Alberta Milk Marketing Regulation

(Consolidated up to 256/2025) ALBERTA REGULATION 151/2002 Marketing of Agricultural Products Act ALBERTA MILK MARKETING REGULATION Table of Contents Part 1 General 1 Interpretation 2 License required 3 Application for licence 4 Types of licences 5 Licence not transferable 6 Issue, renewal or refusal of licence 7 Suspension or cancellation of licence 7.1 Reinstatement of licence 7.3 Applications for stay 8 Processor records to be maintained 9 Container identification 10 Service charge 11 Disposition 12 Written orders, etc. Part 2 Marketing Division 1 Quota 15 Continuous daily quota 16 Quota adherence 18 Quota abeyance 19 Cancellation of quota 19.1 Quota transfer exchange 20 Quota transfers 21 Appointment of attorney 22 Under production quota credits Division 2 Milk Delivery, Prices 23 Milk volume 24 Milk delivery 25 Milk allocation 27 Regulated product classification 28 Class prices 29 Pooling 30 Testing 30.1 Contraventions 30.2 Milk Grade 31 Reduction of amount payable 32 Inhibitors, drug residue ramifications Division 3 Reports, Payments 33 Information to be provided 34 Monthly report 35 Payment to producers 36 Payments 37 Processor payment adjustment 38 Payment statement 39 Adjustments Division 4 Variation in Authorized Marketing Division 5 Prohibitions 42 Purchasing below minimum price 43 Processed milk prohibition 43.1 Processed milk marketing prohibition 44 Substance removal prohibited 46 Licence required to market 47 Licence required 47.1 Limit on quota holders Part 3 Expiry and Coming into Force 48 Expiry 49 Coming into force Schedule Part 1 General Interpretation 1 (1) In this Regulation, (a) “continuous daily quota” means the number of kilograms of milk fat allotted by Alberta Milk per day under this Regulation to a producer as the producer’s share of the provincial entitlement; (b) “dairy animal care policy” means Alberta Milk’s policy relating to dairy animal care as amended from time to time; (c) “dairy plant” means a building where a processor processes a dairy product, and the land associated with that building; (d) “dairy year” means the 12-month period as set by Alberta Milk; (e) “delivery” occurs when a processor receives, at the dairy plant, milk that cannot be rejected under the Act or the Dairy Industry Act ; (f) “Director” means Director as defined in the Dairy Industry Act ; (g) “fluid milk” means any products of milk that are supplied, processed or marketed in fluid form, other than evaporated or condensed milk packaged in cans; (h) “inhibitor” means inhibitor as defined in the Dairy Industry Regulation (AR 139/99); (i) “licence” means a licence issued by Alberta Milk under this Regulation; (j) “milk component” means milk fat, protein and other solids or other components of milk designated by Alberta Milk; (k) “milk quality standards” means the chemical and microbiological quality standards for raw milk under Schedule 2 to the Dairy Industry Regulation (AR 139/99) for bacteria, somatic cells, inhibitors and freezing point; (l) “Plan” means the Alberta Milk Plan Regulation (AR 28/2022); (m) “proAction” means the program of the Dairy Farmers of Canada known as the proAction Initiative as recognized, amended or varied from time to time; (n) “provincial entitlement” means the combination of federal quota, as defined in the Dairy Products Marketing Regulations (Canada) (SOR/94‑466) under the Canadian Dairy Commission Act (Canada), that is authorized for Alberta with respect to a dairy year and quota for intra-provincial trade authorized by Alberta Milk that is allocated by Alberta Milk to producers to ensure that the Provincial Market Sharing Quota allocated to Alberta under the federal-provincial agreement known as the National Milk Marketing Plan is produced and marketed during that dairy year; (o) “provincial reserve” means an amount of unallocated continuous daily quota resulting from a producer’s going out of business or any other source; (p) “raw milk” means milk that comes from a dairy farm and has not been pasteurized within the meaning of the Dairy Industry Act . (2) A reference to a class or sub‑class of milk means a class or sub-class of milk as set out in the directives and administrative orders of Alberta Milk made under section 27. (3) The words defined in the Plan apply to this Regulation. (4) A reference to the Dairy Industry Act includes a reference to the regulations under that Act. AR 151/2002 s1;58/2003;152/2005;125/2008;171/2016;34/2019; 210/2022;256/2025 Licence required 2 (1) A person who is a producer or processor must hold a licence issued by Alberta Milk. (2) A person who holds a licence must comply with the terms or conditions of the licence. Application for licence 3 An application for a licence must (a) be made to Alberta Milk on a form satisfactory to Alberta Milk, (b) include a recommendation by the Director, (c) include the approval of any municipality or other person or agency that Alberta Milk requires, and (d) for producers, be accompanied by a nominal fee to cover administrative service as set by Alberta Milk from time to time. AR 151/2002 s3;34/2019 Types of licences 4 (1) Alberta Milk may issue (a) a producer licence, or (b) a processor licence. (2) A producer licence authorizes the licensee to produce regulated product for delivery to a processor to whom the licensee