[Federal Register Volume 61, Number 54 (Tuesday, March 19, 1996)]
[Rules and Regulations]
[Pages 11127-11129]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-6348]
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DEPARTMENT OF AGRICULTURE
7 CFR Part 925
[Docket No. FV95-925-1IFR]
Grapes Grown in a Designated Area of Southeastern California;
Interim Final Rule to Revise Container Requirements
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim final rule.
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SUMMARY: This rule adds two new containers to the list of containers
authorized for use by table grape handlers regulated under the
marketing order. This rule also reduces the minimum net weight of
containers of California table grapes from 22 pounds to 20 pounds and
for grapes packed in poly bags from 20 pounds to 18 pounds. The
marketing order regulates the handling of table grapes grown in a
designated area of Southeastern California. The marketing order is
locally administered by the California Desert Grape Administrative
Committee (CDGAC). This rule allows for more
[[Page 11128]]
efficient use of containers and helps handlers meet industry needs.
DATES: Effective on March 19, 1996; comments must be received by April
18, 1996 will be considered prior to issuance of a final rule.
ADDRESSES: Interested persons are invited to submit written comments
concerning this rule. Comments must be submitted in triplicate to the
Docket Clerk, Fruit and Vegetable Division, AMS, USDA, P. O. Box 96456,
Room 2523-S, Washington, DC 20090-6456, or by facsimile at (202) 720-
5698. Comments should reference this docket number and the date and
page number of this issue of the Federal Register and will be made
available for public inspection in the Office of the Docket Clerk
during regular business hours.
FOR FURTHER INFORMATION CONTACT: Charles L. Rush, Marketing Order
Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O.
Box 96456, room 2526-S, Washington, DC 20090-6456, telephone (202) 690-
3670; or Rose M. Aguayo, California Marketing Field Office, Marketing
Order Administration Branch, Fruit and Vegetable Division, AMS, USDA,
2202 Monterey Street, Suite 102B, Fresno, California 93721; telephone
(209) 487-5901.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Order
No. 925 [7 CFR Part 925], as amended, regulating the handling of table
grapes grown in a designated area of Southeastern California,
hereinafter referred to as the ``order.'' The order is effective under
the Agricultural Marketing Agreement Act of 1937, as amended [7 U.S.C.
601-674], hereinafter referred to as the ``Act.''
The Department of Agriculture (Department) is issuing this interim
final rule in conformance with Executive Order 12866.
This interim rule has been reviewed under Executive Order 12778,
Civil Justice Reform. This rule is not intended to have retroactive
effect. This interim final rule would 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 in equity to review the
Secretary's ruling on the petition, provided a bill in equity is filed
not later than 20 days after date of the entry of the ruling.
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA), the Administrator of the Agricultural Marketing Service
(AMS) has considered the economic impact of this rule on small
entities.
The purpose of the RFA is to fit regulatory actions to the scale of
business subject to such actions in order that small businesses will
not be unduly or disproportionately burdened. Marketing orders issued
pursuant to the Act, and rules issued thereunder, are unique in that
they are brought about through group action of essentially small
entities acting on their own behalf. Thus, both statutes have small
entity orientation and compatibility.
There are approximately 20 handlers of California table grapes
subject to regulation under the order and approximately 80 table grape
producers in the production area. Small agricultural service firms are
defined by the Small Business Administration (13 CFR 121.601) as those
whose annual receipts are less than $5,000,000, and small agricultural
producers have been defined as those having annual receipts of less
than $500,000. A majority of handlers and producers are classified as
small entities.
This action is in accordance with Sec. 925.52(a)(4) of the order.
This section authorizes the Secretary to fix the size, capacity,
weight, dimensions, markings, materials, and pack of containers which
may be used in the handling of grapes.
Currently, Sec. 925.304(b)(2) of the regulations specifies that the
minimum net weight requirement for grapes in any container, except for
containers containing grapes packed in sawdust, cork, excelsior, or
similar packing material, or packed in bags or wrapped in plastic or
paper, and experimental containers, shall be 22 pounds based on the
average net weight of grapes in a representative sample of containers.
