(1) To be eligible for a license to engage in the production of milk for manufacturing purposes a person must have his dairy farm in satisfactory compliance with sub-chapter 3 of this chapter. Licensed dairy farms producing milk for manufacturing purposes must be inspected annually to determine eligibility for relicensing.

(2) Each dairy farm producing milk for manufacturing purposes must be inspected by an authorized representative of the department. When evidence indicates that it is advisable to do so, the department will require an examination of the herd by a deputy state veterinarian. If the dairy farm meets the applicable requirements for licensing described in sub-chapter 3 of this chapter as indicated by the official inspection report form, the dairy farm may be licensed as described in (3) . If the dairy producer farm does not meet the requirements for licensing, it must be reinspected within 30 days after the initial inspection. If the farm then meets the requirements for licensing, it may be licensed. If the dairy producer farm does not meet the requirements for licensing, it may not be licensed, and the license must be withheld by the department until such time as the dairy producer farm qualifies for licensing. Each completed official inspection report form may be kept by the department and a copy must be given to the producer.

(3) An authorized agent of the department must indicate that the dairy producer farms meet the requirements of sub-chapter 3 of this chapter as applicable. Dairy producer farm licensing must authorize the sale from that farm of milk for manufacturing purposes that meets the quality standards of sub-chapter 2 of this chapter.