[Federal Register Volume 63, Number 170 (Wednesday, September 2, 1998)]
[Proposed Rules]
[Pages 46708-46711]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-23513]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 905
[Docket No. FV98-905-5 PR]
Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida;
Regulation of Fallglo Variety Tangerines
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
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SUMMARY: This rule invites comments on the addition of Fallglo
tangerines to the varieties of citrus fruit regulated under the
marketing order covering oranges, grapefruit, tangerines, and tangelos
grown in Florida. The marketing order is administered locally by the
Citrus Administrative Committee (committee). This rule would add
Fallglo tangerines to the varieties covered under the order. It would
also establish minimum grade and size requirements for the Fallglo
variety. This rule is intended to assure that the Fallglo tangerines
entering fresh market channels are of a size and quality acceptable to
consumers. This proposed rule is in the interest of producers,
shippers, and consumers.
DATES: Comments must be received by September 22, 1998.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposal. 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) 205-6632; or E-mail:
moabdocketclerk@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: William G. Pimental, Marketing
Specialist, Southeast Marketing Field Office, Marketing Order
Administration Branch, F&V, AMS, USDA, P.O. Box 2276, Winter Haven,
Florida 33883-2276; telephone: (941) 299-4770, Fax: (941) 299-5169; or
George Kelhart, Technical Advisor, Marketing Order Administration
Branch, F&V, AMS, USDA, room 2525-S, P.O. Box 96456, Washington, DC
20090-6456; telephone: (202) 720-2491, Fax: (202) 205-6632. Small
businesses may request information on compliance with this regulation
by contacting Jay Guerber, 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) 205-
6632.
SUPPLEMENTARY INFORMATION: This proposal is issued under Marketing
Agreement No. 84 and Marketing Order No. 905, both as amended (7 CFR
part 905), regulating the handling of oranges, grapefruit, tangerines,
and tangelos grown in Florida, 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 proposal has been reviewed under Executive Order 12988, Civil
Justice Reform. This rule is not intended to have retroactive effect.
This proposal 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.
The order provides for the establishment of grade and size
requirements for Florida citrus, with the concurrence of the Secretary.
These grade and size requirements are designed to provide fresh markets
with citrus fruit of acceptable quality and size. This helps create
buyer confidence and contributes to stable marketing conditions. This
is in the interest of growers, handlers, and consumers, and is designed
to increase returns to Florida citrus growers.
This proposed rule would add Fallglo tangerines to the citrus
varieties covered under the order. It would also establish minimum
grade and size requirements for the Fallglo variety. This rule is
designed to help assure that the size and quality of Fallglo tangerines
entering fresh market channels are acceptable to consumers. This action
was unanimously recommended by the committee at its meeting on May 22,
1998.
Section 905.5 of the order defines the varieties of fruit regulated
under the order and authorizes the addition of other varieties as
specified in Sec. 905.4, as recommended by the committee and approved
by the Secretary. Section 905.105 contains the changes in varieties
that have been made using this authority. This proposal would add
Fallglo tangerines to the varieties of citrus fruit regulated under the
order by modifying Sec. 905.105.
Fallglo tangerines are a relatively new variety coming into
significant commercial production. The committee has been following the
production statistics for Fallglo tangerines. During the last four
years this variety has experienced rapid production growth. The
committee uses a level of a million cartons of production as a measure
in considering a variety's commercial significance. In the 1997-98
season, total utilization of Fallglo tangerines approximated 1,157,624
cartons (\4/5\ bushel). This compares to 465,876 (\4/5\ bushel) cartons
utilized during the 1994-95 season.
Another indicator of commercial significance is the market share
held by the variety. For the 1997-98 season, Fallglo tangerines shipped
fresh totaled approximately 874,000 cartons (\4/5\ bushel), or
approximately 23 percent of the early tangerine market. As the trees of
this variety reach full bearing age and additional plantings begin to
bear fruit, the committee expects shipments of Fallglo tangerines to
continue to increase and comprise a larger share of the early tangerine
market.
The committee believes that the current level of production and
shipments is significant enough to
[[Page 46709]]
warrant the addition of Fallglo tangerines to the varieties covered
under the order. This rule would also establish minimum grade and size
requirements for Fallglo tangerines. Section 905.52 of the order, in
part, authorizes the committee to recommend minimum grade and size
regulations to the Secretary. Section 905.306 of the order's rules and
regulations specifies minimum grade and size requirements for different
varieties of fresh Florida citrus. Such requirements for domestic
shipments are specified in Sec. 905.306 in Table I of paragraph (a),
and for export shipments in Table II of paragraph (b).
This rule would amend Sec. 905.306 to add the Fallglo tangerine
variety to the list of entries in Table I of paragraph (a), and in
Table II of paragraph (b). A minimum grade of U.S. No. 1 as specified
in the U.S. Standards for Grades of Florida Tangerines (7 CFR 51.1810
through 51.1837), and a minimum size of 2\6/16\ inches diameter would
be established for Fallglo tangerines for both domestic and export
shipments.
