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A pooling method, whereby, handlers with higher than average utilization pay into and handlers with lower than average utilization receives payment from is called _______

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A pooling method, whereby, handlers with higher than average utilization pay into and handlers with lower than average utilization receives payment from is called _______

(a) Base excess pricing

(b) Louisville takes out and pay back

(c) Individual handler pools

(d) Producer settlement fund

I had been asked this question during an internship interview.

This key question is from Milk Quality Farm topic in chapter Quality parameters of Dairy Engineering

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The correct option is (d) Producer settlement fund

Best explanation: In producers settlement fund, handlers with higher than average utilization pay into and handlers with lower than average utilization receives payment from. It is a kind of pooling method.

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