has been directed by Alberta Milk to deliver regulated product. (3) A processor licence authorizes the licensee (a) to accept regulated product and agricultural product for processing, as directed by Alberta Milk, (b) to operate a dairy plant, and (c) to market dairy product from that dairy plant. (4) A person may hold both a producer licence and a processor licence. Licence not transferable 5 A licence issued by Alberta Milk is not transferable. Issue, renewal or refusal of licence 6 (1) If Alberta Milk is satisfied that the applicant meets the requirements of this Regulation and the requirements of the Dairy Industry Act , it may issue a licence to an applicant. (2) Alberta Milk shall not issue more than one producer licence with respect to a dairy farm operated as a unit at one location or more than one processor licence with respect to a dairy plant operated as a unit in one location. (3) Alberta Milk may include conditions in the licence. (4) In addition to conditions referred to in subsection (3), the requirements of the Act, this Regulation, the Dairy Industry Act , the Plan and administrative orders and directives of Alberta Milk pursuant to this Regulation are conditions of a licence issued under this Regulation. (5) A licence issued under this Regulation may not apply to more than one dairy farm or dairy plant. (5.1) If a producer owns more than one dairy farm, the producer must apply for separate licences for each dairy farm. (6) Alberta Milk must be satisfied that a producer has met the qualifications of and has registered with proAction before issuing a licence to the producer. (7) When the applicant for a licence has not previously been licensed as a producer, Alberta Milk may grant a licence to the applicant for a period not exceeding 6 months to enable the applicant to meet the qualifications of and register with proAction. (8) A licence granted under subsection (7) expires on the earlier of (a) the end of the period specified by Alberta Milk in the licence, and (b) the date on which the person meets the qualifications of and registers with proAction and Alberta Milk issues a producer licence to the person. (9 ) All producers shall comply with Alberta Milk’s dairy animal care policy. AR 151/2002 s6;125/2008;171/2016;34/2019;210/2022 Suspension or cancellation of licence 7 (1) Licences issued by Alberta Milk continue in effect unless suspended or cancelled. (2) Alberta Milk may suspend or cancel a licence if (a) Alberta Milk finds that the licensee has not complied with the Act, the Plan, this Regulation, the Dairy Industry Act , conditions of the licence or terms of an agreement entered into pursuant to the Alberta Milk Negotiation and Arbitration Regulation , (b) the suspension or cancellation has been recommended by the Director, in the case of an alleged contravention of the Dairy Industry Act , (c) an assessment or fee under the Dairy Industry Act or a levy, service charge, fee or assessment under the Plan remains unpaid for a period of 30 or more days after it is due, (d) there has been a change (i) in the ownership or location of any dairy farm or dairy plant in respect of which the licence is issued, or (ii) in the address or ownership of the licensee, (e) a producer contravenes section 24(1), (f) a processor accepts delivery of regulated product from a producer other than a producer directed to the processor by Alberta Milk, (g) a producer fails to meet the qualifications of and register with proAction, or (h) a producer fails to comply with the dairy animal care policy. (2.1) If a producer’s milk grade as determined under section 30.2 is a grade that warrants suspension or cancellation of the producer’s licence according to the directives and administrative orders of Alberta Milk, Alberta Milk may suspend or cancel that producer’s licence in accordance with its directives and administrative orders. (2.2) Repealed AR 210/2022 s3. (2.3) Alberta Milk may cancel a processor’s licence if the processor ceases processing milk or dairy products for a period of 6 consecutive months. (3) If a licence is suspended or cancelled under this section, Alberta Milk must notify the Director and the person to whom the licence was issued of that suspension or cancellation. (4) If a licence is suspended or cancelled, the person to whom the licence was issued (a) must, on receiving a notice of the suspension or cancellation, proceed as directed by Alberta Milk, and (b) may apply to Alberta Milk for an order staying the suspension or cancellation pending the determination of a review or an appeal under Part 5 of the Act. AR 151/2002 s7;152/2005;125/2008;171/2016;34/2019;210/2022; 256/2025 Reinstatement of licence 7.1 (1) Subject to subsection (2), Alberta Milk may reinstate a producer’s licence that was suspended or cancelled under section 7(2.1) if Alberta Milk receives written confirmation from an analyst at an approved laboratory that samples of milk produced and taken, in a manner acceptable to Alberta Milk, from the producer’s bulk milk tanks after the licence was suspended or cancelled meet the requirements of Schedule 2 to the Dairy Industry Regulation (AR 139/99). (2) Alberta Milk may not reinstate a producer’s licence that was suspended or cancelled under section 7(2.1) except in accordance with the directives or administrative orders of