[Federal Register Volume 61, Number 106 (Friday, May 31, 1996)]
[Rules and Regulations]
[Pages 27245-27247]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-13616]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 925
[Docket No. FV95-925-1FIR]
Grapes Grown in a Designated Area of Southeastern California;
Revision of Container Requirements
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: The Department of Agriculture (Department) is adopting as a
final rule, the provisions of an interim final rule with correction
which added two new containers to the list of containers authorized for
use by table grape handlers regulated under the marketing order. This
rule also reduces the minimum net weight of containers of California
table grapes from 22 pounds to 20 pounds and for grapes packed in poly
bags from 20 pounds to 18 pounds. The marketing order regulates the
handling of table grapes grown in a designated area of Southeastern
California. The marketing order is locally administered by the
California Desert Grape Administrative Committee (CDGAC). This rule
allows for more efficient use of containers and helps handlers meet
industry needs.
EFFECTIVE DATE: July 1, 1996.
FOR FURTHER INFORMATION CONTACT: Charles L. Rush, Marketing Order
Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O.
Box 96456, room 2526-S, Washington, DC 20090-6456, telephone (202) 690-
3670; or Rose M. Aguayo, California Marketing Field Office, Marketing
Order Administration Branch, Fruit and Vegetable Division, AMS, USDA,
2202 Monterey Street, Suite 102B, Fresno, California 93721; telephone
(209) 487-5901.
SUPPLEMENTARY INFORMATION: This final rule is issued under Marketing
Order No. 925 [7 CFR Part 925], as amended, regulating the handling of
table grapes grown in a designated area of Southeastern 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.''
The Department of Agriculture (Department) is issuing this final
rule in conformance with Executive Order 12866.
This rule has been reviewed under Executive Order 12778, Civil
Justice Reform. This rule is not intended to have retroactive effect.
This rule will 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 608c(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 request 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 to review the Secretary's
ruling on the petition, provided an action is filed not later than 20
days after the date of the entry of the ruling.
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA), the Agricultural Marketing Service (AMS) has considered the
economic impact of this rule 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 approximately 20 handlers of California table grapes
subject to regulation under the order and approximately 80 table grape
producers in the production area. Small agricultural service firms are
defined by the Small Business Administration (13 CFR 121.601) as those
whose annual receipts are less than $5,000,000, and small agricultural
producers have been defined as those having annual receipts of less
than $500,000. A minority of handlers and producers are classified as
small entities.
This rule finalizes changes in the container requirements under the
marketing order for grapes grown in designated areas of Southeastern
California. This rule also finalizes a reduction in the minimum net
weight of containers of California table grapes from 22 pounds to 20
pounds and for grapes packed in poly bags from 20 pounds to 18 pounds.
These changes were unanimously recommended by the CDGAC.
An interim final rule was issued on March 11, 1996, and published
in the Federal Register (61 FR 11127, March 19, 1996), with an
effective date of March 19, 1996. That rule amended Sec. 925.304 of the
rules and regulations in effect under the order. That rule provided a
30-day comment period which ended April 18, 1996. No comments were
received. A correction document was issued on March 25, 1996, and
published in the Federal Register (61 FR 14013, March 29, 1996). The
document corrected amendatory language number 2 of the interim final
rule.
This action is in accordance with Sec. 925.52(a)(4) of the order.
This section authorizes the Secretary to fix the size, capacity,
weight, dimensions, markings,
[[Page 27246]]
materials, and pack of containers which may be used in the handling of
grapes.
Prior to the effective date of the interim final rule, Sec. 925.304
(b)(2) of the regulations specified that the minimum net weight
requirement for grapes in any container, except for containers
containing grapes packed in sawdust, cork, excelsior, or similar
packing material, or packed in bags or wrapped in plastic or paper, and
experimental containers, be 22 pounds based on the average net weight
of grapes in a representative sample of containers. Containers of
grapes packed in bags or wrapped in plastic or paper prior to being
placed in these containers were required to meet a net weight
requirement of 20 pounds.
Section 925.304 (b)(1) of the regulations specified the dimensions
of six containers that could be used by handlers of table grapes and
authorized the use of other types and sizes of containers on an
experimental basis.
The CDGAC met on November 27, and December 4, 1995, and unanimously
recommended changes in the container requirements. Specifically, the
CDGAC recommended reducing the minimum net weight of containers from 22
to 20 pounds and for containers of grapes wrapped or packed in poly
bags from 20 to 18 pounds, effective April 20, 1996. The CDGAC also
unanimously recommended adding two new containers (38S, 12 x 20 inches)
and (38T, 13\1/8\ x 15\7/8\ inches) to the list of authorized
containers. These changes are intended to improve the quality of grapes
delivered to consumers and reduce handling costs.
