National Research, Promotion & Consumer Information Programs (Voluntary)

(SAMPLE INSTRUCTIONAL LETTER)

Annual Certification of Fluid Milk Processor Status

All fluid milk processors must respond to this annual certification request.

The Fluid Milk Promotion Act of 1990 authorized a mandatory 20-cent per hundredweight assessment on all fluid milk products processed and marketed commercially in consumer-type packages in the 48 contiguous States and the District of Columbia. Payment of the assessment is due by the end of the month following the month in which the fluid milk products were marketed. The assessment is paid by those fluid milk processors who process and market more than 3,000,000 pounds of fluid milk products per month, excluding fluid milk products delivered to the place of residence of a consumer, in the 48 contiguous States and the District of Columbia. Processors who process and market below that level, and are not part of a larger legal entity that processes fluid milk in excess of 3.000,000 pounds monthly, do not have to pay the assessment.

Fluid milk processors must certify at the beginning of each Fluid Milk Promotion program fiscal year whether they process and market more or less than 3,000,000 pounds of fluid milk products per month. The National Fluid Milk Processor Promotion Board operates on a calendar year. Therefore, all fluid milk processors must re-certify for the market month of January.

All processors must complete fluid milk pounds on lines 1 through 5 of the enclosed monthly report (form DA-20R). If the amount of total pounds on line 5 is less than 3,000,000 pounds, and the processor is not part of a larger legal entity that processes fluid milk in excess of 3.000,000 pounds monthly, then the processor should write “Not Subject to Assessment” on line 8 and complete the certification section at the bottom of the form. If the amount of total pounds on line 5 is greater than 3,000,000 pounds, then the processor should complete the form and remit the appropriate assessment to the address on the form.

Thank you for your responsiveness in submitting reports and payments. If you have any further questions on the assessment forms, please call Angela Leighty at (301) 656-1551, extension 2303. If you have any questions about the program, call me at the same number.

Sincerely,

/s/

Chief Financial Officer

MilkPEP

7475 Wisconsin Avenue, Suite 600, Bethesda, MD 20814, phone: (301) 656-1551, fax: (301) 656-1771