Alberta Milk. (3) Alberta Milk may reinstate a producer’s licence that was suspended or cancelled under section 7(2)(g) if Alberta Milk determines the producer is now compliant under the proAction compliance policy. (4) Alberta Milk may reinstate a producer’s licence that was suspended or cancelled under section 7(2)(h) if Alberta Milk determines the producer is now compliant under the dairy animal care policy. AR 152/2005 s4;171/2016;34/2019;210/2022 7.2 Repealed AR 210/2022 s4. Applications for stay 7.3 Section 7.1 applies where a producer has applied for a stay of suspension or cancellation under section 7(4)(b). AR 171/2016 s6;210/2022 Processor records to be maintained 8 (1) A processor must maintain books, records and accounts, including agricultural product sold and setting out clearly how the processor’s business pursuant to the Plan and this Regulation is carried out. (2) A processor must maintain a record of all agricultural product transferred to any branch of that processor or to any dairy plant. (3) A processor must keep at the processor’s place of business complete records of the dairy product sales. (4) A processor must make records available on request for reconciliation and verification audit purposes. (5) Alberta Milk must pay at least 50% of any fee for any reconciliation or verification audit under subsection (4) and may allocate the remaining portion of the fee between Alberta Milk and the processor. (6) Each dairy plant must be audited under this section at least once each dairy year in accordance with the directives and administrative orders of Alberta Milk. AR 151/2002 s8;210/2022;49/2024 9 Repealed AR 210/2022 s6. Service charge 10 (1) A licensed producer must pay service charges for each hectolitre of milk that is transferred from the producer’s bulk milk tank to a milk transport vehicle. (2) The service charges referred to in subsection (1) are the following: (a) for marketing and nutrition education $1.50 for each hectolitre; (b) for research $0.05 for each hectolitre; (c) for the proper administration of the plan, as set by a directive or administrative order of Alberta Milk. (3) Alberta Milk may require processors to deduct service charges from producers and remit the amounts to Alberta Milk. (4) Alberta Milk may charge interest on late payment of service charges at the rate of 1% per month. (5) Repealed AR 58/2003 s3. (6) Repealed AR 34/2019 s8. (7) A service charge and interest on it is a debt due to Alberta Milk and may be recovered by legal action. AR 151/2002 s10;58/2003;152/2005;92/2007;125/2008; 74/2012;124/2013;34/2019;210/2022 Disposition 11 An application to Alberta Milk for the disposition of any matter must be made in writing and must be signed by the person making the application. Written orders, etc. 12 (1) Any order, directive, permission, authorization or approval of Alberta Milk required or referred to in this Regulation made with respect to a particular producer or a particular processor does not have any effect unless that producer or processor is notified in writing. (2) Subsection (1) does not apply to sections 24(1), (2) and (8), 35(1) and 36. Part 2 Marketing Division 1 Quota 13 and 14 Repealed AR 125/2008 s6. Continuous daily quota 15 (1) Alberta Milk may allot continuous daily quota from the provincial entitlement to all producers on a basis as determined by Alberta Milk. (2) Alberta Milk may retain a portion of the provincial entitlement of continuous daily quota in a provincial reserve. (3) Alberta Milk may allot all or part of the provincial reserve. (4) Nothing in this section requires Alberta Milk to allot any continuous daily quota if the provincial entitlement would be exceeded. (5) When changes occur in the Canadian domestic market, Alberta Milk may, in accordance with the National Milk Marketing Plan, adjust the continuous daily quota allotted to each producer. AR 151/2002 s15;125/2008;34/2019 15.1 Repealed AR 34/2019 s10. Quota adherence 16 (1) A licensed producer must deliver the producer’s continuous daily quota in accordance with the directives and administrative orders of Alberta Milk. (2) If a licensed producer delivers milk in excess of the producer’s continuous daily quota, Alberta Milk may charge the producer a levy for the excess milk in accordance with the directives and administrative orders of Alberta Milk. (3) Alberta Milk may deduct any levy charged under subsection (2) from payments owing to the licensed producer. AR 151/2002 s16;125/2008;34/2019;49/2024 17 Repealed AR 34/2019 s12. Quota abeyance 18 (1) A producer may apply to Alberta Milk to hold the producer’s quota in abeyance (a) if the producer’s herd or production from the herd is affected by a catastrophe, including but not limited to severe illness or death of the quota holder, sudden death of a significant part of the producing herd, destruction of the production facilities, severe infection of an uncontrollable disease in the dairy herd or a disease for which the health authorities require that the dairy herd be slaughtered, or (b) for any other reason that is acceptable to Alberta Milk. (2) On receipt of an application under subsection (1), Alberta Milk may hold the producer’s quota in abeyance for a period as determined by Alberta Milk. (3) If quota is held in abeyance, sections 16 and 19(1) do not apply. AR 151/2002 