[Federal Register Volume 64, Number 168 (Tuesday, August 31, 1999)]
[Rules and Regulations]
[Pages 47349-47358]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-22666]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 906
[Docket No. FV99-906-3 IFR]
Oranges and Grapefruit Grown in Lower Rio Grande Valley in Texas;
Changes to Pack Requirements
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim final rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: This rule changes the pack requirements currently prescribed
under the marketing order covering oranges and grapefruit grown in the
Lower Rio Grande Valley in Texas. The marketing order regulates the
handling of such fruit and is administered locally by the Texas Valley
Citrus Committee (Committee). This rule changes the orange and
grapefruit pack sizes so that each pack size will reflect the actual
number of fruit in a 7/10 bushel carton. It also more closely aligns
the pack sizes for Texas oranges with the pack sizes used by shippers
of California oranges. These changes will enable Texas handlers to
compete more effectively in the marketplace. The rule also makes
conforming changes to the pack size references in the minimum size
regulations to keep the minimum size requirements for orange and
grapefruit the same as currently specified.
DATES: Effective September 1, 1999; comments received by November 1,
1999 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 sent to the Docket Clerk, Fruit
and Vegetable Programs, AMS, USDA, room 2525-S, P.O. Box 96456,
Washington, DC 20090-6456; Fax: (202) 720-5698; or E-mail:
moab.docketclerk@usda.gov. All comments should reference the 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: Belinda G. Garza, Regional Manager,
McAllen Marketing Field Office, Marketing Order Administration Branch,
Fruit and Vegetable Programs, AMS, USDA, 1313 E. Hackberry, McAllen,
Texas 78501; telephone: (956) 682-2833, Fax: (956) 682-5942; or George
Kelhart, Technical Advisor, Marketing Order Administration Branch,
Fruit and Vegetable Programs, AMS, USDA, room 2525-S, P.O. Box 96456,
Washington, DC 20090-6456; telephone: (202) 720-2491, Fax: (202) 720-
5698. Small businesses may request information on complying with this
regulation, or obtain a guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders by contacting Jay
Guerber, Marketing Order Administration Branch, Fruit and Vegetable
Programs, AMS, USDA, P.O. Box 96456, room 2525-S, Washington, DC 20090-
6456; telephone (202) 720-2491, Fax: (202) 720-5698, or E-mail:
Jay.Guerber@usda.gov. You may view the marketing agreement and order
small business compliance guide at the following web site: http://
www.ams.usda.gov/fv/moab.html.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement and Order No. 906, as amended (7 CFR part 906), regulating
the handling of oranges and grapefruit grown in the Lower Rio Grande
Valley in Texas, hereinafter referred to as the ``order.'' The
marketing agreement and order are 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 rule in
conformance with Executive Order 12866.
This rule has been reviewed under Executive Order 12988, 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.
This rule changes the current orange and grapefruit pack sizes from
a 1\2/5\ bushel box basis to pack sizes based upon the actual number of
fruit packed in a \7/10\ bushel carton. The orange pack
[[Page 47350]]
sizes also will be more closely aligned to the pack sizes and size
tolerances used by California orange shippers. The rule also makes
conforming changes to the pack size references in the minimum size
regulations for oranges and grapefruit to keep the minimum size
requirements the same as currently specified. This rule will enable
handlers to compete more effectively in the marketplace.
The Committee's Grade and Size Subcommittee met on April 20 and 29
and May 4, 1999, to discuss possible changes to the order's pack
requirements. At a meeting on May 13, 1999, the Subcommittee
recommended and the Committee unanimously approved changes to the
regulations. On July 1, 1999, the Committee met again and unanimously
recommended the following changes to the orange and grapefruit pack and
conforming changes to the size regulations.
(1) Eliminate two pack size tables for different orange varieties,
change the pack sizes to a \7/10\ bushel carton basis for all orange
varieties to be consistent with California pack sizes, and add a pack
size 64 to the California sizes. The changes will result in one pack
size chart ranging from pack size 24 to 138 with minimum and maximum
diameter size ranges for all oranges, and, when packed in \7/10\ bushel
containers, the pack sizes will reflect the actual number of fruit in
the container;
(2) Replace the 1\2/5\ bushel box references in the regulations
with \7/10\ bushel carton references;
(3) Change current grapefruit pack sizes based on a 1\2/5\ bushel
box to pack sizes based upon the actual number of fruit packed in a \7/
10\ bushel carton; and
(4) Make conforming changes to the size requirements in
Sec. 906.365 based on the above changes to keep the minimum size
requirements for oranges and grapefruit the same as currently
specified.
Under the terms of the order, fresh market shipments of oranges and
grapefruit grown in the Lower Rio Grande Valley in Texas are required
to be inspected and meet grade, size, container, and pack requirements.
