[Federal Register Volume 59, Number 6 (Monday, January 10, 1994)]
[Proposed Rules]
[Pages 1307-1308]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-427]


[[Page Unknown]]

[Federal Register: January 10, 1994]


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DEPARTMENT OF AGRICULTURE
7 CFR Part 1094

[DA-94-06]

 

Milk in the New Orleans-Mississippi Marketing Area; Proposed 
Suspension of a Provision of the Order

AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed suspension of rule.

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SUMMARY: This document invites written comments on a proposal to 
suspend, for 23 months, the 45 percent delivery requirement for a plant 
operated by a cooperative association that is located within the New 
Orleans-Mississippi marketing area. The suspension was requested by 
Gulf Dairy Association, Inc., which operates a manufacturing plant at 
Kentwood, Louisiana. The association states that without the 
suspension, it will be forced to make inefficient qualifying shipments 
of milk merely to keep the milk of its producers qualified for pooling 
under the order.

DATES: Comments are due no later than January 20, 1994.

ADDRESSES: Comments (two copies) should be sent to USDA/AMS/Dairy 
Division, Order Formulation Branch, room 2968, South Building, P.O. Box 
96456, Washington, DC 20090-6456.

FOR FURTHER INFORMATION CONTACT: Nicholas Memoli, Marketing Specialist, 
USDA/AMS/Dairy Division, Order Formulation Branch, room 2968, South 
Building, P.O. Box 96456, Washington, DC 20090-6456, (202) 690-1932.

SUPPLEMENTARY INFORMATION: The Regulatory Flexibility Act (5 U.S.C. 
601-612) requires the Agency to examine the impact of a proposed rule 
on small entities. Pursuant to 5 U.S.C. 605(b), the Administrator of 
the Agricultural Marketing Service has certified that this action would 
not have a significant economic impact on a substantial number of small 
entities. Such action would lessen the regulatory impact of the order 
on certain milk handlers and would tend to ensure that dairy farmers 
would continue to have their milk priced under the order and thereby 
receive the benefits that accrue from such pricing.
    The Department is issuing this proposed action in conformance with 
Executive Order 12866.
    This proposed action has been reviewed under Executive Order 12778, 
Civil Justice Reform. This action is not intended to have a retroactive 
effect. If adopted, this proposed action will not preempt any state or 
local laws, regulations, or policies, unless they present an 
irreconcilable conflict with the rule.
    The Agricultural Marketing Agreement Act of 1937, as amended (7 
U.S.C. 601-674), provides that administrative proceedings must be 
exhausted before parties may file suit in court. Under section 
8c(15)(A) of the Act, any handler subject to an order may file with the 
Secretary a petition stating that the order, any provisions of the 
order, or any obligation imposed in connection with the order is not in 
accordance with law and request a modification of an order or to be 
exempted from the order. A handler is afforded the opportunity for a 
hearing on the petition. After a hearing the Secretary would rule on 
the petition. The Act provides that the district court of the United 
States in any district in which the handler is an inhabitant, or has 
its principal place of business, has jurisdiction in equity to review 
the Secretary's ruling on the petition, provided a bill in equity is 
filed not later than 20 days after the date of the entry of the ruling.
    Notice is hereby given that, pursuant to the provisions of the 
Agricultural Marketing Agreement Act, suspension of the following 
provision of the order regulating the handling of milk in the New 
Orleans-Mississippi marketing area is being considered for the period 
from February 1, 1994 through December 31, 1995:
    In Sec. 1094.7(c), the words ``45 percent or more of the''.
    All persons wishing to submit written data, views or arguments 
about the proposed suspension should send two copies of their views to 
USDA/AMS/Dairy Division, Order Formulation Branch, room 2968, South 
Building, P.O. Box 96456, Washington, DC 20090-6456 by the 10th day 
after publication of this notice in the Federal Register. The filing 
period is limited to ten days because a longer period would not provide 
the time needed to complete the required procedures before the 
requested suspension is to be effective.
    All written submissions made pursuant to this notice will be made 
available for public inspection in the Dairy Division during regular 
business hours (7 CFR 1.27 (b)).

Statement of Consideration

    The proposed action would suspend for the months of February 1994 
through December 1995 the 45 percent delivery requirement for a 
cooperative association plant that is located in the New Orleans-
Mississippi marketing area.
    Gulf Dairy Association, Inc., which operates a manufacturing plant 
at Kentwood, Louisiana, that is regulated under Order 94 submitted the 
suspension request. The cooperative stated that because of the present 
45 percent delivery requirement applicable to a cooperative association 
that wishes to qualify a manufacturing plant for pooling, it has had to 
shift some of its producers to neighboring Greater Louisiana (Order 96) 
pool plants to keep its Kentwood plant qualified as a pool plant under 
Order 94. It indicated that Order 96 requires that six days' production 
of a producer must be received at pool plants each month in order to 
qualify the milk for pooling by diversion to a nonpool plant. 
Accordingly, it has had to move the milk of selected producers to Order 
96 pool plants six days per month. Since this milk is not actually 
needed by these pool plants, the cooperative has then had to back-haul 
the milk to its Kentwood manufacturing plant for processing. The 
problem is now particularly acute, according to the cooperative, 
because two Order 94 pool plants have notified Gulf Dairy Association 
that they will no longer purchase milk from them after February 1, 
1994.
    Gulf Dairy Association noted that the problem it is experiencing 
will be resolved through the proposed merger of milk orders that is now 
under consideration by the Department. It urged that the proposed 
suspension be effective pending the completion of that proceeding.

List of Subjects in 7 CFR Part 1094

    Milk marketing orders.

    Authority: Secs. 1-19, 48 Stat. 31, as amended; 7 U.S.C. 601-
674.

    Dated: January 3, 1994.
Lon Hatamiya,
Administrator.
[FR Doc. 94-427 Filed 1-7-94; 8:45 am]
BILLING CODE 3410-02-P