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ATCP 100.982(4)(a) (a) The dairy plant operator pays for milk quality, or for the percentage content of milk components in a producer's milk, according to a written payment schedule which the operator announces and makes available on equal terms to all producers from whom the dairy plant operator buys milk.
ATCP 100.982(4)(b) (b) The payment schedule under par. (a) clearly indicates the amounts by which payments will vary based on actual differences in milk quality, or based on actual differences in the percentage content of milk components in a producer's milk.
ATCP 100.982(4)(c) (c) The dairy plant operator measures the differences under par. (b) using accepted scientific methods.
ATCP 100.982(4)(d) (d) The payment schedule under par. (a) does not discriminate between producers having the same milk quality, or the same percentage content of milk components in their milk.
ATCP 100.982(4)(e) (e) Milk quality and milk component payments are not based on milk volume or restricted to certain producers based on volume.
ATCP 100.982(4)(f) (f) The dairy plant operator complies with ss. ATCP 65.84 (3) and 100.30.
ATCP 100.982 History History: Cr. Register, September, 1996, No. 489, eff. 10-1-96; CR 02-113: am. (4) (f) Register April 2003 No. 568, eff. 5-1-03; CR 14-073: am. (3), (4) (f) Register August 2016 No. 728, eff. 9-1-16.
ATCP 100.983 ATCP 100.983Cost-justification defense.
ATCP 100.983(1)(1)General. In any proceeding against a dairy plant operator, in which the operator is alleged to have discriminated between pay classes or individual producers in violation of s. ATCP 100.981, it is a defense for the operator to prove, based on documentary evidence which the operator possessed and relied upon at the time of the alleged discrimination, that the amount of the price discrimination per hundredweight between those pay classes or individual producers did not exceed, in any relevant pay period, the difference in the operator's relevant procurement cost per hundredweight between those pay classes or producers.
ATCP 100.983(2) (2)Volume premiums based on total milk volume. A dairy plant operator shall use the following relevant procurement costs per hundredweight to justify, under sub. (1), discrimination resulting from the payment of volume premiums based on total milk volume:
ATCP 100.983(2)(a) (a) Pay class. The operator's relevant procurement cost per hundredweight for each pay class is the operator's “producer service cost per hundredweight" for that pay class, calculated according to sub. (4) (a).
ATCP 100.983(2)(b) (b) Individual producer. The operator's relevant procurement cost per hundredweight for each individual producer is the operator's “producer service cost per hundredweight" for that individual producer, calculated according to sub. (4) (b).
ATCP 100.983(3) (3)Volume premiums based on volume per pickup. A dairy plant operator shall use the following relevant procurement costs per hundredweight to justify, under sub. (1), discrimination resulting from the payment of volume premiums based on volume per pickup:
ATCP 100.983(3)(a) (a) Pay class. The operator's relevant procurement cost per hundredweight for a pay class is the sum of the operator's “producer service cost per hundredweight" under sub. (4) (a) and “pickup cost per hundredweight" under sub. (5) (a), except that the operator may not include “producer service cost per hundredweight" if the operator also pays volume premiums based on total volume.
ATCP 100.983(3)(b) (b) Individual producer. The operator's relevant procurement cost per hundredweight for an individual producer is the sum of the operator's “producer service cost per hundredweight" under sub. (4) (b) and “pickup cost per hundredweight" under sub. (5) (b), except that the operator may not include “producer service cost per hundredweight" if the operator also pays volume premiums based on milk volume.
ATCP 100.983 Note Note: If a dairy plant operator pays separate volume premiums based on total milk volume and volume per pickup, the operator must separately justify the total volume premiums under sub. (2) and the per-pickup volume premiums under sub. (3).
ATCP 100.983(4) (4)Producer service cost per hundredweight.