Section 906.40 authorizes the issuance of pack regulations. Section
906.340(a)(2) of the order's rules and regulations outlines pack
requirements for fresh shipments of Texas oranges and grapefruit.
Changes to the Pack Requirements for Oranges
Section 906.340(a)(2)(i) specifies pack requirements for oranges.
It includes two tables specifying pack sizes in terms of minimum and
maximum diameters for each specified pack size, for different varieties
of oranges. Packing tolerances for off-size are specified, as are
standard pack requirements.
Currently, oranges are divided into two categories for the purpose
of pack regulations: (1) Navel, Valencia, and similar late-type
oranges, and (2) all other varieties of oranges. For all types of
oranges, 13 pack sizes ranging from pack size 46 (the largest fruit) to
pack size 324 (the smallest fruit) are specified. The minimum diameters
for Navel, Valencia, and similar late-type oranges for each of the pack
sizes are \2/16\ inch smaller than those specified for all other
oranges, while the maximum diameters for all varieties of oranges in
the 13 pack sizes are the same. All oranges, however, must at least be
pack size 288, except that the minimum diameter limit is 2\6/16\
inches.
The current orange pack sizes and minimum and maximum diameters are
shown in the following tables:
Table 1 (Section 906.304(a)(2)(i)(a))
Table 1.--Oranges, Except Navels, Valencias, & Similar Late-Type Oranges
[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\
------------------------------------------------------------------------
Table II (Section 906.340(a)(2)(i)(c))
Table II.--Navels, Valencia & Similar Late-Type Oranges
[1\2/5\ Bushel Box]
------------------------------------------------------------------------
Diameter in inches
Pack size -------------------------------
Minimum Maximum
------------------------------------------------------------------------
46...................................... 4\3/16\ 5
54...................................... 4 4\12/16\
64...................................... 3\13/16\ 4\8/16\
70 or 72................................ 3\11/16\ 4\5/16\
80...................................... 3\8/16\ 4\2/16\
[[Page 47351]]
100..................................... 3\5/16\ 3\13/16\
112..................................... 3\3/16\ 3\11/16\
125..................................... 3\1/16\ 3\9/16\
163..................................... 2\13/16\ 3\5/16\
200..................................... 2\9/16\ 3\1/16\
252..................................... 2\5/16\ 2\12/16\
288..................................... 2\2/16\ 2\9/16\
------------------------------------------------------------------------
All oranges must be at least Pack Size 288, except that the minimum
diameter limit for Pack Size 288 oranges in any lot shall be 2\6/16\
inches.
The Committee recommended changing the orange pack sizes to the
pack sizes used by the California citrus industry. A study by the
Committee indicates that approximately 39 percent of Texas oranges are
sold in Texas, and about 36 percent in California. Almost 90 percent of
Texas oranges are marketed west of the Mississippi River. California
dominates the western domestic orange market with fruit available on a
year-round basis. Texas, on the other hand, is a relatively small
producer of oranges with a marketing season from late September through
May. Presently, the pack sizes for California oranges are different
from those for Texas oranges. Furthermore, Texas presently has the two
previously mentioned orange size tables--one for Navels, Valencias, and
similar late-type oranges, and another for all other varieties.
Since California dominates the orange market, produce buyers are
much more familiar with California orange pack sizes than pack sizes
used by the Texas citrus industry. Buyers' computers tend to have
California pack sizes listed, but not Texas. This puts handlers of
Texas oranges at a competitive disadvantage. Further, Texas does not
currently pack a size 138 orange, because this size is not a specified
pack size. The closest Texas sizes are 126 and 144. As a result, the
Texas orange industry cannot take advantage of size 138 business.
Moreover, retailers, wholesalers, food service distributors, and
brokers are much more familiar with California orange pack sizes than
Texas orange pack sizes because California ships a much larger volume
and is present in the marketplace year-round. Having pack sizes
different from California's is a marketing problem that affects all
producers and handlers and could cause the Texas industry to lose fresh
orange sales. The Committee believes that the Texas pack sizes need to
be more closely aligned with the California pack sizes. In addition to
the pack sizes used by the California industry, the Committee
recommended a pack size 64, presently a very popular size for the Texas
industry, ranging from a minimum diameter of 2\11/16\ inches to a
maximum of 3\10/16\ inches.
