[Federal Register Volume 61, Number 78 (Monday, April 22, 1996)]
[Rules and Regulations]
[Pages 17561-17562]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-9826]



-----------------------------------------------------------------------


DEPARTMENT OF AGRICULTURE
7 CFR Part 1131

[DA-96-03]


Milk in the Central Arizona Marketing Area; Suspension of Certain 
Provisions of the Order

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Suspension of rule.

-----------------------------------------------------------------------

SUMMARY: This document continues to suspend certain provisions of the 
Central Arizona Federal milk marketing order during April 1, 1996, 
through March 31, 1997. The continued suspension eliminates the 
requirement that a cooperative association ship at least 50 percent of 
its receipts to other handler pool plants to maintain pool status of a 
manufacturing plant operated by the cooperative. United Dairymen of 
Arizona, a cooperative association that represents nearly all of the 
producers who supply milk to the market, requested the suspension. The 
suspension is necessary to prevent uneconomical and inefficient 
movements of milk.

EFFECTIVE DATE: April 1, 1996, through March 31, 1997.

FOR FURTHER INFORMATION CONTACT: Clifford M. Carman, Marketing 
Specialist, USDA/AMS/Dairy Division, Order Formulation Branch, Room 
2971, South Building, PO Box 96456, Washington, DC 20090-6456, (202) 
720-9368.

SUPPLEMENTARY INFORMATION: Prior document in this proceeding:
    Notice of Proposed Suspension: Issued March 7, 1996; published 
March 13, 1996 (61 FR 10288).
    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 rule will not have a 
significant economic impact on a substantial number of small entities. 
This rule lessens the regulatory impact of the order on certain milk 
handlers and tends to ensure that dairy farmers will continue to have 
their milk priced under the order and thereby receive the benefits that 
accrue from such pricing.
    The Department is issuing this final rule in conformance with 
Executive Order 12866.
    This final rule has been reviewed under Executive Order 12778, 
Civil Justice Reform. This rule is not intended to have a retroactive 
effect. This rule will not preempt any state or local laws, 
regulations, or policies, unless they present an irreconcilable 
conflict with this 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 
608c(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 the law and requesting 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.
    This order of suspension is issued pursuant to the provisions of 
the Agricultural Marketing Agreement Act and of the order regulating 
the handling of milk in the Central Arizona marketing area.
    Notice of proposed rulemaking was published in the Federal Register 
on March 13, 1995 (61 FR 10288) concerning a proposed suspension of 
certain provisions of the order. Interested persons were afforded 
opportunity to file written data, views and arguments thereon. No 
comments were received.
    After consideration of all relevant material, including the 
proposal in the notice and other available information, it is hereby 
found and determined that for the months of April 1, 1996, through 
March 31, 1997, the following provisions of the order do not tend to 
effectuate the declared policy of the Act:
    In Sec. 1131.7(c), the words ``50 percent or more of'', 
``(including the skim milk and butterfat in fluid milk products 
transferred from its own plant pursuant to this paragraph that is not 
in excess of the skim milk and butterfat contained in member producer 
milk actually received at such plant)'' and ``or the previous 12-month 
period ending with the current month.''

Statement of Consideration

    This rule continues to suspend certain provisions of the Central 
Arizona order for the months of April 1996 through March 1997. The 
suspension removes the requirement that a cooperative association that 
operates a manufacturing plant in the marketing area must ship at least 
50 percent of its milk supply during the current month or the previous 
12-month period ending with the current month to other handlers' pool 
plants to maintain the pool status of its manufacturing plant.
    The order permits a cooperative association's manufacturing plant, 
located in the marketing area, to be a pool plant if at least 50 
percent of the producer milk of members of the cooperative association 
is physically received at pool plants of other handlers during the 
current month or the previous 12-month period ending with the current 
month.
    Continuation of the current suspension of this shipping requirement 
was requested by United Dairymen of Arizona (UDA), a cooperative 
association that represents nearly all of the dairy farmers who supply 
the Central Arizona market. UDA states that the continued pool status 
of their manufacturing plant is threatened if the suspension is not 
continued. UDA contends that the same marketing conditions that 
warranted the suspension last year still exist. UDA maintains that 
members who increased their milk production to meet the projected 
demands of fluid handlers for distribution into Mexico continue to 
suffer the adverse impact of the collapse of the Mexican peso.
    During the past year, there has been an increase in producer milk 
while handler requirements for bulk milk deliveries has decreased. This 
decrease is primarily a result of reduced Class I sales by Central 
Arizona handlers in Mexico because of the continued devaluation of the 
Mexican peso. Pool status of UDA's manufacturing plant will not be 
maintained absent continuation of the suspension. Thus, costly and 
inefficient movements of milk would have to be made to maintain pool 
status of producers who have historically supplied the market and to 
prevent disorderly marketing in the Central Arizona marketing area.
    UDA again requested that the suspension be granted for an 
indefinite period beginning in April 1996. After reviewing the 
marketing conditions of the Central Arizona marketing area and their 
relationship with the uncertain value of the Mexican peso, this

[[Page 17562]]

suspension will be for a one-year period.
    Accordingly, it is appropriate to suspend the aforesaid provisions 
beginning April 1, 1996, through March 31, 1997.
    It is hereby found and determined that thirty days' notice of the 
effective date hereof is impractical, unnecessary and contrary to the 
public interest in that:
    (a) The suspension is necessary to reflect current marketing 
conditions and to assure orderly marketing conditions in the marketing 
area, in that such rule is necessary to permit the continued pooling of 
the milk of dairy farmers who have historically supplied the market 
without the need for making costly and inefficient movements of milk;
    (b) This suspension does not require of persons affected 
substantial or extensive preparation prior to the effective date; and
    (c) Notice of proposed rulemaking was given interested parties and 
they were afforded opportunity to file written data, views or arguments 
concerning this suspension. No comments were received.
    Therefore, good cause exists for making this order effective less 
than 30 days from the date of publication in the Federal Register.

List of Subjects in 7 CFR Part 1131

    Milk marketing orders.

    For the reasons set forth in the preamble, the following provisions 
in title 7, part 1131, are amended as follows:

PART 1131--MILK IN THE CENTRAL ARIZONA MARKETING AREA

    1. The authority citation for 7 CFR Part 1131 continues to read as 
follows:

    Authority: 7 U.S.C. 601-674.


Sec. 1131.7   [Temporarily Suspended in Part]

    2. In Sec. 1131.7(c), the words ``50 percent or more of'', 
``(including the skim milk and butterfat in fluid milk products 
transferred from its own plant pursuant to this paragraph that is not 
in excess of the skim milk and butterfat contained in member producer 
milk actually received at such plant)'' and ``or the previous 12-month 
period ending with the current month.'' are suspended for the months of 
April 1, 1996, through March 31, 1997.

    Dated: April 16, 1996.
Michael V. Dunn,
Assistant Secretary, Marketing and Regulatory Programs.
[FR Doc. 96-9826 Filed 4-19-96; 8:45 am]
BILLING CODE 3410-02-P