Skip Jones Milk and Dairy Consulting

Each handler’s obligation for Class 1 milk is determined by the data submitted by that handler. In general, handlers tend to report Class 1 usage based upon sales. All other class usages are reported using production records.

Consideration should be given to reporting Class 1 usage based upon production. I personally feel that this method is superior to the “sales” method and is less complicated for the plant personnel who submit the reports to the Milk Pooling Branch. For example, if Class 1 is based upon production, there is no need to report Class 1 packaged inventories.

Because Class 1 milk has had the highest regulated price historically, it is imperative that handlers pay no more than they are obligated to pay for Class 1 milk. It is good business practice to compare the sales method and the production method and determine which is economically beneficial to the handler.

I am offering my consulting services for dairy accounting and Milk Pooling issues. I can also offer second opinions as they relate to audit findings. If you have recently undergone an audit by the Milk Pooling Branch, I can review the audit and give you my opinion as to accuracy and appropriateness of the findings.

All dairy processors should understand that audit findings are preliminary and subject to review. Consequently, an investment in a few days of my consulting services may allow your company to recoup thousands of dollars in overcharges.

Please feel free to contact me so that we can discuss your situation and develop possible solutions.

http://dairyconsultant.bxbweb.com/
skip@cwo.com
916 205 1346

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