[Federal Register Volume 59, Number 6 (Monday, January 10, 1994)]
[Rules and Regulations]
[Pages 1270-1273]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-429]
[[Page Unknown]]
[Federal Register: January 10, 1994]
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DEPARTMENT OF AGRICULTURE
7 CFR Parts 932 and 944
[Docket Nos. FV93-932-1FIR and FV93-944-1FIR]
Olives Grown in California and Imported Olives; Finalize the
Establishment of Limited Use Olive Requirements During the 1993-94 Crop
Year
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: The Department of Agriculture (Department) is adopting as a
final rule, without change, the provisions of an interim final rule
that authorizes the use of smaller sized olives in the production of
limited use styles for California olives. This rule is effective during
the 1993-94 crop year and establishes minimum grade and size
requirements for such olives in the order's rules and regulations. This
final rule also adopts, without change, the provisions of an interim
final rule that authorizes the importation of certain bulk olives into
the United States to be used in the production of limited use styles of
olives such as wedges, halves, slices, or segments. This action is
intended to allow more olives into fresh market channels and is
consistent with current market requirements. This action also updates
the Federal-State inspection office address list contained in the
import regulation.
EFFECTIVE DATE: February 9, 1994.
FOR FURTHER INFORMATION CONTACT: Caroline C. Thorpe, Marketing Order
Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O.
Box 96456, room 2525-S, Washington, DC 20090-6456; telephone (202) 720-
5127, or Terry Vawter, California Marketing Field Office, Fruit and
Vegetable division, AMS, USDA, 2202 Monterey Street, suite 102-B,
Fresno, CA 93721, telephone (209) 487-5901.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement and Order No. 932 (7 CFR part 932), as amended, regulating
the handling of olives grown in California, hereinafter referred to as
the order. The order is effective under the Agricultural Marketing
Agreement Act of 1937, as amended (7 U.S.C. 601-674), hereinafter
referred to as the Act.
This rule is also issued under section 8e of the Act, which
requires the Secretary of Agriculture to issue grade, size, quality, or
maturity requirements for certain listed commodities imported into the
United States that are the same as, or comparable to, those imposed
upon the domestic commodities under the Federal marketing orders.
The Department is issuing this rule in conformance with Executive
Order 12866.
This final rule has been reviewed under Executive Order 12778,
Civil Justice Reform. This action is not intended to have retroactive
effect. This rule would not preempt any State or local laws,
regulations, or policies, unless they present an irreconcilable
conflict with this rule.
The Act provides that administrative proceedings must be exhausted
before parties may file suit in court. Under section 608(15)(A) of the
Act, any handler subject to an order may file with the Secretary a
petition stating that the order, any provision of the order, or any
obligation imposed in connection with the order is not in accordance
with law and requesting a modification of the order or to be exempted
therefrom. A handler is afforded the opportunity for a hearing on the
petition. After the hearing the Secretary would rule on the petition.
The Act provides that the district court of the United States in any
district in which the handler is an inhabitant, or has his or her
principal place of business, has jurisdiction in equity to review the
Secretary's ruling on the petition, provided a bill in equity is filed
not later than 20 days after date of the entry of the ruling.
There are no administrative procedures which must be exhausted
prior to any judicial challenge to the provisions of import regulations
issued under section 8e of the Act.
Pursuant to the requirements set forth in the Regulatory
Flexibility Act (RFA), the Administrator of the Agricultural Marketing
Service (AMS) has considered the economic impact of this action on
small entities.
The purpose of the RFA is to fit regulatory actions to the scale of
business subject to such actions in order that small businesses will
not be unduly or disproportionately burdened. Marketing orders issued
pursuant to the Act, and rules issued thereunder, are unique in that
they are brought about through group action of essentially small
entities acting on their own behalf. Thus, both statutes have small
entity orientation and compatibility.
