Section 100.14. Custom processing services to milk producers.

  Chapter 126 , Stats. , does not apply to a dairy plant operator who takes temporary custody of producer milk solely to process it for the milk producer, provided that all the following apply:

(1)  The producer retains title to all of the milk and all of the processed dairy products made from that milk.

(2)  The operator does not market the milk or processed dairy products, but promptly returns the processed dairy products to the producer or the producer's agent for consumption or marketing.

(3)  The operator does not commingle producer-owned milk or dairy products with other milk or dairy products.

(4)  The operator provides the processing services under a written contract with the producer or the producer's agent. The contract shall clearly and conspicuously disclose all the following:

(a) That the producer retains title to all the milk shipped to the operator for processing, and all the processed dairy products made from that milk.

(b) That the producer's milk shipments to the operator are not secured under ch. 126 , Stats.

(5)  The operator keeps a copy of the contract under sub. (4) for at least 3 years after the contract ends, and makes it available to the department for inspection and copying upon request.

(6)  The operator submits to the department, by May 1 of each year, an affidavit certifying that the operator qualifies for the custom processing exemption under this section.

CR 02-113 : cr. Register April 2003 No. 568 , eff. 5-1-03.