The Committee unanimously recommended orange pack sizes ranging
from pack size 24 to 138 with minimum and maximum diameters based on
the \7/10\ bushel carton and the actual number of fruit in that size
carton, as shown in the following table:
Oranges
[\7/10\ bushel carton]
------------------------------------------------------------------------
Diameter in inches
Pack size/Number of oranges -------------------------------
Minimum Maximum
------------------------------------------------------------------------
24...................................... 3\12/16\ 5\1/16\
32...................................... 3\6/16\ 4\9/16\
36...................................... 3\4/16\ 4\6/16\
40...................................... 3\2/16\ 4\4/16\
48...................................... 2\15/16\ 4
56...................................... 2\13/16\ 3\13/16\
64...................................... 2\11/16\ 3\10/16\
72...................................... 2\9/16\ 3\8/16\
88...................................... 2\8/16\ 3\4/16\
113..................................... 2\7/16\ 3
138..................................... 2\6/16\ 2\12/16\
------------------------------------------------------------------------
Currently, Texas has minimum and maximum orange size diameters in
inches and fractions of an inch for each pack size based on the 1\2/5\
bushel box. The Committee recommended changing the minimum and maximum
diameter size ranges for the proposed pack sizes to a \7/10\ bushel
carton basis as shown in the foregoing table because 1\2/5\ bushel
boxes are no longer used by the industry.
Adopting the California orange pack sizes for all varieties of
oranges will eliminate the two separate pack size tables currently in
the orange pack regulations. Separate tables for different varieties of
oranges were established to allow for varietal size differences. Some
varieties tend to be round and others slightly oblong, and older
mechanical fruit sizing equipment could not accurately size the
differently shaped fruit. Present day mechanical fruit sizers, however,
accurately size all varieties of oranges regardless of shape, and two
separate pack size tables for different orange varieties are no longer
necessary.
[[Page 47352]]
Language also is being added to clarify that if \7/10\ bushel
containers of oranges are marked, the count of fruit in each container
shall not be less than the count marked on the container, but may
exceed the count marked on the container by not more than 8 percent.
The 8 percent tolerance is used in California. When packed in marked
containers other than \7/10\ bushel, the pack sizes applicable to \7/
10\ bushel containers shall also apply to such containers.
Replace References to the 1\2/5\ Bushel Box With a \7/10\ Bushel
Carton
As discussed earlier, the current Texas orange and grapefruit
regulations refer to a 1\2/5\ bushel box. The 1\2/5\ bushel box is a
carryover from past years when fruit was packed in a wooden ``Bruce''
box, which is twice the size of the common \7/10\ bushel carton
presently used in commercial business. The Committee recommended
changing all references to the 1\2/5\ bushel box to a \7/10\ bushel
carton. References to the 1\2/5\ bushel box and associated fruit pack
sizes based on that container are confusing to the industry. All weekly
Committee utilization reports, annual reports, and other documents
currently reference the \7/10\ bushel carton equivalent. With the
elimination of the 1\2/5\ bushel box, the orange pack sizes would be in
accordance with the count in a \7/10\ bushel carton.
The \7/10\ bushel carton equivalent and fruit count per carton is
now the accepted unit of measure for oranges and grapefruit within the
Texas industry. Handlers actually currently pack as to count of fruit
in the box. Eliminating all references to the 1\2/5\ bushel box and
related pack sizes will minimize confusion among all producers and
handlers.
Changes to the Pack Requirements for Grapefruit
Section 906.340(a)(2)(ii) specifies pack requirements for
grapefruit based upon the United States Standards for Grades of
Grapefruit (Texas and States other than Florida, California, and
Arizona), hereinafter referred to as the ``grapefruit standards'', with
some exceptions. Grapefruit are currently required to be packed within
the diameter limits specified for the various pack sizes defined in 7
CFR 51.630(c) of the grapefruit standards, based on a 1\2/5\ bushel
box. Exceptions are that the minimum diameter limit 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 current standard pack and
standard sizing requirements, and packing tolerances will remain
unchanged.
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. The Texas grapefruit pack regulations
include a size 36 grapefruit, which ranges from 4\15/16\ to 5\9/16\
inches in diameter. This pack size is not in the grapefruit standards.
The minimum diameters for pack sizes 96 and 112 are different from
those specified in the grapefruit standards. The grapefruit standards
specify 3\6/16\ inches and 3\2/16\ inches, and the order requirements
specify 3\9/16\ inches and 3\5/16\ inches, respectively. The maximum
diameters are the same.
The Committee recommended revising the grapefruit pack sizes based
on a \7/10\ bushel carton as shown in the following table rather than
the 1\2/5\ bushel box, which is obsolete and confusing. As mentioned
earlier, the Texas citrus industry for many years has used the \7/10\
bushel carton as its standard shipping container. Presently, any
reference to a 1\2/5\ bushel of fruit has to be converted to \7/10\
bushel equivalents. With the elimination of the 1\2/5\ bushel box,
grapefruit pack sizes will reference the number of grapefruit that will
pack in a \7/10\ bushel carton.