ATCP 100.983(4)(a)(a) For a pay class. To calculate a dairy plant operator's “producer service cost per hundredweight" for a pay class in any pay period:
ATCP 100.983(4)(a)1. 1. Determine the operator's base period producer service cost, as defined in s. ATCP 100.98 (2). Divide that cost by the average number of producers who shipped milk to the operator during the base period.
ATCP 100.983(4)(a)2. 2. Multiply the result under subd. 1. by the number of producers in the pay class during the relevant pay period.
ATCP 100.983(4)(a)3. 3. Divide the result under subd. 2. by the hundredweights of milk which the pay class produced during the relevant pay period. This yields the operator's “producer service cost per hundredweight" for that pay class in that pay period.
ATCP 100.983(4)(b) (b) For an individual producer. To calculate a dairy plant operator's “producer service cost per hundredweight" for an individual producer in any pay period:
ATCP 100.983(4)(b)1. 1. Determine the operator's base period producer service cost, as defined in s. ATCP 100.98 (2). Divide that cost by the average number of producers who shipped milk to the operator during the base period.
ATCP 100.983(4)(b)2. 2. Divide the result under subd. 1. by the number of hundredweights of milk which the individual producer shipped to the operator during the relevant pay period. This yields the operator's “producer service cost per hundredweight" for that individual producer in that pay period.
ATCP 100.983(5) (5)Pickup cost per hundredweight.
ATCP 100.983(5)(a) (a) For a pay class. To calculate a dairy plant operator's “pickup cost per hundredweight" for a pay class in any pay period:
ATCP 100.983(5)(a)1. 1. Determine the operator's base period pickup cost, as defined in s. ATCP 100.98 (3). Divide that cost by the total number of farm stops made during the base period.
ATCP 100.983(5)(a)2. 2. Multiply the result under subd. 1. by the number of stops made, during the relevant pay period, at dairy farms operated by producers in the pay class.
ATCP 100.983(5)(a)3. 3. Divide the result under subd. 2. by the hundredweights of milk collected, during the relevant pay period, from producers in the pay class. This yields the operator's “pickup cost per hundredweight" for that pay class in that pay period.
ATCP 100.983(5)(b) (b) For an individual producer. To calculate a dairy plant operator's “pickup cost per hundredweight" for an individual producer in any pay period:
ATCP 100.983(5)(b)1. 1. Determine the operator's base period pickup cost, as defined in s. ATCP 100.98 (3). Divide that cost by the total number of farm stops made during the base period.
ATCP 100.983(5)(b)2. 2. Multiply the result under subd. 1. by the number of stops made at the producer's dairy farm during the relevant pay period.
ATCP 100.983(5)(b)3. 3. Divide the result under subd. 2. by the hundredweights of milk collected from the producer's dairy farm during the relevant pay period. This yields the operator's “pickup cost per hundredweight" for that individual producer in that pay period.
ATCP 100.983(6) (6)Cost accounting.
ATCP 100.983(6)(a) (a) At the request of a dairy plant operator, the department may approve alternative methods for calculating relevant procurement costs per hundredweight under this section. The department shall give its approval, if any, in writing.
ATCP 100.983(6)(b) (b) Costs under this section shall be determined on the basis of generally accepted accounting principles using the accrual method of accounting.
ATCP 100.983(7) (7)Value of non-price consideration per hundredweight. If a dairy plant operator seeks to cost-justify a discrimination in non-price consideration under s. ATCP 100.981 (2), the operator shall calculate the value of that non-price consideration per hundredweight by dividing the value of the non-price consideration provided in each pay period by the hundredweights of milk which the recipient of that non-price consideration produced during that pay period.
ATCP 100.983 History History: Cr. Register, September, 1996, No. 489, eff. 10-1-96.
ATCP 100.984 ATCP 100.984Meeting competition defense.
ATCP 100.984(1)(1)General. In any proceeding against a dairy plant operator, in which the operator is alleged to have discriminated between producers or pay classes in violation of s. ATCP 100.981, it is a defense for the operator to prove that the operator discriminated between those producers or pay classes in good faith in order to meet competition.
