[Federal Register Volume 61, Number 163 (Wednesday, August 21, 1996)]
[Rules and Regulations]
[Pages 43139-43141]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-21331]



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 Rules and Regulations
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  Federal Register / Vol. 61, No. 163 / Wednesday, August 21, 1996 / 
Rules and Regulations  

[[Page 43139]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 906

[Docket No. FV96-906-3IFR]


Oranges and Grapefruit Grown in the Lower Rio Grande Valley in 
Texas; Interim Final Rule To Revise Pack and Size Requirements

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule.

-----------------------------------------------------------------------

SUMMARY: This interim final rule revises pack requirements for 
grapefruit and certain types of oranges under the marketing order 
covering oranges and grapefruit grown in the Lower Rio Grande Valley in 
Texas to allow larger sizes of fruit to be marketed in fresh channels. 
This rule also reduces current minimum size requirements for Texas 
grapefruit. These actions were recommended by the Texas Valley Citrus 
Committee (TVCC), the agency responsible for local administration of 
the marketing order. These changes will enable the industry to market a 
wider range of sizes of citrus fruit in fresh market channels, thereby 
meeting consumer demand, increasing sales, and improving returns to 
growers.

DATES: Effective on August 22, 1996; comments received by September 20, 
1996 will be considered prior to issuance of a final rule.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this rule. Comments must be submitted in triplicate to the 
Docket Clerk, Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, 
Room 2523-S, Washington, DC 20090-6456, or by facsimile at (202) 720-
5698. Comments should reference this docket number and the date and 
page number of this issue of the Federal Register and will be made 
available for public inspection in the Office of the Docket Clerk 
during regular business hours.

FOR FURTHER INFORMATION CONTACT: Charles L. Rush, Marketing Order 
Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O. 
Box 96456, room 2526-S, Washington, DC 20090-6456, telephone (202) 690-
3670; or Belinda G. Garza, McAllen Marketing Field Office, Marketing 
Order Administration Branch, Fruit and Vegetable Division, AMS, USDA, 
1331 E. Hackberry Street, McAllen, Texas 78501; telephone (210) 682-
2833. Small businesses may request information on compliance with this 
regulation by contacting: Jay Guerber, Marketing Order Administration 
Branch, Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, Room 
2523-S, Washington, DC 20090-6456; telephone (202) 720-2491, Fax # 
(202) 720-5698.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement and Order No. 906 [7 CFR Part 906], as amended, regulating 
the handling of oranges and grapefruit grown in the Lower Rio Grande 
Valley in Texas, hereinafter referred to as the ``order.'' The order is 
effective under the Agricultural Marketing Agreement Act of 1937, as 
amended [7 U.S.C. 601-674], hereinafter referred to as the ``Act.''
    The Department of Agriculture (Department) is issuing this interim 
final rule in conformance with Executive Order 12866.
    This interim final rule has been reviewed under Executive Order 
12988, Civil Justice Reform. This interim final rule is not intended to 
have retroactive effect. This interim final rule will not preempt any 
State or local laws, regulations, or policies, unless they present an 
irreconcilable conflict with this rule.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 608c(15)(A) of the 
Act, any handler subject to an order may file with the Secretary a 
petition stating that the order, any provision of the order, or any 
obligation imposed in connection with the order is not in accordance 
with law and request a modification of the order or to be exempted 
therefrom. A handler is afforded the opportunity for a hearing on the 
petition. After the hearing the Secretary would rule on the petition. 
The Act provides that the district court of the United States in any 
district in which the handler is an inhabitant, or has his or her 
principal place of business, has jurisdiction to review the Secretary's 
ruling on the petition, provided an action is filed not later than 20 
days after date of the entry of the ruling.
    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA), the Agricultural Marketing Service (AMS) has considered the 
economic impact of this rule on small entities.
    The purpose of the RFA is to fit regulatory actions to the scale of 
business subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and rules issued thereunder, are unique in that 
they are brought about through group action of essentially small 
entities acting on their own behalf. Thus, both statutes have small 
entity orientation and compatibility.
    There are approximately 20 handlers of oranges and grapefruit 
subject to regulation under the order and approximately 2,000 orange 
and grapefruit producers in the production area. Small agricultural 
service firms are defined by the Small Business Administration (13 CFR 
121.601) as those whose annual receipts are less than $5,000,000, and 
small agricultural producers have been defined as those having annual 
receipts of less than $500,000. A majority of Texas citrus handlers and 
producers may be classified as small entities.
    This interim final rule revises pack requirements for grapefruit 
and certain varieties of oranges to allow larger sizes to be marketed 
in fresh channels. It also reduces the minimum size requirements in 
effect for grapefruit. This rule will enable handlers to market a 
broader range of sizes of citrus fruit in fresh market outlets, thereby 
meeting consumer demand, increasing fresh fruit sales, and enhancing 
returns to handlers and producers.
    Therefore, the AMS has determined that this action will not have a 
significant economic impact on a substantial number of small entities. 
Interested persons are invited to submit information on the regulatory 
and informational impacts of this action on small businesses.
    This action is in accordance with Sec. 906.40(a) of the order. This 
section authorizes the Secretary to limit the

