MILK MARKET ADMINISTRATION

MILK CONTROL ACT – A PRIMER

Policy Purpose

The act's policy statement declaration in § 81-23-102, MCA, includes, but is not limited to, the following summarization and has not substantively changed since 1939. The act provides for the regulation of the milk market in Montana. The act establishes that regulation of milk is in the public interest because milk is a necessary food article; adequate supply is vital to the public; and health regulations alone may not provide for adequate supply. The act specifies that it is a policy of the state to promote, foster, and encourage intelligent production and orderly marketing of milk dairy products.

Elements of the Milk Control Act

The act describes its policy purpose and authorizes necessary regulatory infrastructure. The act provides powers to the board to supervise, regulate, and control the milk industry. The act requires the Montana Department of Livestock to provide staff to the board to assist in investigating matters; bring proceedings to enforce orders of the board; and assist in technical, enforcement, and regulatory activities.

The act includes several specific provisions. Among these are the following:

  • mandatory licensing of businesses that produce or distribute milk in Montana,
  • assessments to fund the administration and enforcement of the act.
  • establishment of minimum prices to be paid for raw milk according to how the milk is utilized, referencing federal milk classifications,
  • authorization for a quota plan and a statewide pooling arrangement.
  • governance of fair-trade practices, setting forth four specific trade practices: prohibitions against secret rebates and discounts; gifts to secure fluid milk and cream business; offering special prices to customers not available to all customers who purchase under like terms/conditions; and payment (by a distributor to a producer) of a price lower than applicable producer price,
  • expression of legislative intent that milk produced outside of the state is subject to the act the instant that the milk is subject to regulation by the state, and
  • statement that the act does not supersede or interfere with federal law regulating interstate commerce.