98-25398. Nectarines and Peaches Grown in California; Relaxation of Quality Requirements for Fresh Nectarines and Peaches  

  • [Federal Register Volume 63, Number 183 (Tuesday, September 22, 1998)]
    [Rules and Regulations]
    [Pages 50461-50464]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 98-25398]
    
    
    
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    Federal Register / Vol. 63, No. 183 / Tuesday, September 22, 1998 / 
    Rules and Regulations
    
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    DEPARTMENT OF AGRICULTURE
    
    Agricultural Marketing Service
    
    7 CFR Parts 916 and 917
    
    [Docket No. FV98-916-2 IFR]
    
    
    Nectarines and Peaches Grown in California; Relaxation of Quality 
    Requirements for Fresh Nectarines and Peaches
    
    AGENCY: Agricultural Marketing Service, USDA.
    
    ACTION: Interim final rule with request for comments.
    
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    SUMMARY: This interim final rule relaxes ``CA Utility'' quality 
    requirements for California nectarines and peaches for the remainder of 
    the 1998 season. The ``CA Utility'' quality requirements are based on 
    minimum quality requirements established under the California 
    Agricultural Code, with a limitation on the amount of fruit meeting 
    U.S. No. 1 or higher grade requirements that may be present in each 
    container marked ``CA Utility.'' Currently, the ``CA Utility'' quality 
    requirement permits not more than 30 percent of nectarines or peaches 
    in any container to meet or exceed the requirements of U.S. No. 1. This 
    relaxation increases that limitation from 30 percent to not more than 
    40 percent except that at least one-quarter of the fruit grading U.S. 
    No. 1 in such containers must have non-scoreable blemishes. A non-
    scoreable blemish is a defect that does not cause the fruit to fail 
    U.S. No. 1 grade requirements. This rule will allow more U.S. No. 1 
    nectarines and peaches to be packed in containers marked ``CA 
    Utility,'' and is expected to benefit growers, handlers, and consumers.
    
    DATES: Effective September 23, 1998. Comments received by October 7, 
    1998 will be considered prior to issuance of any final rule.
    
    ADDRESSES: Interested persons are invited to submit written comments 
    concerning this final rule. Comments must be sent to the Docket Clerk, 
    Fruit and Vegetable Programs, AMS, USDA, P.O. Box 96456, room 2523-S, 
    Washington, DC 20090-6456; Fax: (202) 205-6632; or E-mail: 
    moabdocket__clerk@usda.gov. 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: Terry Vawter, Marketing Specialist, or 
    Kurt J. Kimmel, Regional Manager, California Marketing Field Office, 
    Marketing Order Administration Branch, Fruit and Vegetable Programs, 
    AMS, USDA, 2202 Monterey Street, suite 102B, Fresno, California 93721; 
    telephone: (209) 487-5901; Fax: (209) 487-5906 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) 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, P.O. Box 96456, Room 2525-S, 
    Washington, D.C. 20090-6456; telephone: (202) 720-2491, Fax: (202) 205-
    6632.
    
    SUPPLEMENTARY INFORMATION: This interim final rule is issued under 
    Marketing Agreement Nos. 124 and 85, and Marketing Order Nos. 916 and 
    917 [7 CFR Parts 916 and 917] regulating the handling of nectarines and 
    peaches grown in California, respectively, hereinafter referred to as 
    the ``orders.'' The orders 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 final 
    rule in conformance with Executive Order 12866.
        This final rule has been reviewed under Executive Order 12866, 
    Civil Justice Reform. This final rule is not intended to have 
    retroactive effect. This 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 the date of the entry of the ruling.
        This interim final rule relaxes, for the remainder of the 1998 
    season, the ``CA Utility'' quality requirement to allow more U.S. No. 1 
    grade nectarines and peaches in containers marked ``CA Utility''. 
    Currently, the term ``CA Utility'' means that not more than 30 percent 
    of the nectarines and peaches in any container meet or exceed the 
    requirements of the U.S. No. 1 grade, and meet other specified 
    requirements. This interim final rule increases that percentage to 40 
    percent except that at least one-quarter of the fruit grading U.S. No. 
    1 in such containers must have non-scoreable blemishes. A non-scoreable 
    blemish is a defect that will not cause the fruit to fail to meet the 
    requirements of U.S. No. 1. This relaxation will be in effect for the 
    remainder of the 1998 season, and will allow more U.S. No. 1 grade 
    fruit to be packed as ``CA Utility'' quality.
        The Nectarine Administrative Committee (NAC) and Peach Commodity 
    Committee (PCC) (committees) met on September 15, 1998, to discuss this 
    relaxation. At that time, the NAC voted without opposition to recommend 
    the increased percentage of U.S. No. 1 nectarines with non-scoreable 
    blemishes. The PCC voted with eight in favor and one opposed to 
    recommend a similar change. The member opposed believed that it was too 
    late in the season to make such a change, that such a change would
    