ATCP 100.984(2) (2)Proof required. No dairy plant operator may claim the meeting competition defense under sub. (1) unless the operator proves all of the following, based on documentary evidence which the operator possessed and relied upon when the operator engaged in the alleged discrimination:
ATCP 100.984(2)(a) (a) The operator offered the discriminatory milk price or non-price consideration in response to a competitor's prior offer to producers in the operator's procurement area.
ATCP 100.984(2)(b) (b) The competitor's prior offer under par. (a) was still in effect when the operator offered the discriminatory milk price or non-price consideration.
ATCP 100.984(2)(c) (c) The operator's discriminatory milk price or non-price consideration was similar in kind to the competitor's prior offer under par. (a), and did not exceed the competitor's offer.
ATCP 100.984(2)(d) (d) The operator offered the discriminatory milk price or non-price consideration only in that part of the operator's procurement area which overlapped the competitor's procurement area, or only to those producers who received the competitor's prior offer under par. (a).
ATCP 100.984(3) (3)Limitations. No dairy plant operator may claim the meeting competition defense under sub. (1) for either of the following:
ATCP 100.984(3)(a) (a) A milk volume premium which exceeds, for producers shipping equivalent volumes of milk, the milk volume premium offered or paid by the competitor whose competition the operator is purporting to meet.
ATCP 100.984(3)(b) (b) Discrimination which occurred more than 30 days after the last day on which the competitor's offer was in effect.
ATCP 100.984 History History: Cr. Register, September, 1996, No. 489, eff. 11-1-96.
ATCP 100.985 ATCP 100.985Demanding justification.
ATCP 100.985(1)(1)The department may, by written notice, require a dairy plant operator to file with the department the documentation which that operator relies upon to justify, under s. ATCP 100.982, 100.983 or 100.984, a payment or offer which appears to discriminate between producers or pay classes in violation of s. ATCP 100.981.
ATCP 100.985(2) (2)A dairy plant operator shall file documentation in response to the department's demand under sub. (1) within 14 days after the operator receives that demand, or by a later date which the department specifies in its demand. The department may extend the filing deadline for good cause shown.
ATCP 100.985 Note Note: See ss. 93.15 and 93.21(4), Stats.
ATCP 100.985 History History: Cr. Register, September, 1996, No. 489, eff. 10-1-96.
ATCP 100.986 ATCP 100.986Failure to justify discrimination; notice.
ATCP 100.986(1)(1)Department notice to alleged violator. If the department finds that a dairy plant operator's documentation under s. ATCP 100.985 fails to justify a discrimination in milk price or non-price consideration, the department may give the dairy plant operator written notice of that finding.
ATCP 100.986(2) (2)Public inspection. A notice under sub. (1) is open to public inspection under subch. II of ch. 19, Stats.
ATCP 100.986(3) (3)Not a prerequisite for enforcement. A notice under sub. (1) is not a prerequisite for an action to enforce this chapter or s. 100.22, Stats., nor is it a prerequisite for a private action under s. 100.20 (5), Stats.
ATCP 100.986(4) (4)Notice does not prove violation. A notice under sub. (1) does not prove that a dairy plant operator violated this chapter or s. 100.22, Stats.
ATCP 100.986 History History: Cr. Register, September, 1996, No. 489, eff. 10-1-96.
ATCP 100.987 ATCP 100.987Injury to producer. In a proceeding against a dairy plant operator under s. 93.06 (7) or (8), 100.20 (5) or (6), 100.22 (4) or (5), or 100.26 (3) or (6), Stats., proof that a complaining producer received a lower milk price or non-price consideration than another producer shipping milk to the same dairy plant during the same pay period is presumptive evidence of injury to that producer.
ATCP 100.987 History History: Cr. Register, September, 1996, No. 489, eff. 10-1-96.
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Published under s. 35.93, Stats. Updated on the first day of each month. Entire code is always current. The Register date on each page is the date the chapter was last published.