[Federal Register Volume 62, Number 107 (Wednesday, June 4, 1997)]
[Notices]
[Page 30564]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-14477]


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 Notices
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 This section of the FEDERAL REGISTER contains documents other than rules 
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  Federal Register / Vol. 62, No. 107 / Wednesday, June 4, 1997 / 
Notices  

[[Page 30564]]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service
[Docket No. DA-97-08]


Milk in the New England and Other Marketing Areas; Determination 
of Equivalent Cheese Price Series

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Determination of equivalent price series.

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SUMMARY: It has been determined by the Secretary that the National 
Agricultural Statistics Service (NASS) U.S. average 40-pound block 
Cheddar cheese price is an equivalent cheese price alternative for use 
in computing the Basic Formula Price (BFP) which is used to establish 
milk prices in all Federal milk marketing orders. The Department has 
been using the simple average for the month of the National Cheese 
Exchange (NCE) 40-pound block Cheddar cheese price when computing the 
BFP. As a result of the closing of the NCE, a new cheese price series 
is needed to announce the BFP for May and future months. The NASS price 
will also be used to derive a protein price and/or milk quality 
adjustment in Federal milk orders that contain multiple component 
pricing plans.

EFFECTIVE DATE: June 5, 1997.

FOR FURTHER INFORMATION CONTACT: John F. Borovies, Chief, Order 
Formulation Branch, USDA/AMS/Dairy Division, Room 2971, South Building, 
P.O. Box 96456, Washington, DC 20090-6456, (202) 720-7183, e-mail 
address [email protected].

SUPPLEMENTARY INFORMATION: This action provides an equivalent cheese 
price series for calculation of the BFP which is used to derive milk 
prices in all Federal milk marketing orders (7 CFR Parts 1001, 1002, 
1004, 1005, 1006, 1007, 1011, 1012, 1013, 1030, 1032, 1033, 1036, 1040, 
1044, 1046, 1049, 1050, 1064, 1065, 1068, 1076, 1079, 1106, 1124, 1126, 
1131, 1134, 1135, 1137, 1138, and 1139). The Department has been using 
the simple average for the month of the NCE 40-pound block Cheddar 
cheese price data to compute the BFP. However, a new cheese price 
series is needed by June 5, 1997, to announce the BFP for May and 
subsequent months, and derive a protein price and/or milk quality 
adjustment in 10 Federal orders which contain multiple component 
pricing plans (7 CFR Parts 1030, 1033, 1036, 1040, 1049, 1065, 1068, 
1076, 1079, and 1124). Order provisions provide the Secretary authority 
to adopt an equivalent replacement if a price series needed to 
calculate the BFP is not available.
    Pursuant to the provisions of the Agricultural Marketing Agreement 
Act of 1937, as amended (7 U.S.C. 601-674), and the applicable 
provisions of the orders, as amended, regulating the handling of milk 
in the aforesaid marketing areas, it is hereby found and determined 
that:
    (1) Each Federal milk marketing order provides a BFP that is 
determined by the Department of Agriculture each month. The pricing 
formula is based on the prices paid to dairy farmers during the 
preceding month by unregulated manufacturing plants in Minnesota and 
Wisconsin, adjusted for changes in dairy product prices between the 
previous and current month. The NCE served as the source of prices for 
40-pound block Cheddar cheese used to construct the BFP in all Federal 
milk orders.
    (2) The price data was also used to calculate a protein price and/
or milk quality adjustment in 10 Federal orders which contain multiple 
component pricing plans.
    (3) Each order provides that if for any reason a price or pricing 
constituent required by the order for computing class prices or for 
other purposes is not available as prescribed in the order, the market 
administrator shall use a price or pricing constituent determined by 
the Secretary to be equivalent to the price or pricing constituent that 
is required.
    (4) The NCE ceased operating after April 25, 1997. The BFP 
announcement on May 5 was based on April prices reported on the NCE; 
however, a new cheese price series is needed by June 5 to compute the 
BFP for May and future months.
    (5) The new NASS price series will be announced weekly. It will 
include all transactions for bulk Cheddar cheese collected from plants 
located across the United States in which trades were placed during the 
previous week. Prices will be reported for the 40-pound block, 640-
pound block, and 500-pound barrel. The 40-pound block Cheddar cheese 
price data will be used in the computation of the BFP.
    (6) Accordingly, the new NASS U.S. average 40-pound block Cheddar 
cheese price is determined to be equivalent to the NCE price series for 
the purposes of computing the BFP used to establish milk prices under 
all Federal milk orders and deriving a protein price, and/or milk 
quality adjustment in Federal orders which contain multiple component 
pricing plans.
    The authority citation for 7 CFR Parts 1001 through 1139 continues 
to read as follows:

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

    Dated: May 29, 1997.
Shirley R. Watkins,
Deputy Assistant Secretary, Marketing and Regulatory Programs.
[FR Doc. 97-14477 Filed 6-3-97; 8:45 am]
BILLING CODE 3410-02-P