    [[Page 50462]]
    
    disadvantage those who had already shipped ``CA Utility'' fruit in 
    1998, and that more study and analysis of the situation was needed.
        Sections 916.52 and 917.41 of the orders authorize the 
    establishment of grade and quality requirements for nectarines and 
    peaches, respectively. Prior to the 1996 season, Sec. 916.356 of the 
    order's rules and regulations required nectarines to meet a modified 
    U.S. No. 1 grade. Specifically, nectarines were required to meet U.S. 
    No. 1 grade requirements, except there was a slightly tighter 
    requirement for scarring and a more liberal allowance for misshapen 
    fruit. Under Sec. 917.459 of the order's rules and regulations prior to 
    the 1996 season, peaches were also required to meet the requirements of 
    U.S. No. 1, except there was a more liberal allowance for open sutures 
    that were not ``serious damage.''
        The minimum grade, size, and maturity requirements in Sec. 916.356 
    applicable to shipments of California nectarines apply during the 
    period April 1 through October 31 each year. The minimum grade, size, 
    and maturity requirements in Sec. 917.459 applicable to shipments of 
    California peaches apply during the period April 1 through November 23 
    each year.
        Since the 1996 shipping season, the nectarine and peach regulations 
    have allowed ``CA Utility'' quality to be shipped during the regulatory 
    periods. Utility quality is a lower quality fruit than U.S. No. 1.
        Containers marked as ``CA Utility'' must be inspected by the 
    Federal or Federal-State Inspection Service and certified as meeting 
    the ``CA Utility'' quality requirements. Part of the inspection process 
    is to evaluate the fruit in accordance with the requirements of the 
    U.S. Standards for Grades of Nectarines, the U.S. Standards for Grades 
    of Peaches, and the orders. In conducting inspections, inspectors are 
    required to evaluate various blemishes. Some blemishes are serious or 
    severe enough to be ``scored'' as defects which are damaging to the 
    grade of the fruit, while some other blemishes are either not serious 
    or severe enough to affect the grade of the fruit. In the first 
    instance, the blemishes are termed ``scoreable'' defects; and in the 
    second instance, the blemishes are termed ``non-scoreable.'' It is the 
    recommendation of the committees that such non-scoreable blemishes must 
    be present on at least one-quarter of the 40 percent of the fruit 
    grading U.S. No. 1 in boxes marked ``CA Utility.''
        While containers marked ``CA Utility'' fruit are subject to relaxed 
    quality requirements, all other requirements of the orders must be met.
        In addition to the grade requirements, Secs. 916.350 and 917.442 
    require each package or container of nectarines and peaches meeting the 
    requirements of ``CA Utility,'' to be conspicuously marked with the 
    words ``CA Utility'' on a visible display panel.
        Through August 31 of the 1998 season, shipments of ``CA Utility'' 
    quality nectarines and peaches have averaged about 4 percent of total 
    shipments. In prior seasons, utility quality shipments have been less 
    than 2 percent. The increase this season is attributed to quality 
    problems resulting from heavy early season rains. Also, hail storms 
    later during the season damaged some fruit rendering it unsalable, 
    while some fruit sustained only moderate scarring. This is especially 
    true for nectarines, whose smooth skin does not provide the same 
    protection as the fuzzy exterior of peaches.
        Preliminary studies conducted by the NAC and PCC indicate that some 
    consumers, retailers, and foreign buyers found the lower-quality fruit 
    acceptable in some markets. Shipments of ``CA Utility'' nectarines 
    represented 1.1 percent of all nectarine shipments, or approximately 
    210,000 boxes in 1996. In 1997, shipments of ``CA Utility'' nectarines 
