2005 Vermont Code - § 2925. — Minimum producer price regulation

§ 2925. Minimum producer price regulation

(a) The commission may make, rescind or amend a rule regulating minimum producer prices if the commission finds that the federal milk marketing order minimum price is adequate or inadequate as the case may be to ensure that the price paid to dairy producers will cover the costs of milk production and provide a reasonable economic return to dairy producers sufficient to ensure a stable milk production and distribution system in Vermont. The commission may amend or rescind a rule without a public hearing when necessary to conform the price with an increase in the federal market order price.

(b) Guidelines for setting prices. In setting equitable minimum prices, the commission may investigate and ascertain what are reasonable costs and charges for producing, hauling, handling, processing and any other services performed in respect to fluid dairy products. The board shall take into consideration the balance between production and consumption of milk, the costs of production and distribution, the purchasing power of the public and the price necessary to yield a reasonable return to the producer and to the distributors.

(1) Minimum producer prices may be based on the producer prices prevailing in federal market order I and reflect as accurately as possible the costs of production in Vermont. The prices should also reflect, within constitutional limitations, the competitive position of Vermont producers within the market order. Minimum producer prices should also reflect the actual rate of return received by distributors or handlers, whichever is greater, as determined by the commission.

(2) Minimum retail prices should reflect the lowest price at which milk purchased from Vermont producers can be received, processed, packaged and distributed by handlers and distributors at a just and reasonable return.

(3) In establishing minimum producer and retail prices, the commission shall make applicable findings regarding the competitive position of Vermont producers and their costs, handler and distributor costs and reasonable rates of return, and actual handler and distributor rates of return.

(c) Prices so established need not be uniform in all markets and may be changed from time to time after such notice and public hearing as deemed by the commission to be in the public interest.

(d) Nothing herein shall be construed to prohibit a producers cooperative from blending the proceeds from the sale of its milk in all markets and all classifications, and distributing such to its members in accordance with the contract with its members, or from making deductions from sums due members of such sums as may be authorized by the membership to be so deducted.

(e) Purchases by or sales to authorized officials of any town or city charity or public welfare department or by charitable organizations approved by the city or town officials for charitable uses, and school lunch milk, shall be exempt from the price-fixing provisions of this chapter.

(f) This chapter shall apply to milk produced outside the state subject to regulation by the state in the exercise of its police powers. Any sale or purchase by distributors or handlers of such milk within this state at a price less than a regulated minimum price shall be unlawful.

(g) This section shall not apply to a producer-handler with an annual production of one million pounds of milk or less. (1965, No. 175, § 43; amended 1991, No. 17 § 5, eff. April 4, 1991; 1991, No. 17, § 5, eff. April 4, 1991; 1991, No. 185 (Adj. Sess.).)