Diversions and Transfers

In late 1998, the Commission adopted a rule changing the treatment of “diverted” or “transferred” milk.[1]   These provisions responded to the concern that the price regulation was serving to attract milk into the New England marketplace artificially, or drawing milk into the market which otherwise would not be brought in by market force demand. The rule amendments provided further definition and limitation for the movement of such milk into the market. The amendments were intended to restrict the pooling of milk at a compact pool plant solely for the purpose of obtaining the compact producer payment.



[1] 63. Fed. Reg. 65,517 (1998) (codified at 7 C.F.R. §§ 1301.01; 1301.12; 1301.23 and 1304.2.)