    represented 1.1 percent of all nectarine shipments, or approximately 
    230,000 boxes. Shipments of ``CA Utility'' peaches represented 1.9 
    percent of all peach shipments, or 366,000 boxes in 1996. In 1997, 
    shipments of ``CA Utility'' peaches represented 1.0 percent of all 
    peach shipments, or approximately 217,000 boxes. By contrast, shipments 
    of ``CA Utility'' nectarines represents 4.0 percent of all nectarine 
    shipments, or approximately 694,881 boxes by August 31 of the 1998 
    season. Shipments of ``CA Utility'' peaches represents 4.0 percent of 
    all peach shipments, or approximately 544,065 boxes by August 31 of the 
    1998 season.
        This rule amends Secs. 916.356 and 917.459 by revising paragraph 
    (a)(1) under each section to allow not more than 40 percent U.S. No. 1 
    grade fruit to be packed in containers marked as ``CA Utility'' except 
    that at least one-quarter of the fruit grading U.S. No. 1 in such 
    container must have non-scoreable blemishes.
        At the September 15, 1998, committee meetings, comments supporting 
    the recommendation were made by handlers who had experienced incidents 
    where the percentage of U.S. No. 1 fruit contained in their ``CA 
    Utility'' boxes was found to be higher than permitted by the orders' 
    rules and regulations. In those instances, they were forced to repack 
    the boxes, move blemished fruit to boxes containing U.S. No. 1 fruit, 
    or discard or donate the fruit.
        At least one handler complained that the fruit with non-scoreable 
    blemishes was unsightly in the type of U.S. No. 1 box he offered to the 
    marketplace and to his customers. His preference was to place the fruit 
    with non-scoreable blemishes in boxes marked ``CA Utility.'' The 
    limitation of not more than 30 percent U.S. No. 1 fruit in boxes marked 
    ``CA Utility'' became a greater hindrance as the season progressed. The 
    handler noted that an unseasonable morning rain had recently caused 
    dark stains on the skin of nectarines, rendering them unsuitable for 
    inclusion in his U.S. No. 1 boxes. He preferred including such fruit in 
    the ``CA Utility'' boxes, but doing so caused the ``CA Utility'' boxes 
    to contain more than the 30 percent U.S. No. 1 fruit permissible.
        A niche market exists for utility quality fruit and an opportunity 
    should be made available to market somewhat better quality ``CA 
    Utility'' fruit to meet demand. Allowing ten percent more U.S. No. 1 
    grade fruit to be packed as ``CA Utility'' quality requirements would 
    allow more fruit to be marketed as ``CA Utility'' if handlers prefer to 
    do so. ``CA Utility'' quality fruit is generally made available at 
    lower prices to especially benefit lower-income consumers.
        Some committee members initially continued to support limiting the 
    amount of U.S. No. 1 grade fruit that can be included in a utility pack 
    to 30 percent of the total in any container to maintain differences 
    between U.S. No. 1 containers and ``CA Utility'' containers. However, 
    after further discussion, it was agreed that a greater percentage of 
    U.S. No. 1 in a ``CA Utility'' container would not be confusing if such 
    fruit is also blemished. It was, therefore, agreed that an additional 
    10 percent U.S. No. 1 should be permitted except that every piece of 
    fruit in that 10 percent must possess a non-scoreable blemish. This 
    relaxation will be in effect for the remainder of the 1998 season. The 
    boxes marked ``CA Utility'' would be clearly distinct from boxes 
    containing U.S. No. 1 grade. Failure to provide a clear distinction 
    could cause confusion in the marketplace and would not meet the goal of 
    providing low-cost fruit to low-income consumers. It is the opinion of 
    the committees that this relaxation will not cause confusion among 
    buyers.
        Data on recent production and shipments of California nectarines 
    and peaches appear to indicate that ``CA Utility'' quality fruit can be 
    marketed
    
