HAR §4-60-14. Milk production quotas in the Hawaii milk shed

(a) The total daily production quota for the Hawaii milk shed shall be 621 hundredweight or 722.09 cans per day. The daily production quota shall be distributed pro rata to all licensed producers or producer-distributors in the Hawaii milk shed based on their assigned daily production quota at the end of the month prior to the effective date of this amendment. A licensed producer or producer-distributor may refuse in writing, to accept all or part of their pro rata increase in daily production quota. Any quota increase that is refused shall be distributed pro rata to the remaining licensed producers or producer-distributors based on their new daily production quota. The branch shall provide the board with a report showing the distribution of the daily production quota at the next board meeting following the effective date if this amendment and an annual report listing all licensed producers and their assigned quotas at the end of each fiscal year which reflects all quota increases and transfers granted within the milk shed during that year. These reports to the board shall become part of this section and shall supercede and replace any prior dated reports which have been made part of this section. (b) The production quotas established in subsection (a) do not guarantee that all of the milk produced thereunder shall be utilized as class I in the Hawaii milk shed. The established quota may be considered as a quantity measure representing a producer’s share of the estimated annual class I requirements of the market. Each month the total class I usage in the market shall be allocated on a pro rata basis to all quota holders and payment to them shall be determined accordingly. It shall be recognized that the class I requirements of the market vary from day to day and from one season of the year to another. Milk production is also subject to daily and seasonal variations. Producers cannot adjust their production to meet day to day changes in demand but they can make adjustments in their production pattern to compensate for seasonal changes. Producers shall be aware of changes in demand and adjust their production practices to maximize their operating income. [Eff 7/16/80; am 9/1/81; am and comp 12/1/85; am and comp 5/1/87; am 9/1/89; am 10/1/92; am 1/30/93; am 10/4/97] (Auth: HRS §157- 13) (Imp: HRS §157-31)