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Industry Terms

BLEND PRICE -The actual price per hundredweight due or paid to producers for milk during a one-month period after computation of the licensed dealer's or handler's producer obligation pursuant to the applicable Rules, Regulations, or Orders of the Board or applicable Orders established by the United States Department of Agriculture.

BUTTERFAT - Natural fat found in raw milk.  Butterfat is about 3.5 to 5.5 percent of unprocessed milk.

BUTTERFAT TESTING - On-site testing of composite or fresh samples of milk at the dairy plant or commercial laboratory for butterfat level.  Milk is also tested for other components such as protein and nonfat milk solids.

CITATION - A document alleging that a person has violated a Law or Regulation administered by the Board or an Official General Order issued by the Board.

CLASS I MILK - Milk that is utilized for Class I products such as packaged beverage type milk.

CLASS II MILK - Milk used in producing ice cream, cottage cheese, and fluid cream products.  See Federal Market Regulations for specific products.

CLASS III MILK - Milk used to produce dairy manufactured products such as hard cheeses.  See Federal Market Regulations for specific products.

CLASS IV MILK - All skim milk and butterfat used to produce nonfat dry milk powder and butter.  See Federal Market Regulations.

CONSUMER - Any person, natural, corporate, statutory or governmental, other than a  milk dealer or milk handler, who purchases milk for consumption or use by themselves or others.

CONTAINER - A bottle, carton , bag, etc. in which milk is packaged.

COOPERATIVE - An agricultural association or corporation of producers organized to engage in making collective sales or in the marketing of milk for producers under current contract with it, as defined by the Federal Capper-Volstead Act.

DAIRY MANUFACTURED PRODUCTS - Items such as cheese, butter, powdered milk, etc. made from milk.

DISPENSER PRICES – Minimum prices to be changed by and paid to a licensed milk dealer when the product purchased is delivered or made available in dispensers to stores, hotels, restaurants, hospitals, and institutions, for on-premises consumptive use.

EXAMINATIONS - Pennsylvania Milk Marketing Board-sanctioned tests administered to weigher/samplers and milk testers.

FAT FREE OR NONFAT MILK – New labeling, effective January 1, 1998, by the FDA to replace skim milk labels.

FIXED FEE - License fee imposed by the Pennsylvania Milk Marketing Board under the provisions of the Milk Marketing Fee Act.

GRADE B MILK - Raw milk prohibited from use as a Class I product.

HANDLER/DEALER - Any person who purchases or receives on consignment milk for processing or manufacture and further sales.

HUNDREDWEIGHT - A measure of milk approximately 11.6 gallons.

JUGGER - One who produces, processes, and sells milk at his/her farm only.  Juggers are exempt from licensing  provisions of the Pennsylvania Milk Marketing Board.

LICENSE - Authorization granted by the Pennsylvania Milk Marketing Board making it legal for all handlers, including milk dealers, subdealers and haulers to buy, transport, and/or sell milk in the Commonwealth of Pennsylvania.

MILK - The natural lacteal secretion of bovines, including fluid milk and cream.

MILK COMPONENTS - The components of milk, including butterfat, protein, nonfat solids, and any other components for which the prices paid by handlers to producers are established by marketing agreements or orders.

MILK MARKETING AREA – One of six separate geographic areas in Pennsylvania established by the Milk Marketing Board, each having its own prices in accordance with the Official General Orders.

MILK MARKETING FEE ACT - An act establishing fees for certain licenses, certificates, and activities relating to milk marketing.

MILK MARKETING LAW - Law enacted by the state's General Assembly in 1937, and periodically amended thereafter, to regulate and monitor the milk industry within the Commonwealth through the Milk Marketing Board.

MILK PRODUCERS' SECURITY ACT - Law that requires all milk dealers who purchase milk from Pennsylvania farmers to submit bonds to the Board.  Those with bonds securing less than 75% of their raw milk purchases must also pay into the Milk Producers' Security Fund maintained by the Pennsylvania Milk Marketing Board for the benefit of the Pennsylvania dairy farmer.

MULTIPLE COMPONENT PRICING  - Price system based on the market value of protein, nonfat solids, butterfat, or, other components of milk.

OFFICIAL GENERAL ORDER - An order issued by the Pennsylvania Milk Marketing Board establishing minimum producer or resale prices, or addressing other issues involving the orderly marketing of milk in Pennsylvania.

OVER-ORDER PREMIUM - An amount over the applicable Federal Order or Pennsylvania Milk Marketing Board-established base price, which the Milk Marketing Board mandates be paid to Pennsylvania producers for all Class I milk produced, processed, and utilized in Pennsylvania.

OVER-PRICE SUPPLY PREMIUM - A price paid to a producer or cooperative for all classes of milk that is in excess of the producer price mandated by the Board.

PERSON - Includes an individual, corporation, association, partnership, limited partnership, or other unincorporated enterprise owned or conducted by or on behalf of two or more individuals or other persons.

PETITIONERS - Individuals or organizations who officially submit a request for the Pennsylvania Milk Marketing Board to hold a hearing to review specific problems that come under the Board's jurisdiction.

PREVAILING AREA MILK COST – current cost of milk (determined by the Pennsylvania Milk Marketing Board) for a particular marketing area.

PRICE SURVEY - Survey conducted to determine the wholesale, retail, or out-of-store prices for Class I controlled milk products according to size and type.

PROCESSOR - One who purchases raw milk from producers or other dealers and processes, bottles, and delivers the product to wholesale and/or retail accounts.

PRODUCER - Individual or organization milking cattle (a.k.a. The dairy farmer).

PROMPT PAYMENT - The requirement that milk dealers pay for milk purchases from producers with advance payments to be made for the first 15 days' purchases by the last day of the month in which the milk was received or purchased and final payments to be made no later than the 18 th day of the month following that in which the milk was received or purchased.

RAW/FLUID MILK - The form of milk when it is purchased from the producer.

REDUCED FAT MILK – New labeling, effective January 1, 1998, by the FDA to replace 2% milk label (5 grams of fat per serving).

RETAIL OUT-OF-STORE PRICES (cash and carry) - Minimum prices to be charged by and paid to the grocery store, dairy store, or similar mercantile establishment by a consumer when the product purchased is for off-premises consumption or use.

SERVICE CONTRACT - A contractual agreement under which one milk dealer performs manufacturing, processing, bottling, or delivery services for another milk dealer.  Per Official General Order A-875, any tolling arrangement must be reviewed and approved by the Pennsylvania Milk Marketing Board prior to the commencement of operations.

SOMATIC CELLS - White blood cells that have the same function as human white blood cells.

STORE - Includes a grocery store hotel, restaurant, soda fountain, dairy products store, or any similar mercantile establishment which sells or distributes milk.

SUBDEALER OR SUBHANDLER - Any person other than a store or controlled affiliate who handles milk within the state and delivers all such milk--in the same container in which it was purchased--to consumers, schools, institutions, or stores.

WEIGHER/SAMPLER CERTIFICATION - The biennial federal certification of weigher/samplers through on-site observation of the drivers to determine compliance with established milk pickup procedures.  This is to include observation of sterile techniques in sampling, proper measurement of milk, etc.

WHOLESALE PRICES - Prices charged by and paid to a licensed milk dealer when the product purchased is delivered or made available to a grocery store, dairy store, or similar mercantile establishment for resale to a consumer. This price is also charges to hotels, restaurants, hospitals, and institutions, irrespective of ultimate use.