s18;152/2005;125/2008;34/2019 Cancellation of quota 19 (1) Subject to section 18(3), Alberta Milk may cancel a quota if (a) the producer’s licence is suspended for 2 weeks or more, or cancelled, (b) repealed AR 125/2008 s12, (c) the producer does not deliver in accordance with the producer’s continuous daily quota for 2 consecutive weeks, (d) the producer contravenes the terms and conditions of the producer’s licence, or (e) the producer contravenes the Act, the Plan, this Regulation or the Dairy Industry Act . (1.1) Alberta Milk may suspend a producer’s quota if the producer’s licence is suspended under section 7(2.1). (1.2) Alberta Milk must reinstate a producer’s quota suspended under subsection (1.1) if the producer’s licence is reinstated under section 7.1. (2) If a producer’s quota is cancelled under subsection (1) or suspended under subsection (1.1), the producer may apply to Alberta Milk to have that quota reinstated. AR 151/2002 s19;167/2004;152/2005;125/2008;34/2019;210/2022 Quota transfer exchange 19.1 (1) Subject to section 20, Alberta Milk may, by directive or administrative order, provide for a quota transfer exchange. (2) Without limiting the generality of subsection (1), a directive or an administrative order may include provisions respecting (a) dates, times, policies and procedures respecting transfers of quota, (b) the surrender of quota, (c) increasing or reducing quota, (d) service charges, (e) forms, and (f) any other matter Alberta Milk considers necessary to effect the orderly transfer of quota. AR 167/2004 s3;210/2022 Quota transfers 20 (1) A quota may be transferred only with prior written approval of Alberta Milk. (1.1) Alberta Milk shall not approve a transfer of quota if, in the opinion of Alberta Milk, the transferee or transferor is in contravention of the Dairy Industry Act , the regulations under that Act, this Regulation, the Plan, the Canadian Dairy Commission Act (Canada), the regulations under that Act or Alberta Milk’s administrative orders or directives. (2) A licensed producer may apply, or another person with the written approval of Alberta Milk may apply, pursuant to section 19.1, to transfer quota or to receive a transfer of quota. (3) A transfer of quota is effective on the first day of a month. (4) If a producer transfers the whole of the continuous daily quota allotted to the producer to another producer, the whole of the acquired continuous daily quota is available to the transferee in the next quota period, subject to the delivery requirements in section 16. (5) Repealed AR 125/2008 s13. AR 151/2002 s20;167/2004;125/2008;34/2019;210/2022 Appointment of attorney 21 (1) A person who has loaned money to a producer may apply to Alberta Milk to register an appointment of attorney. (2) An appointment of attorney must be in a form satisfactory to Alberta Milk. (3) An appointment of attorney is only effective from the date Alberta Milk acknowledges in writing that it is registered. (4) Only one appointment of attorney may be registered in respect of a licensed dairy farm owned by a producer, but a producer who owns more than one dairy farm may have separate powers of attorney registered against each licensed dairy farm. (5) Alberta Milk shall not register an appointment of attorney unless it is signed by the licensed producer that is affected by it. AR 151/2002 s21;34/2019 Under production quota credits 22 (1) A producer may transfer under production quota credits for any monthly period within the dairy year. (2) A producer may transfer under production quota credits only with prior written approval of Alberta Milk. (3) A producer applying to transfer under production quota credits must submit the application to Alberta Milk at least 14 days prior to the proposed transfer date on forms supplied by Alberta Milk or within any other time frame set by a directive or administrative order of Alberta Milk. (4) A transfer of under production quota credits approved by Alberta Milk is effective on the first day of a month in which the transfer occurs. (5) A producer who holds under production quota credits is subject to the service charges for the regulated product deliveries made against under production credits and subject to any interest charges for late payment under section 10. AR 151/2002 s22;125/2008;34/2019;210/2022 Division 2 Milk Delivery, Prices Milk volume 23 (1) A bulk milk tank must be levelled and calibrated in accordance with directives and administrative orders of Alberta Milk to ensure accurate measurement of the volume of milk contained in the bulk milk tank. (1.1) A meter owned by a processor must be calibrated in accordance with the directives and administrative orders of Alberta Milk to ensure accurate measurement of the volume of milk. (2) The volume measured in a bulk milk tank calibrated in accordance with subsection (1) by a bulk milk grader pursuant to the Dairy Industry Act is the volume on which producer payment is based. (3) The volume measured in a bulk milk tank calibrated in accordance with subsection (1) by a bulk milk grader pursuant to the Dairy Industry Act or calibrated by a meter owned by the processor in accordance with subsection (1.1) is the volume on which processor payment is based. AR 151/2002 s23;125/2008 Milk delivery 24 (1) A producer may only allow transportation of regulated