[Federal Register Volume 61, Number 163 (Wednesday, August 21, 1996)]
[Rules and Regulations]
[Pages 43139-43141]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-21331]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
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Federal Register / Vol. 61, No. 163 / Wednesday, August 21, 1996 /
Rules and Regulations
[[Page 43139]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 906
[Docket No. FV96-906-3IFR]
Oranges and Grapefruit Grown in the Lower Rio Grande Valley in
Texas; Interim Final Rule To Revise Pack and Size Requirements
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim final rule.
-----------------------------------------------------------------------
SUMMARY: This interim final rule revises pack requirements for
grapefruit and certain types of oranges under the marketing order
covering oranges and grapefruit grown in the Lower Rio Grande Valley in
Texas to allow larger sizes of fruit to be marketed in fresh channels.
This rule also reduces current minimum size requirements for Texas
grapefruit. These actions were recommended by the Texas Valley Citrus
Committee (TVCC), the agency responsible for local administration of
the marketing order. These changes will enable the industry to market a
wider range of sizes of citrus fruit in fresh market channels, thereby
meeting consumer demand, increasing sales, and improving returns to
growers.
DATES: Effective on August 22, 1996; comments received by September 20,
1996 will be considered prior to issuance of a final rule.
ADDRESSES: Interested persons are invited to submit written comments
concerning this rule. Comments must be submitted in triplicate to the
Docket Clerk, Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456,
Room 2523-S, Washington, DC 20090-6456, or by facsimile at (202) 720-
5698. Comments should reference this docket number and the date and
page number of this issue of the Federal Register and will be made
available for public inspection in the Office of the Docket Clerk
during regular business hours.
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 Belinda G. Garza, McAllen Marketing Field Office, Marketing
Order Administration Branch, Fruit and Vegetable Division, AMS, USDA,
1331 E. Hackberry Street, McAllen, Texas 78501; telephone (210) 682-
2833. Small businesses may request information on compliance with this
regulation by contacting: Jay Guerber, Marketing Order Administration
Branch, Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, Room
2523-S, Washington, DC 20090-6456; telephone (202) 720-2491, Fax #
(202) 720-5698.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement and Order No. 906 [7 CFR Part 906], as amended, regulating
the handling of oranges and grapefruit grown in the Lower Rio Grande
Valley in Texas, 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 interim
final rule in conformance with Executive Order 12866.
This interim final rule has been reviewed under Executive Order
12988, Civil Justice Reform. This interim final rule is not intended to
have retroactive effect. This interim final 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 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 oranges and grapefruit
subject to regulation under the order and approximately 2,000 orange
and grapefruit 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 majority of Texas citrus handlers and
producers may be classified as small entities.
This interim final rule revises pack requirements for grapefruit
and certain varieties of oranges to allow larger sizes to be marketed
in fresh channels. It also reduces the minimum size requirements in
effect for grapefruit. This rule will enable handlers to market a
broader range of sizes of citrus fruit in fresh market outlets, thereby
meeting consumer demand, increasing fresh fruit sales, and enhancing
returns to handlers and producers.
Therefore, the AMS has determined that this action will not have a
significant economic impact on a substantial number of small entities.
Interested persons are invited to submit information on the regulatory
and informational impacts of this action on small businesses.
This action is in accordance with Sec. 906.40(a) of the order. This
section authorizes the Secretary to limit the
[[Page 43140]]
handling of particular grades, sizes, qualities, maturities, or packs
of any or all varieties of fruit during a specified period or periods.
Currently, minimum grade and size requirements, as well as pack and
container requirements, are in effect for both grapefruit and oranges
throughout the season. Shipments for certain purposes, including
processing, are exempt from these requirements.
The TVCC met on May 29, 1996, and unanimously recommended changes
in current pack and minimum size requirements. The TVCC meets prior to
and during each season to review the handling regulations effective on
a continuous basis for each citrus fruit regulated under the order.
TVCC meetings are open to the public, and interested persons may
express their views at these meetings. The Department reviews TVCC
recommendations and information, as well as information from other
sources, and determines whether modification, suspension, or
termination of the handling regulations would tend to effectuate the
declared policy of the Act.
Revision of Pack Requirements
Pack requirements for oranges and grapefruit are in effect under
Sec. 906.340 of the order's rules and regulations. These requirements
provide, among other things, that oranges and grapefruit be packed in
accordance with certain size designations. These size designations are
defined in terms of minimum and maximum diameters.
Oranges are divided into two categories for the purpose of pack
regulations: (1) Navel, Valencia and similar late-type oranges, and (2)
all other oranges. Navel, Valencia and similar late-type oranges must
be packed in accordance with 13 size designations. The smallest of
these is Size 324, which ranges from 2\1/16\ to 2\8/16\ inches in
diameter. The largest size defined is Size 46, which ranges from 4\3/
16\ to 5 inches in diameter. Oranges other than navel, Valencia and
similar late-type oranges are required to be packed in accordance with
the various pack sizes in section 51.691(c) of the United States
Standards for Grades of Oranges (Texas and States other than Florida,
California, and Arizona), hereinafter referred to as the ``orange
standards.''