Grapefruit
[\7/10\ bushel carton]
------------------------------------------------------------------------
Diameter in inches
Pack size/ Number of grapefruit -------------------------------
Minimum Maximum
------------------------------------------------------------------------
18(36).................................. 4\15/16\ 5\9/16\
23(46).................................. 4\5/16\ 5
27(54/56)............................... 4\2/16\ 4\12/16\
32(64).................................. 3\15/16\ 4\8/16\
36(70/72)............................... 3\13/16\ 4\5/16\
40(80).................................. 3\10/16\ 4\2/16\
48(96).................................. 3\9/16\ 3\14/16\
56(112/113)............................. 3\5/16\ 3\10/16\
------------------------------------------------------------------------
(Numbers in parentheses represent current pack sizes.) Minimum and
maximum diameter ranges for the new pack sizes (not in parentheses)
are the same as currently specified.
Language also is being added to clarify that if \7/10\ bushel
containers of grapefruit are marked, the count of fruit in the
container shall not be less than the count marked on the container, but
may exceed the count marked on the container by not more than 8
percent. The 8 percent tolerance is used in California. When packed in
marked containers other than \7/10\ bushel, the pack sizes applicable
to \7/10\ bushel containers shall also apply to such containers.
Conforming Changes to the Size Regulations
Changing the orange pack sizes and minimum and maximum diameter
size ranges requires conforming changes to the size regulations for
oranges in Sec. 906.365(a)(2). The minimum size which may be packed
will change from pack size 288 to the new pack size 138, but the
minimum size permitted will continue to be a 2\6/16\ inch minimum
diameter.
Changing the grapefruit pack sizes from a 1\2/5\ bushel box basis
to pack sizes based on the \7/10\ bushel carton also requires
conforming changes to the grapefruit size regulations in
Sec. 906.365(a)(4). The minimum pack size will change from pack size 96
to pack size 48, but the minimum diameter permitted to be shipped will
remain 3\9/16\ inches. A reference to current pack size 112 in
Sec. 906.365(a) will change to pack size 56. That paragraph provides
that pack size 56 grapefruit (with a minimum diameter of 3\5/16\
inches) may be shipped if the fruit grades at least U.S. No. 1.
[[Page 47353]]
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA), the Agricultural Marketing Service (AMS) has considered the
economic impact of this action on small entities. Accordingly, AMS has
prepared this initial regulatory flexibility analysis.
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 the 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 315 producers of oranges and grapefruit in
the production area and 16 handlers subject to regulation under the
marketing order. Small agricultural producers have been defined by the
Small Business Administration (SBA) (13 CFR 121.601) as those having
annual receipts less than $500,000 and small agricultural service firms
are defined as those whose annual receipts are less than $5,000,000.
The majority of Texas orange and grapefruit producers and handlers may
be classified as small entities.
Last year, 5 of the 16 handlers (31 percent) each shipped over
625,000 \7/10\ bushel cartons of oranges and grapefruit. Using an
average f.o.b. price of $8.00 per carton, these handlers could be
considered large businesses by the SBA, and the remaining 11 handlers
(69 percent) could be considered small businesses. Of the approximately
315 producers within the production area, few have sufficient acreage
to generate sales in excess of $500,000; therefore, a majority of
producers of Texas oranges and grapefruit may be classified as small
entities.
Many producers are still recovering from the 1983 and 1989
devastating freezes that virtually destroyed the Texas citrus industry.
Most trees in the production area were planted within the past ten
years and have not yet reached full maturity. As a result, yields are
still somewhat low and the profit to the producers is marginal. The
1998-99 season grapefruit and orange production levels were 59 percent
and 36 percent of the pre-1983 freeze levels.
This rule changes the orange and grapefruit pack sizes currently
prescribed under the order to pack sizes based upon the actual number
of fruit packed in a \7/10\ bushel carton. It also more closely aligns
the pack sizes for Texas oranges to those used by shippers of oranges
grown in California. Conforming changes are also made to the pack size
references in the size regulations for oranges and grapefruit to the
minimum sizes permitted to be shipped the same as currently specified.
This rule will enable handlers to compete more effectively in the
marketplace.
The Grade and Size Subcommittee met on April 20 and 29 and May 4,
1999, to discuss possible changes to the order's pack requirements. At
a meeting on May 13, 1999, the Subcommittee recommended and the
Committee unanimously approved changes to the regulations. On July 1,
1999, the Committee met again and unanimously recommended the following
changes to the orange and grapefruit pack and conforming changes to the
size regulations:
(1) Eliminate two separate pack size tables for different orange
varieties and establish one table for all orange varieties, change the
pack sizes to a \7/10\ bushel carton basis for all orange varieties
consistent with California pack sizes (the Texas pack sizes currently
are based on 1\2/5\ bushel boxes), and add a pack size 64 not specified
in the California sizes. The new pack size table includes pack sizes
for all orange varieties ranging from pack size 24 to 138, and each
pack size has minimum and maximum diameter ranges;
(2) Change current grapefruit pack sizes based on a 1\2/5\ bushel
box to pack sizes based upon the actual number of fruit packed in the
\7/10\ bushel carton; and (3) Make conforming changes to the size
regulations based on the above recommendations.
