Processor's license - Distributor's license - Grounds for denial

The milk marketing board may deny an application for a processor's license or a distributor's license if the board determines that: 1. Persons currently licensed by the board in that capacity are supplying an adequate variety and quantity of high-quality milk products and frozen dairy products to retailers and consumers in this state; 2. Deliveries are being made with sufficient regularity and frequency; and 3. The issuance of additional licenses of the type sought will: a. Result in an excess of processing plant capacity; b. Tend to increase to unsatisfactory levels the average unit processing or average unit distribution costs for persons already licensed by the board; or c. Otherwise tend to prevent achievement of the objectives of this chapter.