The orange standards define seven pack sizes, from Size 324 (2\3/
16\ to 2\8/16\ inches in diameter) to Size 100 (3\7/16\ to 3\13/16\
inches in diameter). To allow for variations incident to proper
packing, a tolerance for undersized and oversized fruit is provided.
The tolerance is in terms of the number of fruit in a sample that may
be off-size--with the actual number increasing as the sample size
increases. Otherwise oversized oranges other than navel, Valencia and
similar late-type oranges would be diverted to exempt outlets, such as
processing.
The TVCC recommended revising the orange pack regulations to allow
all types of oranges to be packed in the full range of sizes--from Size
324 to Size 46. Thus, this rule revises Section 906.340(a)(2)(i)(a),
which specifies pack requirements for oranges other than navel,
Valencia and similar late-type oranges, to define the 13 size
designations authorized for such oranges. The seven smallest sizes are
defined in the same way they are in the orange standards. (The minimum
diameters are \2/16\ inch larger than those specified for navels,
Valencias and similar late-type oranges, while the maximum diameters
are the same.) The six sizes added for these oranges are defined
similarly (that is, the minimum diameters differ, but the maximum
diameters are the same). The differences in the minimum diameters take
into account varietal differences between these two categories of
oranges and current industry practice.
Grapefruit are required to be packed within the diameter limits
specified for the various pack sizes defined in Sec. 51.630(c) of the
United States Standards for Grades of Grapefruit (Texas and States
other than Florida, California, and Arizona), hereinafter referred to
as the grapefruit standards. Exceptions are that the minimum diameter
for pack size 96 grapefruit is 3\9/16\ inches, and for pack size 112
grapefruit, the minimum diameter is 3\5/16\ inches.
The grapefruit standards define eight pack sizes. The smallest is
Size 125/126, which ranges from a minimum of 3 inches to a maximum of
3\8/16\ inches in diameter. The largest is Size 46 which ranges from
4\5/16\ to 5 inches in diameter. This rule adds a new, larger Size 36
grapefruit, which ranges in size from 4\15/16\ to 5\9/16\ inches in
diameter.
Improved irrigation methods, technological advances, and improved
cultural practices have resulted in the Texas citrus industry growing
larger, good quality fruit. Current pack regulations preclude this
fruit from being marketed in fresh channels (with the exception of
small amounts allowed to exceed the maximum specified diameters), and
it is generally diverted to the processing market. The processing
market is currently in an oversupply situation and yields low returns
to growers. Providing for additional supplies (an estimated 5 to 10
percent) to be marketed fresh should, therefore, enhance grower
returns.
Additionally, the TVCC indicates that there has been increased
demand from consumers in recent years for a broader range of sizes of
oranges and grapefruit. Providing that these larger sizes may be
shipped will provide greater supplies and more choices to consumers. It
should also make the Texas citrus industry more competitive with other
citrus-growing areas, which have adapted their marketing efforts to
meet consumer demands.
Finally, varying growing conditions in Texas result in diverse size
distributions of oranges and grapefruit from season to season. Severe
drought conditions may cause a season's crop to be 5 to 10 percent
small sizes. Conversely, a rainy season may result in 5 to 10 percent
large sizes. These changes in pack requirements, to approve the
shipment of all commercial sizes of oranges and grapefruit, will
provide handlers with the flexibility to market available supplies in
light of existing market conditions.
Revision of Minimum Size Requirements for Grapefruit
Minimum size requirements for grapefruit are in effect under
Sec. 906.365 of the order's rules and regulations. Currently, during
the period November 16 through January 31 each season, grapefruit must
be at least pack size 96, with a minimum diameter of 3\9/16\ inches. At
other times, grapefruit that is pack size 112 (with a minimum diameter
of 3\5/16\ inches), may be shipped if it grades at least U.S. No. 1.
Otherwise, the minimum grade requirement for grapefruit is Texas
Choice. The smaller fruit is subject to a higher grade requirement
because experience indicates that a market exists for this smaller
fruit only if it meets a higher quality standard.
This interim final rule provides that pack size 112 grapefruit (if
it grades at least U.S. No. 1) may be shipped throughout the entire
season. This has been done in recent seasons. The Texas citrus industry
has found that there is a market for this smaller grapefruit,
particularly in juice bars, health food stores, and other types of
retail outlets that use smaller fruit for juicing. In addition, some
markets, such as Canada, prefer smaller fruit.
Also, as previously indicated, drought conditions can lead to an
abundance of smaller sizes. Such conditions currently exist in the
Lower Rio Grande Valley in Texas. The expected small sized grapefruit,
which cannot be marketed profitably in processing outlets, will be made
available to meet fresh market needs through this rule. This action is
[[Page 43141]]
expected to result in improved grower returns.
Permitting shipments of pack size 112 grapefruit grading at least
U.S. No. 1 will enable Texas grapefruit handlers to meet market needs
and compete with similar size grapefruit expected to be shipped from
Florida.