product from the dairy farm, in accordance with the Dairy Industry Act and with directives and administrative orders of Alberta Milk. (2) The operator of a milk transport vehicle must transport regulated product from a producer to a processor as required by directives and administrative orders of Alberta Milk. (3) Alberta Milk has no obligation to direct that milk be delivered to a particular processor, and without limiting the generality of the foregoing, Alberta Milk may decline to direct that milk be delivered to a processor that is indebted to Alberta Milk. (4) The period of time between 2 deliveries of milk from a producer must be in accordance with the Dairy Industry Regulation (AR 139/99). (5) If Alberta Milk is notified by the Director under the Dairy Industry Act of a change in the period between 2 deliveries of milk referred to in subsection (4), Alberta Milk must notify the affected processor. (6) A processor shall not reject any regulated product that is delivered in accordance with this Regulation and the Dairy Industry Act by producers directed to deliver to the processor by Alberta Milk. (7) Alberta Milk may set transportation rates and routes. (8) A person operating a milk transport vehicle will be paid compensation in accordance with directives and administrative orders of Alberta Milk. (9) Repealed AR 34/2019 s18. AR 151/2002 s24;125/2008;34/2019 Milk allocation 25 (1) Subject to an agreement entered into pursuant to the Alberta Milk Negotiation and Arbitration Regulation (AR 153/2002), regulated product may be allocated and directed to processors or transferred between processors in accordance with the directives and administrative orders of Alberta Milk. (2) Payment for milk transferred under subsection (1) must be calculated and then invoiced or credited to processors in accordance with the directives and administrative orders of Alberta Milk. (3) Subject to an agreement between Alberta Milk and a processor, all costs related to the transportation of milk under this section are the responsibility of Alberta Milk. AR 151/2002 s25;58/2003;152/2005 26 Repealed AR 152/2005 s9. Regulated product classification 27 (1) Alberta Milk, by directives and administrative orders, (a) shall establish a regulated product classification, in accordance with the national harmonized milk classification established by the Canadian Milk Supply Management Committee as amended from time to time, and (b) may declare in force the national harmonized milk classification established by the Canadian Milk Supply Management Committee referred to in clause (a) in whole or in part, as it reads on a specific date or as amended from time to time. (2) Repealed AR 256/2025 s4. AR 151/2002 s27;58/2003;152/2005;125/2008;124/2013;34/2019; 256/2025 Class prices 28 (1) Subject to this section, a processor must make payment for all milk delivered to the processor on behalf of producers at not less than the prices set out in the directives and administrative orders of Alberta Milk. (2) Repealed AR 125/2008 s19. (3) Alberta Milk may set the conversion rates for the purpose of determining the volume of class 1 milk used to process class 1 dairy products. (4) Repealed AR 34/2019 s20. (5) Subject to any agreement entered into pursuant to the Alberta Milk Negotiation and Arbitration Regulation , Alberta Milk may set prices for the components of milk. (6) The price for milk is the price set out in a directive or administrative order of Alberta Milk, in accordance with the national harmonized classification according to how a processor uses the regulated product. (7) Alberta Milk must announce prior to the effective date the minimum price for all classes of milk set in accordance with the Plan and this Regulation. (8) Repealed AR 58/2003 s6. AR 151/2002 s28;58/2003;254/2007;125/2008;34/2019;210/2022 Pooling 29 (1) Alberta Milk may operate one or more producer payment pools for the purpose of sharing milk revenue derived from the sale of milk in Alberta by producers to processors, and may make directives and administrative orders respecting pricing and payment mechanisms for the purposes of the pools. (2) If milk is rejected pursuant to the Dairy Industry Act , Alberta Milk must use money collected for grade price adjustments under this Regulation to (a) pay producers whose milk yielded a negative inhibitor test result, and (b) pay milk transportation compensation claims in accordance with directives and administrative orders of Alberta Milk for shipments of milk rejected at a dairy plant. (3) Any money remaining under subsection (2) after making payments under subsection (2)(a) and (b) must be paid as set out in a directive or administrative order of Alberta Milk. (4) If in a month payments under subsection (2)(a) and (b) are greater than the money collected that month for grade and price adjustments, the payments must be made first from that money and the balance of the payments must be made from the producer payment pool operated under this section. (5) Subject to any information access requirements established by the Canadian Milk Supply Management Committee, Alberta Milk may, in a manner that Alberta Milk considers to be appropriate, publish monthly the results of each producer payment pool showing how payment to producers was determined. (6) Alberta Milk may, in conjunction