{
  "url": "https://openlegislation.uk/scottish-milk-marketing-scheme-consolidation-approval-order-1989/schedule-1/paragraph-32",
  "json_url": "https://openlegislation.uk/scottish-milk-marketing-scheme-consolidation-approval-order-1989/schedule-1/paragraph-32.json",
  "legislation": "uksi/1989/1806",
  "legislation_title": "The Scottish Milk Marketing Scheme (Consolidation) Approval Order 1989",
  "legislation_url": "https://openlegislation.uk/scottish-milk-marketing-scheme-consolidation-approval-order-1989",
  "path": "schedule/1/paragraph/32",
  "kind": "paragraph",
  "number": "32",
  "heading": "Exemptions",
  "text": "(1) The Board shall have power at any time to exempt from any or all of the provisions of the Scheme producers and sales of such classes or descriptions as they may determine, and from time to time to withdraw or vary exemptions granted under this subsection.\n(2) The provisions of paragraphs (c) and (d) of section 15, subsection (1) of section 17, section 20, section 22, subsections (4), (6) and (9) of section 26 and section 29 shall not apply—\n(a) to milk which a registered producer withholds from the Board—\n(i) for export, in unprocessed or processed form, outside the United Kingdom; or\n(ii) for conversion into butter or skimmed milk powder to be sold to the intervention agency; or\n(iii) for sale to an exempt producer;\n(b) to milk produced by an exempt producer.\n(3) A registered producer may act jointly with other registered producers or through intermediaries or with and through both for the purpose of subsection (2)(a)(i) but a registered producer who withholds milk for those purposes shall give at least 2 months' prior notice in writing to the Minister and to the Board stating—\n(a) the precise or minimum period during which he intends to withhold milk;\n(b) whether all milk to be sold by him will be withheld or the quantity of milk which he intends to withhold where this is less than the total amount which he is to sell; and\n(c) whether the milk which is to be marketed outside the United Kingdom is to be marketed in unprocessed or processed form.\n(4) A registered producer may act jointly with other registered producers or through intermediaries or with and through both for the purposes of subsection (2)(a)(ii) but a registered producer who withholds milk for those purposes shall give at least one month’s prior notice in writing to the Minister and to the Board stating—\n(a) the precise or likely period during which he intends to withhold milk; and\n(b) whether all milk to be sold by him will be withheld or the quantity of milk which he intends to withhold where this is less than the total amount which he is to sell.\n(5) Where a registered producer has given the notice referred to in subsection (3)(a) or (4)(a) above, the Board shall not be bound to buy from him any milk to which the notice relates until the expiry of the period specified therein; and where a registered producer does not specify the precise period during which he intends to withhold milk, the Board shall not be bound to resume the purchase of such milk from him until the expiry of 2 months after the Board shall have received notice in writing of his intention to resume sales of such milk to the Board.\n(6) A registered producer shall not be entitled to withhold milk under subsection (2)(a)(ii) unless—\n(a) for a period of 5 consecutive months in the period of 12 consecutive months immediately preceding the date from which he intends to withhold milk the price paid by the Board to him each month shall have been less than either—\n(i) the intervention price equivalent of milk for that month calculated pursuant to regulation 5 of the Milk Marketing Boards (Special Conditions) Regulations 1981; or\n(ii) an intervention price equivalent of milk for that month calculated as aforesaid but by the registered producer using the margins and conversion factors applicable to the milk produced by him that month, provided that he is able to satisfy the qualified person specified in the said regulation 5 as to the validity of his calculation; or\n(b) during the period of 12 consecutive months immediately preceding the date from which he intends to withhold milk the average price paid by the Board to him shall have been less than the average intervention price equivalent of milk over the same period.\n(7) A registered producer may give notice under subsection (4) of his intention to withhold milk under subsection (2)(a)(ii) upon receipt by him of the first payment for one month’s supply of milk establishing that the price paid by the Board is less than the intervention price equivalent of milk for that month.\n(8) A registered producer shall not be entitled to withhold milk under subsection (2)(a)(ii) for more than a period of 6 consecutive months beyond the period of 3 consecutive months during which the price paid by the Board to registered producers shall have exceeded the intervention price equivalent of milk.\n(9) A registered producer who withholds milk for the purposes of subsection (2)(a)(iii) shall give not less than 60 days prior notice to the Minister and to the Board in writing of his intention to do so.