    [[Page 50463]]
    
    successfully without interfering with sales of higher quality fruit. In 
    fact, some handlers noted that they used the ``CA Utility'' box as a 
    ``safety net.'' Fruit which was not good enough to meet their own 
    criteria for packing in U.S. No. 1 boxes could be better utilized in 
    boxes of ``CA Utility.'' The advent of ``CA Utility'' quality 
    requirements has given handlers increased flexibility to improve the 
    overall appearance of their U.S. No. 1 shipments.
        For these reasons, the NAC and PCC recommended that for the 
    remainder of the 1998 season that the percentage of U.S. No. 1 
    nectarines and peaches permitted in containers marked as ``CA Utility'' 
    quality be increased from 30 percent to 40 percent except that at least 
    one-quarter of the fruit grading U.S. No. 1 in such containers must 
    have non-scoreable blemishes. This relaxation will be in effect for the 
    remainder of the 1998 season. The committees also voted to review the 
    percentages during the winter.
        Pursuant to the 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 300 California nectarine and peach handlers 
    subject to regulation under the orders covering nectarines and peaches 
    grown in California, and about 1,800 producers of these fruits in 
    California. Small agricultural service firms, which includes handlers, 
    are defined by the Small Business Administration [13 CFR 121.601] as 
    those whose annual receipts are less than $5,000,000. Small 
    agricultural producers have been defined as those having annual 
    receipts of less than $500,000. A majority of these handlers and 
    producers may be classified as small entities.
        Under Secs. 916.356 and 917.459 of the orders, grade and size 
    requirements are established for fresh shipments of California 
    nectarines and peaches, respectively. Such requirements are in effect 
    during the period April 1 through October 31 each year for nectarines, 
    and April 1 through November 23 for peaches. This rule relaxes, for the 
    remainder of the 1998 season, the definition of the ``CA Utility'' 
    quality for California nectarines and peaches. The ``CA Utility'' 
    quality requirement is based on minimum quality requirements 
    established under the California Agricultural Code, with a limitation 
    on the amount of fruit meeting U.S. No. 1 or higher grade requirements 
    that may be contained in the utility pack. Currently, the ``CA 
    Utility'' quality requirement, permits not more than 30 percent of the 
    peaches in any container to meet or exceed the requirements of a U.S. 
    No. 1. This relaxation increases that percentage to not more than 40 
    percent except that at least one-quarter of the fruit grading U.S. No. 
    1 in such container must have non-scoreable blemishes. A non-scoreable 
    blemish is a defect that does not cause the fruit to fail to meet U.S. 
    No. 1 grade requirements. This rule is expected to benefit growers, 
    handlers, and consumers.
        Since the 1996 shipping season, the nectarine and peach regulations 
    have allowed ``CA Utility'' fruit to be shipped during the regulatory 
    periods. Prior to the 1996 season, Sec. 916.356 of the order's rules 
    and regulations required nectarines to meet a modified U.S. No. 1 
    grade. Specifically, nectarines were required to meet U.S. No. 1 grade 
    requirements, except there was a slightly tighter requirement for 
    scarring and a more liberal allowance for misshapen fruit. Under 
    Sec. 917.459 of the order's rules and regulations prior to the 1996 
    season, peaches were also required to meet the requirements of a U.S. 
    No. 1 grade, except there was a more liberal allowance for open sutures 
    that were not ``serious damage. ``CA Utility'' quality is a lower-
    quality fruit than U.S. No. 1 and has been regulated since its 
    inception in 1996. Through August 31 of the 1998 season, shipments of 
    utility quality for both nectarines and peaches have averaged about 4 
    percent of total shipments. In prior seasons, utility quality shipments 
    have been in the 1 to 2 percent range. The increase so far this season 
    is mostly attributed to quality problems resulting from heavy early 
    season rains.
        A niche market exists for ``CA Utility'' quality fruit and the 
    opportunity should be made available to market somewhat better-quality 
    ``CA Utility'' fruit to meet demand.
        According to comments made at the meeting on September 15, 1998, 
    changing the requirements now to allow additional U.S. No. 1 fruit to 
    be packed in ``CA Utility'' containers would not disadvantage those 
    handlers who have already finished for the season. Those handlers were 
    able to put fruit grading U.S. No. 1 into their U.S. No. 1 containers. 
    Since they would have likely wanted to pack such fruit in these 
    containers to receive the higher return anticipated for U.S. No. 1 
    fruit, they have not been harmed economically. Therefore, no harm has 
    been done by implementing this relaxation this late in the season.
        Therefore, the NAC and PCC recommended changing the ``CA Utility'' 
    quality at their September 15, 1998, meetings by modifying the 
    percentage of U.S. No.1 fruit in each box. The committees also voted to 
    review the percentages during the winter.
        In Secs. 916.350 and 917.442 of the orders regulating nectarines 
    and peaches, respectively, lower-quality nectarines and peaches were 
    authorized for shipment as ``CA Utility'' as an experiment for the 1996 
    season only. Such authorization was continued during the 1997 and 1998 
    seasons. This rule changes the percentage of U.S. No. 1 nectarines and 
    peaches which can be packed in a container marked ``CA Utility'' for 
    the remainder of the 1998 season except that the fruit grading U.S. No. 
    1 must have a specified percentage of non-scoreable blemishes.
        During the 1996 season, the Department authorized the shipment of 
    nectarines and peaches which were of a lower quality than the minimum 
    permitted for previous seasons. During 1996, there were approximately 
    210,000 boxes of nectarines and approximately 366,000 boxes of peaches 
    packed as ``CA Utility,'' or 1.1 percent and 1.9 percent of fresh 
    shipments, respectively. During 1997, there were approximately 230,000 
    boxes of nectarines and 217,000 boxes of peaches packed as ``CA 
    Utility,'' or 1.1 percent and 1.0 percent of fresh shipments, 
    respectively. By contrast, shipments of ``CA Utility'' nectarines 
    represents 4.0 percent of all nectarine shipments, or approximately 
    694,881 boxes by August 31 of the 1998 season. Shipments of ``CA 
    Utility'' peaches represents 4.0 percent of all peach shipments, or 
    approximately 544,065 boxes by August 31 of the 1998 season. Continued 
    availability of ``CA Utility'' quality fruit with the new relaxations 
    is expected to have a positive impact on producers, handlers, and 
    consumers by permitting more nectarines and peaches to be shipped into 
    fresh market channels, without adversely impacting the market for 
    higher quality fruit.
        The committees considered several alternatives at the meeting. One 
    alternative was to leave the percentage of U.S. No. 1 nectarines and 
    peaches permitted in ``CA Utility'' containers
    
