four cents for each one-tenth of one percent of butterfat therein above or below 3.5 percent. The minimum price for Class II milk shall be plus or minus, for each one-tenth of one percent of butterfat therein above or below 3.5 percent. An amount computed as follows: subtract from the respective class prices an amount computed pursuant to § 1002.40 (d) (2) and divide by 35. The minimum price for Class III milk shall be plus or minus, for each one-tenth of one percent of butterfat therein above or below 3.5 percent, an amount computed as follows: Multiply by 0.120 and round to the nearest one-tenth cent the simple average of the daily wholesale selling prices per pound (using the midpoint of any price range as one price) reported during the period between the 16th day of the preceding month and the 15th day, inclusive, of the current month by the United States Department of Agriculture for Grade A (92-score) bulk creamery butter in the New York City market.

§ 1002.42 Transportation differentials.

The class prices set forth in § 1002.40 and the fluid skim differential set forth in § 1002.43 shall be subject to a transportation differential determined in accordance with paragraphs (a) through (d) of this section.

(a) The market administrator shall determine a freight zone for each pool plant, each partial pool plant, or for each plant at which milk products subject to the provisions of § 1002.84 is first found. Such freight zone shall be the shortest highway mileage from the plant to the nearest of the following points as computed by the market administrator from data contained in Mileage Guide No. 5, without supplements, issued on July 20, 1949, effective August 21, 1949, by the Household Goods Carriers' Bureau, Agent, Washington, D.C.: Mount Vernon or Yonkers in the State of New York; Tenafly, Glen Ridge, East Orange, Elizabeth, Hackensack, Hillside, Irvington, or Passaic in the State of New Jersey. The freight zone for plants located in New York City, Nassau, and Suffolk Counties in the State of New York, or in Essex, Hudson, and Union Counties in

the State of New Jersey shall be in the 1-10 mile zone. The market administrator shall publicly announce the freight zones for pool plants.

(b) The market administrator shall determine and publicly announce freight zone for each minor civil division (township, borough, incorporated village, or city) within the nearby differential area or in which farms included in a pool or partial pool unit are located by computing the shortest highway mileage distance from the nearest point in the minor civil division to the nearest point specified in paragraph (a) of this section, using the mileage guide specified in such paragraph supplemented by United States Geological Survey maps. In States where the smallest governmental unit except for incorporated cities or villages is the county, a zone for the county shall be determined in the same manner as for minor civil divisions. The zone for each farm shall be the zone of the minor civil division or county in which the farm is located.

(c) The differential rates applicable at plants shall be as set forth in the following schedule:

(d) The differential rate applicable to each pool unit or partial pool unit shall be computed each month as follows: multiply the volume of pool milk received from farms in each zone by the rate for that zone as set forth in the schedule in paragraph (c) of this section, add the resulting values for all zones of the unit, divide such sum by the total volume of milk received by the unit and round to the nearest 0.1 cent. Rates shall be computed separately for columns B and C of such schedule.

(e) In the event that a plant in the 401 miles and over freight zone becomes a pool plant, a ten mile zone shall be determined for such plant and for each farm in any pool unit delivering to such plant. The column B differentials in paragraph (c) of this section shall be extended at the same rate as provided in such column for such plant or unit: Provided, That in no case shall such differential cause the class price or the uniform price for such plant or unit to be less than the Class III price for such plant or unit: Provided further, That

farms of units delivering to such plant shall be deemed to be in the same zone as the plant.

§ 1002.43 Fluid skim differential.

The handler shall pay a fluid skim differential per hundredweight for skim milk, other than that derived from Class I-A or Class I-B milk subject to the pricing provisions of § 1002.40 (a) or (c) or of another order except that classified as Class II under Part 1015 of this chapter, which is disposed of to outlets in the marketing area, which skim milk leaves or is on hand at the plant in the form of: milk, fluid skim milk in consumer packages or in dispenser inserts, half and half, cultured milk drinks containing 3 percent or more but not more than 5 percent butterfat, and fluid skim milk in bulk delivered to any such outlet which is engaged in the marketing or packaging of bulk fluid skim milk, for all skim milk except that derived from the classes specified above which skim milk leaves the plant in the form of products and is shipped to a plant or marketing area under another Federal order which skim milk is assigned under such order to Class I, and for all skim milk which is not established to have been otherwise utilized or disposed of. Such fluid skim differential shall be computed as follows: deduct the price of Class II milk computed pursuant to § 1002.40 (d) from the price for Class I-A milk computed pursuant to § 1002.40 (a), and divide by 0.9125: Provided, That with respect to skim milk so utilized or disposed of in half and half, this differential shall apply only to that quantity of skim milk in excess of 4.5 times the quantity of butterfat in such half and half.