Under the terms of the order, fresh market shipments of oranges and
grapefruit grown in the Lower Rio Grande Valley in Texas are required
to be inspected and meet grade, size, container, and pack requirements.
Section 906.40 authorizes the issuance of pack regulations. Section
906.340(a)(2) of the order's rules and regulations outlines pack
requirements for fresh shipments of Texas oranges and grapefruit. Size
requirements are specified under Sec. 906.365.
Changes to the Pack Requirements for Oranges
Section 906.340(a)(2) specifies pack requirements for oranges and
includes two tables with pack sizes and minimum and maximum diameter
size ranges for different varieties of oranges. These requirements
provide, among other things, that oranges be packed in accordance with
certain minimum and maximum diameters.
Currently, oranges are divided into two categories for the purpose
of pack regulations: (1) Navel, Valencia and similar late-type oranges,
and (2) all other varieties of oranges. All types of oranges must be
packed in accordance with 13 pack sizes. The minimum diameters for
Navel, Valencia, and similar late-type oranges for each of the pack
sizes are \2/16\ inch smaller than those specified for all other
oranges, while the maximum diameters for all varieties of oranges in
the 13 pack sizes are the same. The minimum diameter, however, for all
oranges is pack size 288 with a minimum diameter limit of 2\6/16\
inches.
The current orange pack sizes and minimum and maximum diameters are
shown in the following tables:
Table I (Section 906.304(a)(2)(i)(a))
Table 1.--All Oranges, Except Navels, Valencias, and Similar Late-Type
Oranges
[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\
[[Page 47354]]
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\
------------------------------------------------------------------------
Table II (Section 906.340(a)(2)(i)(c))
Table II.--Navels, Valencia & Similar Late-Type Oranges
[\2/5\ Bushel Box]
------------------------------------------------------------------------
Diameter in inches
Pack size -------------------------------
Minimum Maximum
------------------------------------------------------------------------
46...................................... 4\3/16\ 5
54...................................... 4 4\12/16\
64...................................... 3\11/16\ 4\8/16\
70 or 72................................ 3\11/16\ 4\5/16\
80...................................... 3\8/16\ 4\2/16\
100..................................... 3\5/16\ 3\13/16\
112..................................... 3\3/16\ 3\11/16\
125..................................... 3\1/16\ 3\9/16\
163..................................... 2\13/16\ 3\5/16\
200..................................... 2\9/16\ 3\1/16\
252..................................... 2\5/16\ 2\12/16\
288..................................... 2\2/16\ 2\9/16\
------------------------------------------------------------------------
All oranges must be at least Pack Size 288, except that the minimum
diameter limit for Pack Size 288 oranges in any lot shall be 2\6/16\
inches.
The Committee recommended changing the orange pack sizes to the
pack sizes used by the California citrus industry. A study by the
Committee indicates that approximately 39 percent of Texas oranges are
sold in Texas, and about 36 percent in California. Almost 90 percent is
marketed west of the Mississippi River. California dominates the
western domestic orange market with fruit available on a year-round
basis. Texas, on the other hand, is a relatively small producer of
oranges with a marketing season from late September through May.
Presently, oranges from California are sized differently from oranges
available from Texas. Furthermore, as mentioned before, Texas has two
orange size tables--one for Navels, Valencias, and similar late-type
oranges, and another for all other varieties.
Since California dominates the orange market, produce buyers are
much more familiar with California orange pack sizes than pack sizes
used by the Texas citrus industry. Buyers' computers tend to have
California pack sizes listed, but not Texas'. This puts Texas oranges
at a competitive disadvantage. Further, Texas does not currently pack a
size 138 orange. The closest Texas sizes are 126 and 144. As a result,
the Texas orange industry cannot supply buyers interested in purchasing
size 138.
Retailers, wholesalers, food service distributors, and brokers are
much more familiar with California orange pack sizes than Texas orange
pack sizes because California ships a much larger volume and is present
in the marketplace year-round. Having pack sizes different from
California's is a marketing problem that affects all producers and
handlers and could cause the Texas industry to lose fresh orange sales.
The Committee believes that the pack sizes for Texas should be similar
to those used by California shippers. In addition to the pack sizes
used by the California industry, the Committee recommended a pack size
64, presently a very popular size for the Texas industry, ranging from
a minimum diameter of 2\11/16\ inches to a maximum of 3\10/16\ inches.
