ORS 583.525¹
Handler not to purchase from producer for less than minimum price
  • allowable deductions by handler
  • additional deductions

(1) It is the intent of the provisions of ORS 583.001 (Short title), 583.004 (Use of fees in enforcement of chapter), 583.021 (Exemption of certain producer-handlers), 583.028 (Application of audit, pooling, equalization and quota provisions) and 583.410 (Purpose) to 583.565 (Effect of termination of chapter) to minimize and eliminate as far as possible and practical, certain unfair and inequitable trade and competitive practices and advantages that have existed between types or classes of handlers of milk.

(2) No handler shall purchase milk from a producer or producers for less than the minimum prices established under ORS 583.505 (Orders establishing minimum prices for sale of milk by producers to handlers). Each handler shall pool such milk in accordance with the provisions of ORS 583.510 (Pooling and equalization of milk in market areas) and 583.520 (Department to provide system for equitable payments to producers where no market pool exists), whichever is applicable.

(3) Notwithstanding the provisions of ORS chapter 62 or amendments thereto, or other laws to the contrary, a handler may only deduct from the amounts due a producer or producers, the following:

(a) Deductions by the handler for payment to the Oregon Dairy Products Commission under ORS 576.051 (Definitions for ORS 576.051 to 576.455) to 576.455 (Moneys of abolished commission), payments to the State Department of Agriculture under this chapter.

(b) A pooling charge of not to exceed the amount established by the department, if such handler actually performs a pooling service for the producer and if such pooling charges are limited to milk purchased from or handled for an individual producer.

(c) Deductions based on assignment, approved and signed by the producer, directing the handler to pay a specified sum to a person other than such handler on the producer’s behalf. Such "other person" shall not be an officer, employee, agent or representative of the handler.

(d) Deductions based on an assignment, approved and signed by the producer, authorizing amounts to be retained by the handler to cover or reimburse such handler for bona fide loans or advances of money made to the producer, or for commodities, articles or merchandise which have been furnished by the handler to the producer.

(e) Deductions for hauling charges in accordance with applicable common or contract carrier rates approved by the Public Utility Commission. If no rates have been established by the Public Utility Commission for the hauling of the milk which is covered by the deduction, then such deduction shall not exceed the rate established by the department after public hearing under the provisions of ORS chapter 183 and taking into consideration the advice of the Public Utility Commission.

(f) After the above deductions have been taken, if any, a cooperative corporation or association organized under the laws of any state and engaged in marketing or making collective sales of milk produced by its members or other producers represented by or through the cooperative, may then take and retain such other deductions from payment to its members or producers, differentials as may be specifically authorized in advance by contract or membership agreements between the cooperative and its members.

(4) A handler when making payment for milk, shall clearly identify and explain the deductions to the producer.

(5) The department after public hearing and as authorized by ORS chapter 183, may approve additional deductions or further orders as may be necessary to carry out the provisions of this section. Such determinations shall not result in an undue advantage for one handler over another handler or permit a handler to evade or circumvent the intent of this section. [1963 c.442 §23; 1977 c.307 §14; 2003 c.604 §105]

1 Legislative Counsel Committee, CHAPTER 583—Milk Marketing, Production and Distribution, https://­www.­oregonlegislature.­gov/­bills_laws/­Archive/­2007ors583.­pdf (2007) (last ac­cessed Feb. 12, 2009).
2 OregonLaws.org contains the con­tents of Volume 21 of the ORS, inserted along­side the per­tin­ent statutes. See the preface to the ORS An­no­ta­tions for more information.
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent. Currency Information