\n(10) Every such registered producer as referred to in subsection (9) shall keep such books and records relating to the sale of the said milk as the Board shall reasonably require and shall make such returns and give such information as the Board shall reasonably require to enable the Board, and if he so desires, the Minister, to be satisfied that the milk has been sold to an exempt producer, and shall produce such books and records to and give such information to any person authorised in writing by the Board or Minister to inspect them.\n(11) Any registered producer who intends to sell milk direct to the final consumer may send to the Board a declaration that from the date specified therein, being a date not less than 2 months later than the month in which the Board has received the declaration, and for a period specified therein, being a period of not less than 5 years from the date of the commencement of the exemption, he wishes to be exempted from his obligation to sell milk to the Board and to forego his right to require the Board to buy milk from him.\n(12) Subject to the following subsections, the Board shall issue a certificate of exemption to any registered producer from whom such a declaration as referred to in subsection (11) has been received and who—\n(a) produces information showing that during the 3 consecutive years immediately preceding the date of lodging his declaration with the Board the average annual production of milk from all the cows in his possession has not exceeded 100,000 kilograms; and\n(b) intimates that he intends to sell not less than 75% of the annual production of milk from all the cows in his possession directly to the final consumer in the form of liquid milk.\n(13) If the Board contests the right of any registered producer to become an exempt producer on the grounds that he is unable to fulfil the requirements of subsections (12) and (16)(c), they shall as soon as practicable and in any case not later than 21 days after receipt of the declaration send it with all material documents to the Minister, and shall give to the registered producer written notice of their decision, of the reasons for their decision, and of their having sent his declaration to the Minister.\n(14) The Minister shall on receipt of the declaration and documents from the Board invite the registered producer and the Board to make representations to him concerning the exemption and shall consider the exemption having regard to any such representations received by him within the time specified by him. The provisions of subsections (11) and (12) shall apply to the Minister’s consideration of the exemption as if the reference in those subsections to the Board were references to the Minister.\n(15) If the Minister decides the exemption in favour of the registered producer, or if the Minister within 60 days of the receipt of the declaration by the Board has not sent to the registered producer written notice of his refusal of the exemption with reasons for his decision when he shall be deemed to have acceded to the exemption, the Board shall forthwith issue a certificate of exemption to the registered producer.\n(16) Every certificate of exemption—\n(a) shall state the period of its validity;\n(b) shall record the average annual production from cows in the possession of the exempt producer during the 3 calendar years immediately preceding the lodging of his application with the Board; and\n(c) shall be issued subject to the following conditions:—\n(i) that the exempt producer shall sell not less than 75% of the annual production of milk from the cows in his possession directly to the final consumer in the form of liquid milk;\n(ii) that the exempt producer shall not buy from other registered producers a quantity of milk exceeding in any year 25% of the production of milk in that year from the cows in his possession and shall only sell the milk so bought by him directly to the final consumer in the form of liquid milk;\n(iii) that the total amount of milk in liquid form sold by the exempt producer directly to the final consumer in any calendar year shall not exceed double the average annual production recorded in the certificate of exemption; and\n(iv) that the exempt producer shall keep such books and records relating to his production, purchase and sales of milk as the Board shall reasonably require and shall make such returns and give such information to the Board as the Board shall reasonably require to enable the Board and, if he so desires, the Minister, to be satisfied that the conditions of the certificate of exemption are being complied with, and shall produce such books and records to any person authorised in writing by the Board or the Minister to inspect them.\n(17) A certificate of exemption may be revoked by the Minister, whether or not it was issued by him, upon breach of any of its conditions on the part of the exempt producer.\n(18) For the purposes of this section a registered producer shall be deemed to have cows in his possession if, but only if, they and the buildings in which they are tended or milked are in his exclusive possession; however, if a registered producer satisfies the Minister that it is necessary for the time being for his cows to be tended or milked in buildings which are not in his exclusive possession, he shall for such period as the Minister may determine be deemed for the purposes of this section to have the cows in his possession.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/1989/1806/schedule/1/paragraph/32",
    "retrieved_at": "2026-10-29T15:36:34.590595+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}