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Proposed Class III, IV Changes Unopposed at USDA Hearing The shortest Federal Milk Marketing Order hearing in recent memory was held in Alexandria, Va., last Tuesday, October 21. The hearing began at about its scheduled start time of 8:30 a.m. and was over just after 11:00 a.m. The U.S. Department of Agriculture (USDA) called the hearing to accept testimony regarding some minor changes to the classification of some dairy products and end-of-month inventory of bulk fluid milk and cream.The first proposal was based on a petition to USDA from O-AT-KA Milk Products Cooperative, Inc. to reclassify the following products, currently in Class III, to Class IV: plastic cream, anhydrous milkfat, butteroil, and evaporated milk in consumer-type packages. The second proposal, submitted jointly by Diehl, Inc. and Milnot Holding Corporation, was identical to the first except that it also called for changing the classification of sweetened condensed milk in consumer-type packages to become a Class IV product. The third proposal, made by New York State Dairy Foods, Inc., called for changing the classification of the following items from the current Class IV use, to the lowest-priced class for the month: inventory held at the end of the month of fluid milk products and fluid cream products in bulk form; and any milk that is dumped, used for animal feed, destroyed or lost by a handler in a vehicular accident, flood, fire or similar occurrence beyond the handler's control. Other than USDA's witness, who presented statistical data only, all the witnesses supported the first and second proposals. In addition, the witness from New York State Dairy Foods, Inc. supported the third proposal. IDFA's Legislative and Economic Policy Committees had reviewed the proposals and expressed no opposition. The lack of controversy regarding these proposals was illustrated when all parties at the hearing agreed to an October 29 deadline — only 8 days after the hearing — for filing related briefs. This decision was approved despite the fact that the hearing's transcript is not likely to be made available (on the website of USDA's Agricultural Marketing Service) until that date or later. The next step is for USDA to review all the testimony and exhibits presented at the hearing, as well as any briefs filed by October 29. It should be noted that most witnesses urged "emergency action" on the proposals they supported, which would allow USDA to skip the step of issuing a recommended decision and accepting comments on that recommended decision before moving to a final decision. After USDA publishes a final decision, a referendum of affected producers in each Federal Order will be held. A two-thirds majority of producers must vote in support of the changes announced by USDA; in any Federal Order in which a two-thirds majority of producers does not vote yes, USDA is required to terminate the new rules in that order only.
Posted October 27, 2003
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