with the producer payment pools operated by Alberta Milk under this section (a) set out all amounts payable among processors, producers and Alberta Milk under this Regulation and the Dairy Industry Act , and (b) direct processors to pay the net amounts determined by Alberta Milk to be owing, and on such setting out and direction the processors, producers and Alberta Milk must pay the net amounts so determined and are relieved from payment of the constituent obligations included in determining the net amounts owing. (7) Repealed AR 58/2003 s7. (8) Alberta Milk may deduct an amount from the pool for expenses with respect to the operation of the pool. (9) Alberta Milk may deduct service charges and levies from producers, including but not restricted to inspection costs, transportation, testing and grading costs and other costs required to ensure the proper operation of the plan, as set out in a directive or administrative order of Alberta Milk. AR 151/2002 s29;58/2003;34/2019;210/2022;256/2025 Testing 30 (1) A producer’s milk that is transferred from the producer’s bulk milk tank to a milk transport vehicle is to be tested in accordance with the directives and administrative orders of Alberta Milk to determine if the milk meets milk quality standards. (2) When determining if a producer’s milk meets milk quality standards, Alberta Milk must only use results of tests carried out by an analyst at an approved laboratory of the following samples of a producer’s raw milk: (a) samples taken by a bulk milk grader under section 40 of the Dairy Industry Regulation (AR 139/99) and delivered under subsection (6) of that section; (b) samples taken by the Director or an inspector under section 8(2) of the Dairy Industry Act . (3) Alberta Milk may waive test results referred to in subsection (2) if Alberta Milk is satisfied that the test results are not representative of the producer’s milk, considering any factors Alberta Milk reasonably considers relevant, including the following: (a) public interest in a good quality milk supply; (b) reasonable requirements of manufacturers and processors; (c) effects of the contravention on other milk producers; (d) any special circumstances of the contravention or the producer; (e) any measures taken by the producer to prevent further contraventions. AR 151/2002 s30;152/2005;125/2008;124/2013;171/2016; 34/2019;210/2022 Contraventions 30.1 A producer commits one or more contraventions as set out in the directives and administrative orders of Alberta Milk when the producer produces milk that does not meet one or more milk quality standards. AR 152/2005 s11;125/2008;34/2019;210/2022 30.11 Repealed AR 210/2022 s12. 30.12 Repealed AR 210/2022 s12. Milk grade 30.2 Alberta Milk determines a producer’s milk grade by the number of the producer’s contraventions in accordance with the directives and administrative orders of Alberta Milk. AR 152/2005 s11;125/2008;34/2019;210/2022 30.3 Repealed AR 210/2022 s12. Reduction of amount payable 31 (1) Alberta Milk may reduce the amount payable to a producer for milk based on its grade in accordance with the directives and administrative orders of Alberta Milk. (2) Alberta Milk may waive or reduce a price reduction under subsection (1) if it is satisfied that it is appropriate to do so, considering any factors Alberta Milk reasonably considers relevant, including the following: (a) public interest in a good quality milk supply; (b) reasonable requirements of manufacturers and processors; (c) effects of the contravention on other milk producers; (d) any special circumstances of the contravention or the producer; (e) any measures taken or promised by the producer to prevent further contraventions. AR 151/2002 s31;58/2003;152/2005;164/2007;125/2008; 34/2019;210/2022 Inhibitors, drug residue ramifications 32 (1) A processor that uses any shipment of milk from a producer that is found, when tested in accordance with the Dairy Industry Regulation (AR 139/99), to contain an inhibitor or a drug residue must pay to Alberta Milk the gross producer return in respect of that shipment on or before the 15th day after the end of the month in which the shipment was delivered. (2) If a shipment of milk is rejected by a processor because of a positive inhibitor or drug residue test conducted in accordance with the Dairy Industry Regulation (AR 139/99) on a sample taken from the shipment at the dairy plant, Alberta Milk, on behalf of the processor, may ensure that the gross producer returns of the producers whose milk in the shipment yielded negative drug residue tests are not adjusted because of the positive inhibitor or drug residue test results for the shipment. (3) Notwithstanding subsection (2), if none of the producer samples in a shipment of milk rejected under subsection (2) test positive in an inhibitor or drug residue test conducted in accordance with the Dairy Industry Regulation (AR 139/99), the processor is liable to pay producers for the milk. (4) If a processor rejects milk for the presence of inhibitors or drug residues and the presence of inhibitors or drug residues is confirmed by a test in an approved laboratory, the processor is not liable to pay the producers for the milk and the producers whose milk that forms part of the rejected milk and did not test positive for inhibitors or drug residues must be