Notice of Intent to Change Supplier

The Department may require from any store, retail outlet or subdealer licensed for the sale of milk the following notice of its intent to alter or to add any processor or dealer as a supplier of milk. This requirement shall apply to all stores and retail outlets which receive milk supplies in a volume of 25 cases per drop or more. (a) a two week written notice sent to the Department by certified mail upon a form furnished by the Department for that purpose. The store or retail outlet shall forward a copy of the written notice simultaneously to the existing supplier. (b) The noticed change or addition of supplier may go forward as planned unless the Department otherwise notifies the store, retail outlet or subdealer within two weeks of receipt of notice. (c) The foregoing notice shall not be required in advance of the change or addition of a supplier: 1. if the existing supplier is failing to provide adequate service; or to supply products desired by the store, retail outlet or subdealer; or to supply milk in compliance with minimum health standards; or 2. if the store, retail outlet or subdealer must immediately supplement normal supplies in response to an unanticipated increase in demand or in response to an emergency. In such instances the regulatee shall report the change or addition to the Department not later than two weeks thereafter. (d) The Department may deny approval to change supplier(s) if it determines: 1. that such change would violate legislation or regulations prohibiting pricing below cost or discriminatory pricing by processors or dealers (including handlers, producer- handlers, subdealers and producer-dealers); 2. that, as of the time of change, the store, retailer or subdealer will owe any supplier a substantial level of indebtedness for milk products received. (e) In furtherance of the purpose of this provision, including the preservation of the financial stability of producer farmers and the continuous, adequate supply of milk to the consuming public, all licensed milk dealers shall give written notice of 90 days to the Department and to any affected producer of an intent to terminate a producer as a supplier of raw milk. For urgent reasons stated in writing to the Department and to the producer, a dealer may terminate a producer more promptly. In such instances the Department, upon a determination of the validity of the reasons, may disallow the termination until completion of the 90 day notice period prescribed by 330 CMR 21.03.