There are 5 handlers of California olives that will be subject to
regulation under the order during the current season, and there are
about 1,350 olive producers in California. There are approximately 25
importers of olives subject to the olive import regulation. Small
agricultural producers have been defined by the Small Business
Administration [13 CFR Sec. 121.601] as those whose annual receipts are
less than $500,000, and small agricultural service firms, have been
defined by the Small Business Administration as those having annual
receipts of less than $3,500,000. None of the domestic olive handlers
may be classified as small entities. The majority of olive producers
and importers may be classified as small entities.
This rule finalizes an interim final rule that establishes grade
and size requirements for olives grown in California, which are
authorized for limited use styles. The interim final rule was published
in the September 17, 1993, Federal Register [58 FR 48592], and provided
30 days to interested persons to file comments. No comments were
received.
This rule also finalizes an interim final rule that authorizes the
importation of smaller sized olives for limited uses. The interim final
rule was published in the September 17, 1993, Federal Register [58 FR
48595], and provided 30 days for interested persons to file comments.
No comments were received.
Nearly all of the olives grown in the United States are produced in
California. The growing areas are scattered throughout California with
most of the commercial production coming from inland valleys. In 1990,
about 77 percent of the production came from the San Joaquin Valley and
23 percent from the Sacramento Valley. California olives are primarily
used for canned ripe whole and whole pitted olives which are eaten out
of hand as hors d'oeuvres or used as an ingredient in cooking and in
salads. The canned ripe olive market is essentially a domestic market.
Very few shipments of California olives are exported.
Olive production has fluctuated from a low of 24,200 tons during
the 1972-73 crop year to a high of 168,500 tons during the 1992-93 crop
year. The California Olive Committee (committee) indicated that 1991-92
production totalled about 63,260 tons. The various varieties of olives
produced in California have alternate bearing tendencies with high
production one year and low the next. Total production for the 1992-93
crop year is approximately 163,500 tons. Total production for the 1993-
94 crop year is estimated to be 110,000 tons. However, based on past
production and marketing experience, the committee believes that
handlers will need smaller sized olives during the 1993-94 crop year to
meet market requirements for limited use styles of canned olives for
the 1993-94 year. Absent this action, olives which are smaller than
those authorized for whole and whole pitted canning uses would have to
be disposed of by handlers into non-canning uses such as crushing into
oil.
Paragraph (a)(3) of Sec. 932.52 of the order provides that
processed olives smaller than the sizes prescribed for whole and whole
pitted styles may be used for limited uses if recommended by the
committee and approved by the Secretary. Until October 1, 1991,
paragraph (a)(3) also prescribed minimum sizes, by variety group, which
could be authorized for use in the production of limited use styles by
the Secretary.
Effective October 1, 1991, certain non-canning size disposition
requirements specified in Sec. 932.51(a)(3) and minimum sizes
authorized for limited use specified in Sec. 932.52(a)(3) of the
marketing order were suspended. The committee may now recommend the use
of olives for limited uses that are smaller than those previously
permitted under the order. Minimum size and grade requirements may be
recommended annually by the committee and approved by the Secretary.
The sizes authorized herein are the same as those established for the
1992-93 crop year. The minimum sizes which could previously be
authorized for limited uses were established in a 1971 amendment to the
marketing order. Olives smaller than the prescribed minimum sizes which
could be authorized for limited uses had to be disposed of through less
profitable non-canning uses such as crushing for oil. Returns to
producers are lower on smaller fruit used for such purposes. The use of
smaller sized olives for limited use styles has been authorized in all
but two crop years since the order was instituted in 1965.
Since the 1971 amendment, there have been substantial changes
within the olive industry. In spite of the annual limited use
authorization, in recent years the industry has not been able to meet
market needs for its products, especially the limited use styles used
primarily by the food service industry. The demand for processed olives
and for limited use styles is expected to continue to increase. At the
same time, the industry has not been able to increase production to
meet market needs for canned ripe olives.