    [[Page 50464]]
    
    unchanged. It was determined that alternative would not address the 
    problem which faced the industry. The NAC and PCC also considered 
    increasing the 30 percent U.S. No. 1 tolerance to not more than 40 
    percent or to not more than 50 percent, but determined that such a 
    relaxation could render ``CA Utility'' boxes less distinctive from U.S. 
    No. 1 and create confusion in the marketplace. Another alternative 
    included a requirement that at least 90 percent of the individual 
    fruits in all boxes marked with ``CA Utility'' possess defects. Such a 
    requirement would create a box of fruit which would be distinct from 
    U.S. No. 1 due to a greater number of defects present. However, this 
    alternative was determined to be unacceptable because it represented 
    too radical a change of ``CA Utility'' quality given the emergency 
    nature of the recommendation. This alternative fails to offer a sound 
    basis for comparison with the current requirement of not more than 30 
    percent U.S. No. 1 because it does not reference the U.S. No. 1 grade. 
    Such comparison may be necessary as the committees continue to study 
    marketplace reaction to changes in quality requirements of ``CA 
    Utility.'' fruit.
        This action does not impose any additional reporting and 
    recordkeeping requirements on either small or large 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. In accordance with 
    the Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35), the 
    information collection requirements that are contained in Parts 916 and 
    917 have been previously approved by the Office of Management and 
    Budget (OMB) and have been assigned OMB Nos. 0581-0072 and 0581-0080, 
    respectively.
        The Department has not identified any relevant Federal rules that 
    duplicate, overlap, or conflict with this rule. However, as previously 
    stated, nectarines and peaches under the orders have to meet certain 
    requirements set forth in the standards issued under the Agricultural 
    Marketing Act of 1946 (7 U.S.C. 1621 through 1627). Standards issued 
    under the Agricultural Marketing Act of 1946 are otherwise voluntary.
        In addition, the committees' meetings were widely publicized 
    throughout the nectarine and peach industries and all interested 
    parties were invited to attend the meetings and participate in 
    committee deliberations on all issues. Like all committee meetings, the 
    September 15, 1998, meetings were public meetings and all entities, 
    both large and small, were able to express views on these issues. The 
    committees themselves are composed of producers, the majority of whom 
    are small entities. Finally, interested persons are invited to submit 
    information on the regulatory and informational impacts of this action 
    on small businesses.
        This rule reflects the Department's appraisal of the need to revise 
    the quality requirements for California nectarines and peaches. The 
    Department believes that this rule will have a beneficial impact on 
    producers, handlers, and consumers of California nectarines and 
    peaches.
        After consideration of all relevant matter presented, including the 
    information and recommendations submitted by the Committees, and other 
    available information, it is hereby found that this rule, as 
    hereinafter set forth, will tend to effectuate the declared policy of 
    the Act.
        It is further found that good cause exists for not postponing the 
    effective date of this rule until 30 days after publication in the 
    Federal Register (5 U.S.C. 553) because this rule should apply to as 
    many shipments of California nectarines and peaches as possible. The 
    shipping seasons for both California nectarines and peaches began on 
    April 1, 1998. To maximize the effectiveness of this relaxation prior 
    to the end of the season, this rule needs to be in place as soon as 
    possible. Further, handlers are aware of this rule, which was 
    recommended and discussed in public meetings of the committees and no 
    additional time is needed for those handlers to comply with the relaxed 
    quality requirements. Finally, a 15-day comment period is provided for 
    in this interim final rule, and any written comments received will be 
    considered in the finalization of this interim final rule. A 15-day 
    comment period is appropriate because the end of the season is quickly 
    approaching.
    