The committee recommended the minimum size of 2\6/16\ inches
diameter for Fallglo tangerines because this variety of tangerine tends
to grow larger than the other tangerine varieties regulated at the 2\4/
16\ inch minimum diameter, and it can easily attain the larger size.
The minimum grade of U.S. No. 1 was recommended by the committee for
this variety because tangerines meeting the requirements of this grade
are mature, and, while having more cosmetic defects than the higher
grades specified in the standards, the defects do not materially
detract from the appearance, or the edible or marketing quality of the
fruit. All regulated varieties of Florida tangerines, except Honey
tangerines, have a minimum U.S. No. 1 grade. Honey tangerines are not
regulated at U.S. No. 1 because their skin possesses excessive amounts
of green coloring which causes them to exceed the tolerances for that
grade defect. Honey tangerines must be at least Florida No. 1 grade,
which permits more green coloring than U.S. No. 1. According to the
committee, almost all of the Fallglo tangerines shipped fresh in 1997-
98 would have met the proposed requirements had they been in effect.
Minimum grade and size requirements for domestic and export
shipments of tangerines are designed to prevent shipments of low grade,
immature, small sized, or otherwise unsatisfactory fruit from entering
fresh market channels. Preventing such shipments helps create buyer
confidence in the marketplace and helps foster stable marketing
conditions in the interest of producers.
The committee noted that fresh shipments of Fallglo tangerines had
increased from 381,990 cartons (\4/5\ bushel) in 1994-95 to 874,076
cartons (\4/5\ bushel) in 1997-98. Total utilization had increased from
465,876 \4/5\ bushel cartons in 1994-95 to 1,157,624 \4/5\ bushel
cartons in 1997-98. In the 1997-98 season, approximately 76 percent of
the Fallglo tangerine crop was shipped in fresh market channels,
representing approximately 23 percent of the early tangerine crop. The
committee believes that the current market share and shipment levels
justify establishing minimum grade and size requirements for Fallglo
tangerines and that these requirements are needed to help assure and
maintain acceptable shipments.
The committee further believes that the addition of this variety to
those regulated under the order and the establishment of minimum grade
and size requirements for Fallglo tangerines will become increasingly
important as production and market share increase. The establishment of
such requirements for this tangerine variety is expected to help ensure
that only fresh fruit of acceptable size and quality reaches consumers
in the interest of producers, handlers, and consumers. Experience has
shown that providing uniform quality and size acceptable to consumers
helps stabilize the market, improves grower returns, and fosters market
growth.
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 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 75 tangerine handlers subject to regulation
under the order and approximately 11,000 growers of citrus in the
regulated area. Small agricultural service firms have been defined by
the Small Business Administration (SBA) as those having annual receipts
of less than $5,000,000, and small agricultural producers are defined
as those having annual receipts of less than $500,000 (13 CFR 121.601).
Based on industry and committee data for the 1997-98 season, the
average annual free-on-board price for fresh Florida tangerines during
the 1997-98 season was around $12.51 per \4/5\ bushel carton, and total
fresh shipments of early tangerines for the 1997-98 season are
estimated at 3.8 million cartons.
Approximately 40 percent of all handlers handled 80 percent of
Florida tangerine shipments. In addition, many of these handlers ship
other citrus fruit and products that would contribute further to
handler receipts. About 80 percent of citrus handlers could be
considered small businesses under SBA's definition and about 20 percent
of the handlers could be considered large businesses. The majority of
Florida citrus handlers, and growers may be classified as small
entities.
Under Sec. 905.5 the committee has the authority to recommend to
the Secretary the addition of other citrus varieties to those covered
under the order. Section 905.52 of the order, in part, authorizes the
committee to recommend minimum grade and size regulations to the
Secretary. Pursuant to this authority, minimum grade and size
requirements for domestic and export shipments are specified for
numerous citrus varieties covered under the order. Currently, Fallglo
tangerines are not included under the order and no minimum grade and
size requirements are established for this variety.
This rule would make changes to Secs. 905.105 and 905.306 of the
rules and regulations concerning covered varieties and minimum grade
and size requirements, respectively. This rule would add Fallglo
tangerines to the varieties covered under the order. It would also
establish a minimum grade and size requirement for Fallglo tangerines.
The establishment of such requirements for this variety would help
stabilize the market and improve grower returns by providing uniform
quality and size acceptable to consumers.
This regulation would have a positive impact on affected entities.
This action is intended to maintain and improve quality. The purpose of
this rule would be to improve the quality of fruit entering fresh
market channels in the interest of producers, shippers, and consumers.
Minimum grade and size requirements for domestic and export shipments
of tangerines are designed to prevent shipments of low grade, immature,
small sized, or otherwise unsatisfactory fruit from entering fresh
market channels.