Containers of grapes packed in bags or wrapped in plastic or paper
prior to being placed in these containers are required to meet a net
weight requirement of 20 pounds.
Section 925.304(b)(1) of the regulations specifies the dimensions
of six containers that may be used by handlers of table grapes and
authorizes the use of other types and sizes of containers on an
experimental basis.
The CDGAC met on November 27, and December 4, 1995, and unanimously
recommended changes in current container requirements. Specifically,
the CDGAC recommended reducing the minimum net weight of containers
from 22 to 20 pounds and for containers of grapes wrapped or packed in
poly bags from 20 to 18 pounds, effective April 20, 1996. The CDGAC
also unanimously recommended adding two new containers (38S, 12 x 20
inches) and (38T, 13 \1/8\ x 15 \7/8\ inches) to the list of authorized
containers. These changes are intended to improve the quality of grapes
delivered to consumers and reduce handling costs.
The genesis for discussion of revising containers used to pack
grapes began about 6 years ago when the recyclability of packaging
materials became of interest to consumers worldwide and then to
retailers who bore the brunt of consumers' concern. In addition to the
environmental concern expressed by consumers, retailers were concerned
about the increasing costs of disposing of packing and shipping
materials.
Simultaneously, in an effort to differentiate themselves in the
marketplace, many in the retail industry began demanding that grape
growers provide custom packs. One customer wanted only a certain type
of bag, another wanted only 5-kilo bags, another wanted bags with
nothing printed on them, while yet another wanted a special store code.
These kinds of demands from the retail and food service industry
led to a great deal of packaging experimentation within the California
grape industry. It also led to the realization that it had been 25
years since there had been any quantifiable packaging research. The
industry decided to take a critical look at grape packaging and
determine if current practices were getting the product to the retailer
and ultimately the consumer in the best possible condition; and if not,
what changes needed to be made to improve delivery. Toward that end,
the California Table Grape Commission funded a three-year research
project designed to answer a simple question: what types of containers
get grapes to the consumer in the best possible condition?
Grapes are a fragile product. The current method of packing is a
holdover from 25 years ago when grapes were sold at auctions and it was
considered a marketing advantage to overpack the box so that when
buyers looked at the box it was bulging with fruit. Too often though,
what they did not see was the condition of the fruit inside; crushed,
[[Page 11129]]
split or falling off the stem. In addition, the standard lug box in use
today was designed to fit railroad cars. Shipping grapes by rail car is
a part of the industry's picturesque past.
The study of table grape packaging was conducted by the University
of California at Davis and the University of California at Kearney
Agricultural Center at Parlier. The objective of the study was to
develop knowledge concerning packaging that allows the movement of
table grapes from the field to the consumer in the best possible
condition.
The study looked at multiple varieties of grapes grown in
California, packed in cartons of a wide variety of materials,
dimensions, and packing depths. The study monitored numerous shipments
from the field to the grocery store. The conclusion of the study was
that the California table grape industry should reduce the weight of
its containers by 2 pounds in order to get the fruit delivered to
consumers in the best possible condition. At the reduced weight, the
damage to the grapes, particularly in terms of bruising, splitting and
shattering, decreases. Table grapes of most varieties suffered
considerable damage when packed at net weights of 22 or 23 pounds. The
damage was reduced considerably when the pack weights were reduced to
20 to 21 pounds.
Thus, the CDGAC's recommendation to reduce the minimum net weight
requirements is expected to result in higher quality grapes being
offered to consumers. This should increase satisfaction, strengthen
demand, and improve returns to growers and handlers.
Currently, most grapes packed in California are palletized on 35-
x 42-inch or 53- x 42-inch pallets prior to shipment. When received by
wholesalers or retailers, the grapes are unloaded and restacked on 48-
x 40-inch pallets. In response to these concerns by their customers,
grape handlers are beginning to discontinue use of the 35- x 42- inch
or 53- x 42-inch pallets.
Grocery and wholesale warehouse operations use 48- x 40-inch
pallets as the standard pallet for most products. The bulk of product
sold at retail outlets (e.g., cereal, paper products, canned goods,
etc.) are dry goods. These products are generally shipped on 48- x 40-
pallets. Consequently, the distribution channel is set up to
accommodate 48- x 40-inch pallets.