    List of Subjects
    
    7 CFR Part 916
    
        Marketing agreements, Nectarines, Reporting and recordkeeping 
    requirements.
    
    7 CFR Part 917
    
        Marketing agreements, Peaches, Pears, Reporting and recordkeeping 
    requirements.
    
        For the reasons set forth in the preamble, 7 CFR Parts 916 and 917 
    are amended as follows:
        1. The authority citation for 7 CFR Parts 916 and 917 continues to 
    read as follows:
    
        Authority: 7 U.S.C. 601-674.
    
    PART 916--NECTARINES GROWN IN CALIFORNIA
    
        2. In Sec. 916.356, paragraph (a)(1) introductory text, the last 
    proviso in the first sentence and the last phrase are revised to read 
    as follows:
    
    
    Sec. 916.356  California Nectarine Grade and Size Regulation.
    
        (a) * * *
        (1) * * * Provided further, That, during the period September 23, 
    1998, through October 31, 1998, any handler may handle nectarines if 
    such nectarines meet ``CA Utility'' quality requirements. The term ``CA 
    Utility'' means that not more than 40 percent of the nectarines in any 
    container meet or exceed the requirements of the U.S. No. 1 grade, 
    except that at least one-quarter of the fruit grading U.S. No. 1 grade 
    shall have non-scoreable blemishes as determined when applying the U.S. 
    Standards for Grades of Nectarines; and that such nectarines are mature 
    and are:
    * * * * *
    
    PART 917--FRESH PEARS AND PEACHES GROWN IN CALIFORNIA
    
        3. In Sec. 917.459, paragraph (a)(1) introductory text, the last 
    proviso in the first sentence and the last phrase are revised to read 
    as follows:
        (a) * * *
        (1) * * * Provided further, That during the period September 23, 
    1998, through November 23, 1998, any handler may handle peaches if such 
    peaches meet ``CA Utility'' requirements. The term ``CA Utility'' means 
    that not more than 40 percent of the peaches in any container meet or 
    exceed the requirements of the U.S. No. 1 grade, except that at least 
    one-quarter of the fruit grading U.S. No. 1 grade shall have non-
    scoreable blemishes as determined when applying the U.S. Standards for 
    Grades of Peaches; and that such peaches are mature and are:
    * * * * *
        Dated: September 18, 1998.
    Robert C. Keeney,
    Deputy Administrator, Fruit and Vegetable Programs.
    [FR Doc. 98-25398 Filed 9-21-98; 8:45 am]
    BILLING CODE 3410-02-P
    
    
    

Document Information

Effective Date:
9/23/1998
Published:
09/22/1998
Department:
Agricultural Marketing Service
Entry Type:
Rule
Action:
Interim final rule with request for comments.
Document Number:
98-25398
Dates:
Effective September 23, 1998. Comments received by October 7, 1998 will be considered prior to issuance of any final rule.
Pages:
50461-50464 (4 pages)
Docket Numbers:
Docket No. FV98-916-2 IFR
PDF File:
98-25398.pdf
CFR: (1)
7 CFR 916.356