paid for that milk pursuant to section 29(2). (5) A processor shall not pay a producer in respect of milk that does not meet the requirements of Schedule 2 of the Dairy Industry Regulation (AR 139/99) with respect to inhibitors and drug residues. AR 151/2002 s32;256/2025 Division 3 Reports, Payments Information to be provided 33 (1) A producer or processor must provide information that Alberta Milk requires for the purposes of this Regulation in the form and at the times required by Alberta Milk. (2) Alberta Milk must, on or before the 13th day of each month, notify each processor with respect to regulated product delivered in the previous month of (a) the prices for milk, (b) the amount of milk in each class, and (c) the totals of the amounts computed under section 37. AR 151/2002 s33;58/2003;34/2019 Monthly report 34 (1) A processor must, on or before the 8th day of each month furnish Alberta Milk with a report of the following for the preceding month in a form satisfactory to Alberta Milk: (a) the total regulated product; (b) the source of the milk; (c) the volume used in each class of milk; (d) the kilograms of components in each class of milk; (e) the volume of any rejected regulated product; (f) the amount and package size of each milk product or dairy product; (g) the production of special classes of milk. (h) repealed AR 58/2003 s10. (2) The report must be accompanied by an itemized invoice for any costs incurred by the processor in respect of matters referred to in section 25 for the preceding month. AR 151/2002 s34;58/2003;256/2025 Payment to producers 35 (1) Subject to subsection (2) and any deductions or adjustments permitted by this Regulation, a processor or Alberta Milk on behalf of processors, must make payment for all milk delivered to them from a producer at not less than the prices set out in the directives and administrative orders of Alberta Milk. (2) Repealed AR 58/2003 s11. (3) Despite subsection (1), if Alberta Milk accepts money for payment to producers on behalf of processors, processors must pay Alberta Milk the full amount for milk delivered to them, without any deductions. (4) When a payment is made by a processor to Alberta Milk pursuant to subsection (3) Alberta Milk assumes the liability to pay to the producers on behalf of the processor the money it received, subject to the pooling, deductions and adjustments provided for by this Regulation. AR 151/2002 s35;285/2002;58/2003;254/2007;125/2008 Payments 36 (1) In managing the pool Alberta Milk may, on behalf of processors, pay each producer directed to deliver milk to a processor for milk delivered based on the amount of each class of milk delivered and the price in accordance with section 28. (2) In managing the pool Alberta Milk may, on behalf of processors, pay each producer for milk delivered the same price for the milk calculated on the same basis. (3) Subject to subsection (7), in managing the pool Alberta Milk may, on behalf of processors, make an interim or advance payment of at least 50% of the payment under subsection (1) on or before the first day after the end of each month to a producer for milk delivered to a dairy plant from the producer during the previous month. (4) Subject to subsection (7), if Alberta Milk is paying producers on behalf of processors, a processor must make payment to Alberta Milk for pooling purposes (a) for the first 15 days of milk receipts 4 banking days before the beginning of each month, and (b) for a final payment on or before the 15th of the month following receipt of milk. (5) Subject to subsection (7), Alberta Milk may, by directive or administrative order, require a processor to provide security satisfactory to Alberta Milk. (6) Alberta Milk is authorized to take legal action to collect money owing to producers for regulated product. (7) Subsections (3), (4) and (5) are subject to any agreement entered into pursuant to the Alberta Milk Negotiation and Arbitration Regulation . (8) Any money accepted by Alberta Milk from processors for payment to producers on behalf of processors pursuant to subsection (4) must be paid to producers, subject to the pooling, deductions and adjustments provided for by this Regulation. AR 151/2002 s36;285/2002 Processor payment adjustment 37 Subject to any agreement entered into pursuant to the Alberta Milk Negotiation and Arbitration Regulation , if a processor is required by Alberta Milk to pay a producer more or less than the total price obtained by the processor for the milk marketed by the processor, as calculated pursuant to directives and administrative orders referred to in section 35, (a) on or before the 15th day after the end of the month during which the milk was delivered, that processor must pay to Alberta Milk the amount by which the price obtained for the milk marketed by the licensee is greater than the amount that the processor must pay to producers pursuant to sections 28 and 35, and (b) on or before the 17th day after the end of the month during which the milk was delivered, Alberta Milk must pay to every processor the amount by which the price obtained for the milk marketed by the licensee is less than the amount that the processor must pay to a producer pursuant to sections 28 and 35. AR 151/2002 s37;210/2022 Payment statement 38 A producer’s payment statement must include any