§ 1002.44 Connecticut order differential.

For milk subject to the classification and pricing provisions of Part 1015 of this chapter which milk is received at a pool plant or a plant distributing milk, fluid milk products, concentrated fluid milk, cultured or flavored milk drinks, cream, half and half, fluid cream products, or fluid skim milk in the marketing area which plant is not a regulated plant under Part 1015 of this chapter, each handler shall pay a differential for milk classified as Class I-A or Class II equal to the difference between the Class II

price under Fart 1015 of this chapter and the appropriate class price as adjusted for appropriate differentials inIcluding the direct delivery differential set forth in § 1002.71(c). If the skim milk of such milk is assigned to skim milk subject to the fluid skim differential this differential shall be the same as the fluid skim differential pursuant to § 1002.43. In the event that such milk is received at more than one plant, the obligation shall fall upon the operator of the first pool plant where received, or if not received in a pool plant, by the operator of the first plant in the marketing area where first received, or if not received in such a plant, by the operator of the plant where the Class I-A or Class II classification was established. § 1002.45

Producer-handler price dif

ferential.

For milk received from a handler who is designated a producer-handler under this part or who meets the requirements of a producer-handler under another order, which milk is assigned to Classes I-A, I-B or Class II, each handler shall pay a differential equal to the difference between the price of the class to which the milk is assigned and the Class III price adjusted for appropriate differentials for butterfat and the location of such handler's plant; and for skim milk received or derived from milk of such producer-handler which is assigned to skim milk subject to the fluid skim differential each handler shall pay a differential equal to the fluid skim differential pursuant to § 1002.43.

§ 1002.46 Use of equivalent price or index.

If for any reason a price or index specified in §§ 1002.40 through 1002.47 for use in computing and announcing class prices or for any other purpose is not reported or published in the manner therein described, the market administrator shall use a price or index determined by the Secretary to be equivalent to or comparable with the price or index specified.

(a) Not later than the 25th day of each month, or the next succeeding workday in any month in which the 25th day is a Sunday or holiday:

(1) The monthly wholesale price index for all commodities in the preceding month as reported by the Bureau of Labor Statistics, United States Department of Labor, and the resulting index determined pursuant to § 1002.40 (a) (1) multiplied by 100.

(2) The utilization adjustment percentage computed pursuant to § 1002.40 (a) for the following month.

(3) The preliminary Class I-A price computed pursuant to § 1002.40 (a) for the following month.

(4) The average, for the period beginning with the 25th of the immediately preceding month and ending with the 24th of the current month of the highest prices reported daily by the United States Department of Agriculture for U.S. Grade A or U.S. 92-score butter at wholesale in the New York market. (5) The preliminary calculation for the following month pursuant to § 1002.40 (d) (1).

(6) The index of the cost of production for the preceding month computed by the market administrator as follows:

The index of the cost of production computed by the New York State College of Agriculture at Cornell University (1910-14 base) converted to a 1955 base.

(7) The index computed by dividing the Class I-A formula price prior to the seasonal adjustment, for the following month by $5.20.

(8) The utilization percentage for the month one year earlier than the succeeding month.

(9) Other statistics relating to economic conditions affecting the market supply and demand for milk.

(b) Not later than the 5th day of each month, or the next succeeding workday in any month in which the 5th day is a Sunday or holiday, for the preceding month or such other period specified. (1) The minimum class prices pursuant to § 1002.40.

(2) The butterfat differentials pursuant to § 1002.41.

(3) The fluid skim differential pursuant to § 1002.43.

(4) The simple average of the daily wholesale selling price per pound (using