The Committee unanimously recommended orange pack sizes ranging
from pack size 24 to 138 with minimum and maximum diameters based on
the \7/10\ bushel carton, which will refer to the actual number of
fruit in the carton, as shown in the following table:
Oranges
[\7/10\ bushel carton]
------------------------------------------------------------------------
(Diameter in Inches)
Pack size/Number of grapefruit -------------------------------
Minimum Maximum
------------------------------------------------------------------------
24...................................... 3\12/16\ 5\1/16\
32...................................... 3\6/16\ 4\9/16\
[[Page 47355]]
36...................................... 3\4/16\ 4\6/16\
40...................................... 3\2/16\ 4\4/16\
48...................................... 2\15/16\ 4
56...................................... 2\13/16\ 3\13/16\
64...................................... 2\11/16\ 3\10/16\
72...................................... 2\9/16\ 3\8/16\
88...................................... 2\8/16\ 3\4/16\
113..................................... 2\7/16\ 3
138..................................... 2\6/16\ 2\12/16\
------------------------------------------------------------------------
Currently, Texas has minimum and maximum orange diameter size
ranges in inches and fractions of an inch for each pack size. The
Committee recommended changing the minimum and maximum diameters for
the pack sizes to a \7/10\ bushel carton basis as shown in the
foregoing table.
Adopting the California orange pack sizes for all varieties of
oranges would eliminate the two separate pack size tables currently in
the orange pack regulations. The separate tables for different
varieties of oranges were established to allow for varietal size
differences. Some varieties tend to be round and others slightly
oblong, which caused problems with older mechanical sizing equipment.
Present day mechanical fruit sizing equipment, however, accurately
sizes all varieties of oranges and two separate pack size tables for
different orange varieties are no longer necessary.
For purposes of clarity, language is being added under Table I
indicating that if \7/10\ bushel containers of oranges are marked, the
count of fruit in each container shall not be less than the count
marked on the container, but may exceed the count marked on the
container by not more than 8 percent. The 8 percent tolerance is used
in California. When packed in marked containers other than \7/10\
bushel, the pack sizes applicable to \7/10\ bushel containers shall
also apply to such containers.
Replace References to the 1\2/5\ Bushel Box with a \7/10\ Bushel
Carton
The current Texas orange and grapefruit pack size regulations refer
to a 1\2/5\ bushel box. The 1\2/5\ bushel box is a carryover from past
years when fruit was packed in a wooden ``Bruce'' box, which is twice
the size of the common \7/10\ bushel carton presently used in
commercial business. The Committee recommended changing all references
to the 1\2/5\ bushel box to a \7/10\ bushel carton. References to the
1\2/5\ bushel box and associated fruit pack sizes based on that
container are confusing to the industry. All weekly Committee
utilization reports, annual reports, and other documents currently
reference the \7/10\ bushel carton or equivalent. With the elimination
of the 1\2/5\ bushel box, the orange pack sizes would be in accordance
with the count in a \7/10\ bushel carton.
The \7/10\ bushel carton and fruit count per carton is now the
accepted standard for oranges and grapefruit within the Texas industry.
Handlers currently pack as to the count of fruit in the box.
Eliminating all references to the 1\2/5\ bushel box and related pack
sizes will minimize confusion among all producers and handlers.
Changes to the Pack Requirements for Grapefruit
Section 906.340(a)(2) also provides pack requirements for
grapefruit based upon the United States Standards for Grades of
Grapefruit (Texas and States other than Florida, California, and
Arizona) with some exceptions. Grapefruit are currently required to be
packed within the diameter limits specified for the various pack sizes
defined in 7 CFR 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, based on
a 1\2/5\ bushel box. 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 current standard pack and
standard sizing requirements, and packing tolerances will remain
unchanged.
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. The Texas grapefruit pack regulations
also include a size 36 grapefruit, which ranges from 4\15/16\ to 5\9/
16\ inches in diameter. The minimum diameters for pack sizes 96 and 112
have been modified from 3\6/16\ inches and 3\2/16\ inches as specified
in the grapefruit standards to 3\9/16\ and 3\5/16\ inches,
respectively.
The Committee recommended revising the grapefruit pack sizes based
on a \7/10\ bushel carton, as shown in the following table, rather than
the 1\2/5\ bushel box, because the latter basis is obsolete and
confusing. The Texas citrus industry for many years has used the \7/10\
bushel carton as the standard. Presently, any reference to a 1\2/5\
bushel of fruit has to be converted to \7/10\ bushel equivalents. With
the elimination of the 1\2/5\ bushel box, grapefruit pack sizes will
reference the number of grapefruit that will pack in a \7/10\ bushel
carton.