These changes in pack and size requirements for Texas oranges and
grapefruit are intended to broaden the range of sizes and increase the
amount of fruit available to consumers and increase grower returns. An
alternative to this rule is to leave the current regulations in place.
However, that would result in more of the larger oranges and grapefruit
and the smaller grapefruit going to processors, and less fruit going to
the more lucrative fresh market, which yields higher returns to
growers.
After consideration of all relevant material presented, including
the TVCC's recommendation, and other available information, it is found
that this interim final rule, as hereinafter set forth, will tend to
effectuate the declared policy of the Act.
Pursuant to 5 U.S.C. 553, it is also found and determined, upon
good cause, that it is impracticable, unnecessary and contrary to the
public interest to give preliminary notice prior to putting this rule
into effect, and that good cause exists for not postponing the
effective date of this rule until 30 days after publication in the
Federal Register because: (1) To be of maximum benefit, this action
should be effective by September 1, the beginning of the 1996-97
season; (2) Texas citrus handlers are aware of this relaxation which
was recommended by the TVCC at a public meeting, and they will need no
additional time to comply with its requirements; and (3) this rule
provides a 30-day comment period and any comments received will be
considered prior to finalization of this rule.
List of Subjects in 7 CFR Part 906
Oranges, Marketing agreements, Grapefruit, Reporting and
recordkeeping requirements.
For the reasons set forth in the preamble, 7 CFR part 906 is
amended as follows:
PART 906--ORANGES AND GRAPEFRUIT GROWN IN THE LOWER RIO GRANDE
VALLEY IN TEXAS
1. The authority citation for 7 CFR part 906 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. Paragraph (a)(2)(i)(a) of Sec. 906.340 is revised to read as
follows:
Sec. 906.340 Container, pack, and container marking regulations.
(a) * * *
(2) * * *
(i) * * *
(a) Oranges, except Navel oranges and Valencia and similar late-
type oranges, when packed in any box, bag, or carton shall be sized in
accordance with the sizes set forth in the following Table I, except as
otherwise provided by regulations issued pursuant to this part, and
otherwise meet the requirements of standard pack; and when in
containers not packed according to a definite pattern shall be sized in
accordance with the sizes set forth in the following Table I and
otherwise meet the requirements of standard sizing: Provided, That the
packing tolerances, which are set forth in the U.S. Standards for
Oranges (Texas and States other than Florida, California, and Arizona),
shall be applicable to fruit so packed.
Table I.--1\2/5\ Bushel Box
[Diameter in inches]
------------------------------------------------------------------------
Pack size Minimum Maximum
------------------------------------------------------------------------
46's............................. 4\5/16\ 5
54's or 56's..................... 4\2/16\ 4\12/16\
64's............................. 3\15/16\ 4\8/16\
70's or 72's..................... 3\13/16\ 4\5/16\
80's............................. 3\10/16\ 4\2/16\
100's............................ 3\7/16\ 3\13/16\
112's............................ 3\5/16\ 3\11/16\
125's............................ 3\3/16\ 3\9/16\
163's............................ 2\15/16\ 3\5/16\
200's............................ 2\11/16\ 3\1/16\
252's............................ 2\7/16\ 2\12/16\
288's............................ 2\4/16\ 2\9/16\
324's............................ 2\3/16\ 2\8/16\
------------------------------------------------------------------------
3. Paragraph (a)(2)(i)(c) of Sec. 906.340 is amended by
redesignating ``Table I'' as ``Table II''.
4. Paragraph (a)(2)(ii) of Sec. 906.340 is revised to read as
follows:
Sec. 906.340 Container, pack, and container marking regulations.
(a) * * *
(2) * * *
(ii) Grapefruit. Grapefruit, when packed in any box, bag or carton,
shall be within the diameter limits specified for the various pack
sizes in 7 CFR 51.630(c) of the United States Standards for Grades of
Grapefruit (Texas and States other than Florida, California, and
Arizona): Provided, That the minimum diameter limit for pack size 36
grapefruit shall be 4\15/16\ inches and the maximum diameter limit
shall be 5\9/16\ inches; Provided, That the minimum diameter limit for
pack size 96 grapefruit shall be 3\9/16\ inches and for pack size 112
grapefruit shall be 3\5/16\ inches; and Provided further, That any
grapefruit in boxes or cartons shall be packed in accordance with the
requirements of standard pack.
* * * * *
5. Section 906.365 is amended by revising paragraph (a)(4) to read
as follows:
Sec. 906.365 Texas Orange and Grapefruit Regulation 34.
(a) * * *
(4) Such grapefruit are at least pack size 96, except that the
minimum diameter limit for pack size 96 grapefruit in any lot shall be
3\9/16\ inches: Provided, that any handler may handle grapefruit, which
are smaller than pack size 96, if such grapefruit grade at least U.S.
No. 1 and they are at least pack size 112, except that the minimum
diameter limit for pack size 112 grapefruit in any lot shall be 3\5/16\
inches.
* * * * *
Dated: August 16, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-21331 Filed 8-20-96; 8:45 am]
BILLING CODE 3410-02-P