information required by the directives and administrative orders of Alberta Milk. AR 151/2002 s38;34/2019;210/2022 Adjustments 39 If in the process of verification of receipts or payments of a processor Alberta Milk discovers any error resulting in money due (a) to Alberta Milk from a processor, (b) to a processor from Alberta Milk, or (c) to a producer from a processor, Alberta Milk must promptly notify the processor of any amount due, and payment must be made on or before the next due date for making a payment into or out of the pool under section 29 as determined pursuant to section 37. Division 4 Variation in Authorized Marketing 40 and 41 Repealed AR 152/2005 s13. Division 5 Prohibitions Purchasing below minimum price 42 (1) A processor shall not purchase regulated product for an amount that is less than the minimum price that is established by Alberta Milk. (2) Repealed AR 58/2003 s14. AR 151/2002 s42;58/2003;254/2007;125/2008 Processed milk prohibition 43 A person shall not market any dairy product or agricultural product unless it falls within a class or sub‑class described in section 27. AR 151/2002 s43;58/2003 Processed milk marketing prohibition 43.1 (1) A processor shall not market a dairy product set out in column 1 of the table in the Schedule if it does not meet the content requirements set out in column 2 of the table for that product. (2) A processor shall not market a dairy product that is not set out in column 1 of the table in the Schedule if the milk fat and milk solids-not-fat content of the product is not as described on the container in which the product is being marketed by the processor. AR 152/2005 s14 Substance removal prohibition 44 During or after the production or manufacture of fluid milk, no person shall, without the prior approval of Alberta Milk, directly or indirectly or through another person, remove any substance from fluid milk, except milk fat or water. AR 151/2002 s44;125/2008 45 Repealed AR 256/2025 s8. Licence required to market 46 Subject to the Plan, no person shall market (a) regulated product produced in Alberta unless it is produced under a producer licence, or (b) a dairy product processed in Alberta unless it is processed under a processor licence. AR 151/2002 s46;210/2022 Licence required 47 (1) No person shall produce regulated product unless the person holds a producer licence. (2) No person shall process regulated product or agricultural product unless the person holds a processor licence. Limit on quota holders 47.1 No producer shall hold a continuous daily quota greater than 2% of the provincial entitlement. AR 210/2022 s16 Part 3 Expiry and Coming into Force Expiry 48 For the purpose of ensuring that this Regulation is reviewed for ongoing relevancy and necessity, with the option that it may be repassed in its present or an amended form following a review, this Regulation expires on February 28, 2031. AR 151/2002 s48;29/2008;125/2008;124/2013;34/2019;3/2024; 256/2025 Coming into force 49 This Regulation comes into force on the coming into force of the Dairy Industry Omnibus Act, 2002 . Schedule Regulated Product Requirements sub‑class 1a (a) chocolate milk fluid milk that contains not less than 3.25% and not more than 3.60% milk fat, and not less than 8.25% milk solids‑not‑fat, to which a chocolate flavour has been added (b) chocolate partly skimmed 1% milk fluid milk that contains not less than 1.00% and not more than 1.50% milk fat and not less than 8.25% milk solids‑not‑fat, to which a chocolate flavour has been added (c) chocolate partly skimmed 2% milk fluid milk that contains not less than 2.00% and not more than 2.50% milk fat and not less than 8.25% milk solids‑not‑fat, to which a chocolate flavour has been added (d) flavoured milk standard milk, partly skimmed 2% milk, partly skimmed 1% milk or skim milk to which a flavour has been added (e) partly skimmed milk fluid milk that contains less than 3.25% milk fat and not less than 8.25% solids-not-fat (f) 1% partly skimmed milk fluid milk that contains not less than 1.00% and not more than 1.50% milk fat and not less than 8.25% milk solids‑not‑fat (g) 2% partly skimmed milk fluid milk that contains not less than 2.00% and not more than 2.50% milk fat and not less than 8.25% milk solids‑not‑fat (h) skim milk fluid milk that contains not more than 0.10% milk fat and not less than 8.50% milk solids‑not‑fat (i) standard milk fluid milk that contains not less than 3.25% milk fat and not more than 3.60% milk fat and not less than 8.25% milk solids‑not‑fat (j) buttermilk fluid milk that contains not less than 8.25% milk solids‑not‑fat and to which lactic acid producing bacteria or similar culture has been added (k) eggnog fluid milk to which has been added flavouring ingredients and sweeteners plus emulsifiers or stabilizers sub-class 1(b)(i) (l) cream fluid milk, whether flavoured or not, that contains not less than 5.00% milk fat (m) 6% cream fluid milk that contains not less than 6.00% milk fat (n) 10% cream fluid milk that contains not less than 10.00% milk fat and not more than 10.50% milk fat (o) 18% cream fluid milk that contains not less than 18.00% milk fat (p) whipping cream fluid milk that contains not less than 32.00% milk fat (q) heavy cream fluid milk that contains not less than 40.00% milk fat and that may have sugar added AR 152/2005 s15