Grapefruit
[\7/10\ bushel carton]
------------------------------------------------------------------------
Diameter in inches
Pack size/Number of grapefruit -------------------------------
Minimum Maximum
------------------------------------------------------------------------
18(36).................................. 4\15/16\ 5\9/16\
[[Page 47356]]
23(46).................................. 4\5/16\ 5
27(54/56)............................... 4\2/16\ 4\12/16\
32(64).................................. 3\15/16\ 4\8/16\
36(70/72)............................... 3\13/16\ 4\5/16\
40(80).................................. 3\10/16\ 4\2/16\
48(96).................................. 3\9/16\ 3\14/16\
56(112/113)............................. 3\5/16\ 3\10/16\
------------------------------------------------------------------------
(Numbers in parentheses represent current pack sizes.)
Minimum and maximum diameter size ranges for the new pack sizes
will remain the same as currently specified.
For purposes of clarity, language is being added after Table II
specifying that if \7/10\ bushel containers of grapefruit are marked,
the count of fruit in the container shall not be less than the count
marked on the container, but may exceed the count marked on the
container by not more than 8 percent. The 8 percent tolerance is used
in California. When packed in marked containers other than \7/10\
bushel, the pack sizes applicable to \7/10\ bushel containers shall
also apply to such containers.
Conforming Changes to the Size Regulations
Changing the orange pack sizes and minimum and maximum diameter
size ranges requires conforming changes to the size regulations for
oranges in 906.365(a)(2). The minimum size which may be packed will
change from pack size 288 to a new pack size 138, but the minimum
diameter permitted to be shipped will continue to be 2\6/16\ inches.
Changing the grapefruit pack sizes from a 1\2/5\ bushel box basis
to pack sizes based on the \7/10\ bushel carton also requires
conforming changes to the grapefruit size regulations in 906.365(a)(4).
The minimum pack size will change from pack size 96 to pack size 48,
but the minimum diameter permitted to be shipped will remain 3\9/16\
inches. A reference to current pack size 112 in 906.365(a)(4) will
change to pack size 56. That paragraph provides that pack size 56
grapefruit (with a minimum diameter of 3\5/16\ inches) may be packed
and shipped if the fruit grades at least U.S. No. 1.
The Committee concluded that leaving the pack sizes as they
currently are could cause the Texas citrus industry to lose fresh
orange sales. The pack size changes are expected to result in increased
sales, but the amount of increase cannot be determined precisely.
Eliminating the references to the 1\2/5\ bushel box in the
regulations will not have any effect upon producer returns or sales. It
simply eliminates an antiquated unit of measure from the regulations,
will prevent confusion, and eliminate the need for converting 1\2/5\
bushel box references to the standard \7/10\ bushel carton.
Changing the grapefruit pack sizes consistent with the changes
being recommended in the orange pack sizes would prevent confusion in
the industry. The industry, both sellers and buyers, currently refer to
the size of grapefruit (and oranges) by the number of fruit packed in a
\7/10\ bushel carton. The changes made by this action reflect this
industry practice.
The opportunities and benefits of these changes are expected to be
equally available to all Texas citrus producers and handlers regardless
of their size of operation. The recommended changes offer benefits to
the entire Texas citrus industry. These changes will enable handlers to
compete more effectively in the marketplace. They will also contribute
to the industry's long-term objective to market as much citrus as
possible. These regulation changes are expected to lead to market
expansion, which would benefit producers, handlers, buyers, and
consumers of Texas citrus. Accordingly, in assessing alternatives to
the changes provided in this interim final rule, this action provides
the most beneficial results.
This rule will not impose any additional reporting or recordkeeping
requirements on either small or large Texas orange and grapefruit
handlers. As with all Federal marketing order programs, reports and
forms are periodically reviewed to reduce information requirements and
duplication by industry and public sectors. In addition, the Department
has not identified any relevant Federal rules that duplicate, overlap,
or conflict with this rule.
Further, the Committee's meetings were widely publicized throughout
the Texas orange and grapefruit industry and all interested persons
were invited to attend the meetings and participate in Committee
deliberations. Like all Committee meetings, the May 13, 1999, and July
1, 1999, meetings were public meetings and all entities, both large and
small, were able to express their views on this issue.
Also, the Committee has a number of appointed subcommittees to
review certain issues and make recommendations to the Committee. The
Committee's Grade and Size Subcommittee met on April 20, April 29, and
May 4, 1999, and discussed this issue in detail. Those meetings were
also public meetings and both large and small entities were able to
participate and express their views. Finally, interested persons are
invited to submit information on the regulatory and informational
impacts of this action on small businesses.
After consideration of all relevant material presented, including
the Committee's recommendation, and other information, it is found that
this interim final rule, as hereinafter set forth, will tend to
effectuate the declared policy of the Act.
This rule invites comments on changes to the pack requirements and
conforming changes to the size regulations currently prescribed under
the Texas citrus marketing order. Any comments received will be
considered prior to finalization of this rule.