The committee conducted a study during the 1990-91 crop year to
determine the feasibility of utilizing smaller sized olives in the
production of limited use styles and to determine which sizes could be
efficiently processed into such styles. All olive handlers within the
industry participated in the study. All handlers reported that smaller
sizes can be efficiently processed into limited use styles. Advanced
technology in the form of better processing equipment is currently
available. The new technology allows handlers to process smaller olives
into limited use styles more efficiently than was possible in the past.
This action will help growers and handlers to meet the growing
market requirements for limited use style olives based upon current
conditions. The size requirements allow the use of sizes which would
otherwise have to be disposed of for non-canning use. In turn, growers
should receive a larger return from such olives.
By a mail ballot vote ending June 15, 1993, the committee
unanimously recommended establishment of grade and size regulations
during the 1993-94 crop year pursuant to paragraph (a)(3) of
Sec. 932.52 of the order. The grade requirements are the same as
established in recent seasons. The specific sizes for the variety
groups are the minimum sizes which are deemed desirable for use in the
production of limited use styles at this time. As in past years,
permitting the use of the smaller olives in the production of limited
use styles allowed handlers to take advantage of the strong market for
halved, segmented, sliced, and chopped canned ripe olives. Handlers
will be able to market more olives than would be permitted in the
absence of this relaxation in size requirements. This additional
opportunity is provided to maximize the use of the available olive
supplies and facilitate market expansion, thereby increasing returns to
growers. In the absence of this action, the smaller fruit would have to
be disposed of for less profitable, non-canning uses.
Section 8(e) of the Act requires that whenever grade, size,
quality, or maturity requirements are in effect for olives under a
domestic marketing order, imported olives must meet the same or
comparable requirements. This action allows smaller olives for limited
use styles under the marketing order. Therefore, a corresponding change
is needed in the olive import regulation.
Canned ripe olives, and bulk olives for processing into canned ripe
olives, imported into the United States must meet certain minimum grade
and size requirements specified in Olive Regulation 1 (7 CFR 944.401).
All canned ripe olives are required to be inspected and certified prior
to importation (release from custody of the United States Custom
Service), and all bulk olives for processing into canned ripe olives
must be inspected and certified prior to canning. ``Canned ripe
olives'' means olives in hermetically sealed containers and heat
sterilized under pressure, of two distinct types, ``ripe'' and ``green-
ripe'', as defined in the current U.S. Standards for Grades of Canned
Ripe Olives (7 CFR 52.3751-52.3764). The term does not include Spanish-
style green olives. Any lot of olives failing to meet the import
requirements may be exported or disposed of under the supervision of
the Processed Products Branch of the Fruit and Vegetable Division, with
the costs of certifying the disposal of the olives borne by the
importer. Any person may import up to 100 pounds (drained weight) of
canned ripe olives or bulk olives exempt from these grade and size
requirements.
This final rule modifies paragraph (b)(12) of the olive import
regulation (7 CFR 944.401 (b)(12)) to authorize the importation of bulk
olives which do not meet the minimum size requirements established for
olives for whole and whole pitted uses to be used in the production of
limited use styles for the 1993-94 season which begins August 1, 1993.
This rule also establishes size regulations for such olives in
paragraph (b)(12).
Import regulations issued under the Act are based on regulations
established under Federal marketing orders to regulate domestically
produced products. The grade and size requirements contained in the
olive import regulation are based on those in effect for olives grown
in California under Marketing Order No. 932. This action reflects a
recommendation by the committee to change the requirements for olives
for limited use styles grown in California. The committee works with
the Department in administering the marketing order program for
California olives.