Nonstandard pallets such as those used by grape handlers must be
disposed of at the receivers' expense. However, with the use of 48-
x 40-inch pallets, which can be recycled, there should be a reduction
in expenses associated with pallets. The recycling program allows the
receiver to use the pallet more than once or remove it from the waste
stream to use or sell.
These changes in container requirements are supported by the
California Department of Agriculture, the California Grape and Tree
Fruit League, the California Table Grape Commission, the Food Marketing
Institute, and the National Association of Perishable Agricultural
Receivers. These organizations have all agreed that the reduction in
net weight is necessary to facilitate the implementation of an
industry-wide adoption of the standardized 48- x 40-inch pallet and the
incidence of damage to fruit due to over packing.
Through the research conducted the CDGAC determined that other
container size and net weight options available were not in the best
interest of the industry. Further, wholesalers and retailers support
the recommended changes, and believe it is the best option.
Thus, this rule allows the industry to use more efficient
containers and provides handlers with more flexibility in packing table
grapes. Imported table grapes will not be affected by this rule.
Based on the above, the Administrator of the AMS has determined
that this action will not have a significant economic impact on a
substantial number of small entities.
After consideration of all relevant material presented, including
the CDGAC's recommendation, and other available information, it is
found that this interim final rule, as hereinafter set forth, will tend
to effectuate the declared policy of the Act.
Pursuant to 5 U.S.C. 553, it is also found and determined, upon
good cause, that it is impracticable, unnecessary and contrary to the
public interest to give preliminary notice prior to putting this rule
into effect, and that good cause exists for not postponing the
effective date of this rule until 30 days after publication in the
Federal Register because: (1) This action relaxes handling requirements
currently in effect for table grapes grown in designated areas of
Southeastern California; (2) California table grape handlers are aware
of this action which was unanimously recommended by the CDGAC at a
public meeting, and they will need no additional time to comply with
the relaxed requirements (since they have the option of continuing to
use previously approved containers; (3) California table grape
shipments begin approximately April 20, 1996, and this rule needs to be
in effect as soon as possible; and (4) this rule provides a 30-day
comment period and any comments received will be considered prior to
finalization of this rule.
List of Subjects in 7 CFR Part 925
Grapes, Marketing agreements and orders, reporting and
recordkeeping requirements.
For the reasons set forth in the preamble, 7 CFR part 925 is
amended to read as follows:
PART 925--GRAPES GROWN IN A DESIGNATED AREA OF SOUTHEASTERN
CALIFORNIA
1. The authority citation for 7 CFR part 925 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. In Sec. 925.304, paragraph (b)(2) is revised and paragraphs
(b)(1)(vi) and (b)(1) (vii) are redesignated as paragraphs (b)(1)(vii)
and (vii) and new paragraphs (b)(1) (vi) and (vii) are added to read as
follows:
Sec. 925.304 California Desert Grape Regulation 6.
* * * * *
(b) * * *
(1) * * *
(vi) Grape lug with dimensions in inches of 5 to 9 inches (inside)
x 11\11/16\ to 12 (outside) x 19\11/16\ to 20 (outside), specified as
container 38S;
(vii) Grape lug with dimensions in inches of 6\5/8\ to 7\1/2\
(inside) x 13\1/8\ (outside) x 15\7/8\ (outside), specified as
container 38T;
* * * * *
(2) The minimum net weight of grapes in any such containers, except
for containers containing grapes packed in sawdust, cork, excelsior or
similar packing material, or packed in bags or wrapped in plastic or
paper, and experimental containers, shall be 20 pounds based on the
average net weight of grapes in a representative sample of containers.
Containers of grapes packed in bags or wrapped in plastic or paper
prior to being placed in these containers shall meet a minimum net
weight requirement of 18 pounds.
* * * * *
Dated: March 11, 1996.
Eric M. Forman,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 96-6348 Filed 3-18-96; 8:45 am]
BILLING CODE 3410-02-P