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) This rule changes pack requirements applied to handlers of
Texas citrus grown in the production area to enable them to compete
more
[[Page 47357]]
effectively in the marketplace; (2) the regulatory period begins
September 1 and this action should be in effect promptly so handlers
can plan accordingly; (3) the Committee unanimously recommended these
changes at public meetings and interested parties had an opportunity to
provide input; (4) Texas citrus handlers are aware of this action and
are preparing to operate under the new pack sizes; and (5) this rule
provides a 60-day comment period and any comments received will be
considered prior to finalization of this rule.
List of Subjects in 7 CFR part 906
Grapefruit, Marketing agreements, Oranges, 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 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. The subpart heading immediately preceding Sec. 906.340 is
revised to read ``Subpart--Container and Pack Requirements''
3. In Sec. 906.340, paragraphs (a)(2)(i)(b) and (a)(2)(i)(c) are
removed, and paragraphs (a)(2)(i), Tables I and II, and (a)(2)(ii) are
revised to read as follows:
Sec. 906.340 Container, pack, and container marking regulations.
(a) * * *
(2) Pack regulation. (i) Oranges. (A) Oranges, when packed in any
carton, bag, or other container, shall be sized in accordance with the
sizes in the following Table I, and, when place packed in cartons or
other containers, 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 in Table I and otherwise meet the
requirements of standard sizing: Provided, That the packing tolerances
in the U.S. Standards for Grades of Oranges (Texas and States other
than Florida, California, and Arizona), shall apply to fruit so packed:
Table I.--Oranges
[\7/10\ bushel carton]
------------------------------------------------------------------------
Diameter in inches
Pack size/Number of oranges -------------------------------
Minimum Maximum
------------------------------------------------------------------------
24...................................... 3\12/16\ 5\1/16\
32...................................... 3\6/16\ 4\9/16\
36...................................... 3\4/16\ 4\6/16\
40...................................... 3\2/16\ 4\4/16\
48...................................... 2\15/16\ 4
56...................................... 2\13/16\ 3\13/16\
64...................................... 2\11/16\ 3\10/16\
72...................................... 2\9/16\ 3\8/16\
88...................................... 2\8/16\ 3\4/16\
113..................................... 2\7/16\ 3
138..................................... 2\6/16\ 2\12/16\
------------------------------------------------------------------------
(B) If \7/10\ bushel containers of oranges are marked, the count of
fruit in each container shall not be less than the count marked on the
container, but may exceed the count marked on the container by not more
than 8 percent. When packed in marked containers other than \7/10\
bushel, the pack sizes applicable to \7/10\ bushel containers shall
also apply to such containers.
(ii) Grapefruit. (A) Grapefruit, when packed in any carton, bag, or
other container, shall be sized in accordance with the sizes in the
following Table II, except as otherwise provided in the regulations
issued pursuant to this part, and when place packed in cartons or other
containers 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 in Table II and otherwise meet the
requirements of standard sizing: Provided, That the packing tolerances
in the U.S. Standards for Grades of Grapefruit (Texas and States other
than Florida, California, and Arizona), shall apply to fruit so packed:
Table II.--Grapefruit
[\7/10\ bushel carton]
------------------------------------------------------------------------
Diameter in inches
Pack size/Number of grapefruit -------------------------------
Minimum Maximum
------------------------------------------------------------------------
18...................................... 4\15/16\ 5\9/16\
23...................................... 4\5/16\ 5
27...................................... 4\2/16\ 4\12/16\
32...................................... 3\15/16\ 4\8/16\
36...................................... 3\13/16\ 4\5/16\
40...................................... 3\10/16\ 4\2/16\
48...................................... 3\9/16\ 3\14/16\
56...................................... 3\5/16\ 3\10/16\
------------------------------------------------------------------------
[[Page 47358]]
(B) If \7/10\ bushel containers of grapefruit are marked, the count
of fruit in the container shall not be less than the count marked on
the container, but may exceed the count marked on the container by not
more than 8 percent. When packed in marked containers other than \7/10\
bushel, the pack sizes applicable to \7/10\ bushel containers shall
also apply to such containers.
* * * * *
3. Section 906.365 is amended by revising paragraphs (a)(2) and
(a)(4) to read as follows:
Sec. 906.365 Texas Orange and Grapefruit Regulation 34.
(a) * * *
(2) Such oranges are at least pack size 138 with a minimum diameter
limit of 2\6/16\ inches;
* * * * *
(4) Such grapefruit are at least pack size 48 with a minimum
diameter limit of 3\9/16\: Provided, That any handler may handle
grapefruit smaller than pack size 48, if such grapefruit grade at least
U.S. No. 1 and they are at least pack size 56 with a minimum diameter
limit of 3\5/16\ inches.
* * * * *
Dated: August 26, 1999.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 99-22666 Filed 8-30-99; 8:45 am]
BILLING CODE 3410-02-P