Paragraph (a)(3) of Sec. 932.52 of the California olive marketing
order provides that processed olives smaller than the sizes prescribed
for whole and whole pitted styles may be used for limited uses if
recommended by the committee and approved by the Secretary. The sizes
are specified in terms of minimum weights for individual olives in
various size categories by variety groups. This is to recognize the
different sizing characteristics of the individual varieties and types
of California olives. Olives used in limited use styles are too small
to be desirable for use as whole or whole pitted canned olives because
their flesh-to-pit ratio is too low. However, they are satisfactory for
use in the production of limited use styles.
The committee unanimously recommended to authorize establishment of
minimum sizes for use in the production of limited use styles during
the 1993-94 season. These minimum sizes would be the same as those
established for the 1992-93 season. The sizes are specified in terms of
minimum weights for individual olives in various variety groups and are
the same for both domestic and imported olives. An extra category is
continued in the import regulation to apply comparable requirements for
varieties not grown domestically. The minimum sizes are as follows:
Variety Group I, except the Ascolano, Barouni, or St. Agostino
varieties--1/105 pound
Variety Group I of the Ascolano, Barouni, or St. Agostino
varieties--1/180 pound
Variety Group 2, except the Obliza variety--1/205 pound
Variety Group 2 of the Obliza variety--1/180 pound
Olives not identifiable as to variety or variety group--1/205 pound
Each of the categories includes a 35 percent tolerance for olives
weighing less than the specified minimum size.
This action is necessary because section 8e of the Act provides
that when domestically produced olives are regulated under a Federal
marketing order, imported olives must meet the same or comparable
grade, size, quality, and maturity requirements. Thus, authorizing the
use of smaller sized California olives in the production of limited use
styles and establishing size regulations for such olives requires that
the same or comparable regulations be issued for imported bulk olives.
Permitting the use of smaller olives in the production of limited
use styles will allow importers to take better advantage of the strong
market for halved, segmented, sliced, and chopped canned ripe olives.
Importers will be able to import and market more olives than would be
permitted in the absence of this relaxation in size requirements. This
additional opportunity is provided to maximize the use of the available
olive supply and facilitate market expansion. In the absence of this
action, the smaller fruit could not be imported for limited uses, and
would have to be disposed of through less profitable, non-canning uses
under the supervision of the inspection service or exported.
A change in paragraph (c) to be implemented indefinitely, updates
the list of regional inspection offices listed in the import
regulation. The change reflects consolidation of the Southeastern and
Central offices into the Eastern Regional Office and the relocation of
the Western Regional Office.
Based on the above, the Administrator of the AMS has determined
that this action will not have a significant economic impact on a
substantial number of small entities.
In accordance with section 8e of the Act, the U.S. Trade
Representative has concurred with the issuance of this final rule.
After consideration of all relevant matter presented, the
information and recommendations submitted by the committee, and other
information, it is found that finalizing the interim final rules,
without change, as published in the Federal Register [FR 58 48592 and
48595], will tend to effectuate the declared policy of the Act.
List of Subjects
7 CFR Part 932
Marketing agreements, Olives, Reporting and recordkeeping
requirements.
List of Subjects
7 CFR Part 944
Avocados, Food grades and standards, Grapefruit, Grapes, Imports,
Kiwifruit, Limes, Olives, and Oranges.
For the reasons set forth in the preamble 7 CFR parts 932 and 944
are amended as follows:
1. The authority citation for 7 CFR Parts 932 and 944 are revised
to read as follows:
Authority: 7 U.S.C. 601-674.
PART 932--OLIVES GROWN IN CALIFORNIA
2. Accordingly, the interim final rule revising the provisions of
Sec. 932.153, which was published in the September 17, 1993, Federal
Register [58 FR 48592], is adopted as a final rule without change.
PART 944--FRUITS; IMPORT REGULATIONS
3. Accordingly, the interim final rule amending the provisions of
Sec. 944.401, which was published in the September 17, 1993, Federal
Register [58 FR 48595], is adopted as a final rule without change.
Dated: January 3, 1994.
Robert C. Keeney,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-429 Filed 1-7-94; 8:45 am]
BILLING CODE 3410-02-P