The genesis for discussion of revising containers used to pack
grapes began about 6 years ago when the recyclability of packaging
materials became of interest to consumers worldwide and then to
retailers who bore the brunt of consumers' concern. In addition to the
environmental concern expressed by consumers, retailers were concerned
about the increasing costs of disposing of packing and shipping
materials.
Simultaneously, in an effort to differentiate themselves in the
marketplace, many in the retail industry began demanding that grape
growers provide custom packs. One customer wanted only a certain type
of bag, another wanted only 5-kilo bags, another wanted bags with
nothing printed on them, while yet another wanted a special store code.
These kinds of demands from the retail and food service industry
led to a great deal of packaging experimentation within the California
grape industry. It also led to the realization that it had been 25
years since there had been any quantifiable packaging research. The
industry decided to take a critical look at grape packaging and
determine if current practices were getting the product to the retailer
and ultimately the consumer in the best possible condition; and if not,
what changes needed to be made to improve delivery. Toward that end,
the California Table Grape Commission funded a three-year research
project designed to answer a simple question: what types of containers
get grapes to the consumer in the best possible condition?
Grapes are a fragile product. The current method of packing is a
holdover from 25 years ago when grapes were sold at auctions and it was
considered a marketing advantage to overpack the box so that when
buyers looked at the box it was bulging with fruit. Too often though,
what they did not see was the condition of the fruit inside; crushed,
split or falling off the stem. In addition, the standard lug box in use
today was designed to fit railroad cars. Shipping grapes by rail car is
a part of the industry's past.
The study of table grape packaging was conducted by the University
of California at Davis and the University of California at Kearney
Agricultural Center at Parlier. The objective of the study was to
develop knowledge concerning packaging that allows the movement of
table grapes from the field to the consumer in the best possible
condition. At the reduced weight, the damage to the grapes,
particularly in terms of bruising, splitting and shattering, decreases.
Table grapes of most varieties suffered considerable damage when packed
at net weights of 22 or 23 pounds. The damage was reduced considerably
when the pack weights were reduced to 20 to 21 pounds.
Through the research conducted the CDGAC determined that other
container size and net weight options available were not in the best
interest of the industry. Further, wholesalers and retailers support
the recommended changes, and believe it is the best option.
Thus, the CDGAC's recommendation to reduce the minimum net weight
requirements is expected to result in higher quality grapes being
offered to consumers. This should increase satisfaction, strengthen
demand, and improve returns to growers and handlers.
Most grapes packed in California are palletized on 35- x 42-inch or
53- x 42-inch pallets prior to shipment. When received by wholesalers
or retailers, the grapes are unloaded and restacked on 48- x 40-inch
pallets.
Grocery and wholesale warehouse operations use 48- x 40-inch
pallets as the standard pallet for most products. The bulk of product
sold at retail outlets (e.g., cereal, paper products, canned goods,
etc.) are dry goods. These products are generally shipped on 48- x 40-
pallets. Consequently, the distribution channel is set up to
accommodate 48- x 40-inch pallets.
Nonstandard pallets such as those used by grape handlers have to be
disposed of at the receivers' expense. However, with the use of 48- x
40-inch pallets, which can be recycled, there should be a reduction in
expenses associated with pallets. The recycling program allows the
receiver to use the pallet more than once or remove it from the waste
stream to use or sell.
The changes in container requirements are supported by the
California Department of Agriculture, the California Grape and Tree
Fruit League, the California Table Grape Commission, the Food Marketing
Institute, and the National Association of Perishable Agricultural
Receivers. These organizations have all agreed that the reduction in
net weight is necessary to facilitate the implementation of an
industry-wide adoption of the standardized 48- x 40-inch pallet and the
incidence of damage to fruit due to over packing.
Thus, this rule allows the industry to use more efficient
containers and provides handlers with more flexibility in packing table
grapes. Imported table grapes will not be affected by this rule.
Based on the above, the AMS has determined that this action will
not have a significant economic impact on a substantial number of small
entities.
After consideration of all relevant material presented, including
the CDGAC's recommendation, and other available information, it is
found that finalizing the interim final rule, which was published in
the Federal Register (61 FR 11127, March 19, 1996) and corrected in the
Federal Register (61 FR 14013, March 29, 1996) will tend to effectuate
the declared policy of the Act.
List of Subjects in 7 CFR Part 925
Grapes, Marketing agreements, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 925 is
amended as follows:
1. The authority citation for 7 CFR part 925 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
[[Page 27247]]
PART 925--GRAPES GROWN IN A DESIGNATED AREA OF SOUTHEASTERN
CALIFORNIA
Accordingly, the interim final rule amending 7 CFR part 925 which
was published at 61 FR 11127, March 19, 1996, and corrected at 61 FR
14013, March 29, 1996, is adopted as a final rule.
Dated: May 22, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-13616 Filed 5-30-96; 8:45 am]
BILLING CODE 3410-02-P