While this rule would establish a minimum grade and size
requirement
[[Page 46710]]
for Fallglo tangerines, many handlers in the industry have been using
these requirements voluntarily. According to the committee, almost all
of the Fallglo tangerines shipped fresh in 1997-98 (874,076 \4/5\
bushel cartons) would have met the requirements proposed in this rule
(i.e., U.S. No. 1 and 2\6/16\ inches in diameter) had they been in
effect. Therefore, this rule should not be overtly restrictive, and the
overall effect on costs is expected to be minimal in relation to the
benefits expected.
Regarding expected handler inspection costs, three inspection and
certification options are being used by Florida citrus handlers
regulated under the order. The options are Partners in Quality (PIQ),
continuous in-line, and lot inspection. The PIQ inspection option is an
audit based quality assurance program between inspection officials of
the Fresh Products Branch, F&V, AMS, USDA, and officials from the
individual packinghouses. Under PIQ, the packinghouse and inspection
officials develop a system of checks along the processing/packing line
which demonstrate and document their ability to pack product that meets
all applicable requirements. The effectiveness of PIQ is verified
through periodic, unannounced audits of each packer's system by USDA-
approved auditors. Under the latter two inspection options, the
commodity is inspected by Federal or Federal-State inspection officials
as packaged product, rather than before packaging by packinghouse
officials as with PIQ, and the results are certified. Current costs are
$0.04 cents per carton for PIQ type inspection, $0.07 cents per carton
for continuous in-line inspection, and $39.00 per hour for lot
inspection.
By not setting minimum quality and size regulations, a quantity of
poor quality, small sized fruit may reach the retail market, resulting
in consumer dissatisfaction and product substitution. Such a lapse in
quality and/or size could result in a price reduction. Preventing such
shipments helps create a buyer confidence in the marketplace and helps
foster stable marketing conditions in the interest of producers.
A stabilized market that returns a fair price would be beneficial
to both small and large growers and handlers. The opportunities and
benefits of this rule are expected to be available to all Fallglo
tangerine growers and handlers regardless of their size of operation.
This action would not impose any additional reporting or
recordkeeping requirements on either small or large citrus handlers. As
with all Federal marketing order programs, reports, and forms are
periodically reviewed to reduce information requirements and
duplication by industry and public sector agencies.
The Department has not identified any relevant Federal rules that
duplicate, overlap, or conflict with this proposed rule. However,
tangerines must meet the requirements as specified in the U.S.
Standards for Grades of Florida Tangerines (7 CFR 51.1810 through
51.1837) issued under the Agricultural Marketing Act of 1946 (7 U.S.C.
1621 through 1627).
In addition, the committee's meeting was widely publicized
throughout the citrus industry and all interested persons were invited
to attend the meeting and participate in committee deliberations on all
issues. Like all committee meetings, the May 22, 1998, meeting was a
public meeting and all entities, both large and small, were able to
express views on this issue. Interested persons are invited to submit
information on the regulatory and informational impacts of this action
on small businesses.
A 20-day comment period is provided to allow interested persons to
respond to this proposal. Twenty days is deemed appropriate because
handlers are expected to begin shipping Fallglo tangerines in early
October and any changes to the regulation implemented as a result of
this action should be announced as soon as possible so producers and
handlers can plan accordingly. All written comments timely received
will be considered before a final determination is made on this matter.
List of Subjects in 7 CFR Part 905
Grapefruit, Marketing agreements, Oranges, Reporting and
recordkeeping requirements, Tangelos, Tangerines.
For the reasons set forth in the preamble, 7 CFR part 905 is
proposed to be amended as follows:
PART 905--ORANGES, GRAPEFRUIT, TANGERINES, AND TANGELOS GROWN IN
FLORIDA
1. The authority citation for 7 CFR Part 905 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. In Sec. 905.105, paragraph (b) is revised to read as follows:
Sec. 905.105 Tangerine and grapefruit classifications.
* * * * *
(b) Pursuant to Sec. 905.5(m), the term ``variety'' or
``varieties'' includes Sunburst and Fallglo tangerines.
3. Section 905.306 is amended by adding a new entry for Fallglo
tangerines in paragraph (a), Table I, and in paragraph (b), Table II,
to read as follows:
Sec. 905.306 Orange, Grapefruit, Tangerine, and Tangelo Regulations.
(a) * * *
Table I
Minimum
Variety Regulation period Minimum Grade diameter
(inches)
(1) (2)........................ (3)........................ (4)
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* * * * * *
*
Tangerines
* * * * * *
*
Fallglo................................. On and after 10/1/98....... U.S. No. 1................. 2\6/16\
* * * * * *
*
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(b) * * *
[[Page 46711]]
Table II
Minimum
Variety Regulation period Minimum Grade diameter
(Inches)
(1) (2)........................ (3)........................ (4)
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* * * * * *
*
Tangerines
* * * * * *
*
Fallglo................................. On and after 10/1/98....... U.S. No. 1................. 2\6/16\
* * * * * *
*
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* * * * *
Dated: August 26, 1998.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 98-23513 Filed 9-1-98; 8:45 am]
BILLING CODE 3410-02-P
