)       The Board must pay or cause to be paid advance and final payments to each producer 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 the following month or, if that day is not a banking day, on the last banking day before the first day of the following month, and must be calculated as 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 the following month or, if that day is not a banking day, on the next day that is a banking day, and must be calculated as the total payment due to that producer for the month, less the advance payment.

 

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

 

            (4)       The Board may use the services of a payment agent or, if one or more processors 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, on behalf of the Board,

 

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

 

                        (b)       mail statements by prepaid first class mail and transmit payment electronically, or by cheque by prepaid first class mail, to producers no later than the dates specified in subsection 7(2).

 

            (2)       If a payment agent chooses to cease being a payment agent of the Board, it must first 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 must arrange to have another payment agent pay the producers formerly paid by that processor or, if no other payment agent is willing to pay the producers formerly paid by the processor who ceased to be a payment agent, the Board may establish a payment system for all producers in the Province, in which case the agreements with all payment agents must be terminated.

 

            (5)       If a producer has a payment agent, all payments for milk supplied by the producer 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 school milk fees collected from all producers in a month is sufficient to pay the Board’s costs in the previous month for the School Milk Program administered 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 in the previous month, and

 

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

 

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

MTF = TT ÷ TP

 

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 Board from the producer’s payment or, if payment is made by a payment agent, must be deducted by the payment agent and remitted to the Board no later than the date indicated on the monthly reporting schedule prepared by the board in consultation and agreement with processors.

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

 

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