[[Page 43140]]

handling of particular grades, sizes, qualities, maturities, or packs 
of any or all varieties of fruit during a specified period or periods. 
Currently, minimum grade and size requirements, as well as pack and 
container requirements, are in effect for both grapefruit and oranges 
throughout the season. Shipments for certain purposes, including 
processing, are exempt from these requirements.
    The TVCC met on May 29, 1996, and unanimously recommended changes 
in current pack and minimum size requirements. The TVCC meets prior to 
and during each season to review the handling regulations effective on 
a continuous basis for each citrus fruit regulated under the order. 
TVCC meetings are open to the public, and interested persons may 
express their views at these meetings. The Department reviews TVCC 
recommendations and information, as well as information from other 
sources, and determines whether modification, suspension, or 
termination of the handling regulations would tend to effectuate the 
declared policy of the Act.

Revision of Pack Requirements

    Pack requirements for oranges and grapefruit are in effect under 
Sec. 906.340 of the order's rules and regulations. These requirements 
provide, among other things, that oranges and grapefruit be packed in 
accordance with certain size designations. These size designations are 
defined in terms of minimum and maximum diameters.
    Oranges are divided into two categories for the purpose of pack 
regulations: (1) Navel, Valencia and similar late-type oranges, and (2) 
all other oranges. Navel, Valencia and similar late-type oranges must 
be packed in accordance with 13 size designations. The smallest of 
these is Size 324, which ranges from 2\1/16\ to 2\8/16\ inches in 
diameter. The largest size defined is Size 46, which ranges from 4\3/
16\ to 5 inches in diameter. Oranges other than navel, Valencia and 
similar late-type oranges are required to be packed in accordance with 
the various pack sizes in section 51.691(c) of the United States 
Standards for Grades of Oranges (Texas and States other than Florida, 
California, and Arizona), hereinafter referred to as the ``orange 
standards.''
    The orange standards define seven pack sizes, from Size 324 (2\3/
16\ to 2\8/16\ inches in diameter) to Size 100 (3\7/16\ to 3\13/16\ 
inches in diameter). To allow for variations incident to proper 
packing, a tolerance for undersized and oversized fruit is provided. 
The tolerance is in terms of the number of fruit in a sample that may 
be off-size--with the actual number increasing as the sample size 
increases. Otherwise oversized oranges other than navel, Valencia and 
similar late-type oranges would be diverted to exempt outlets, such as 
processing.
    The TVCC recommended revising the orange pack regulations to allow 
all types of oranges to be packed in the full range of sizes--from Size 
324 to Size 46. Thus, this rule revises Section 906.340(a)(2)(i)(a), 
which specifies pack requirements for oranges other than navel, 
Valencia and similar late-type oranges, to define the 13 size 
designations authorized for such oranges. The seven smallest sizes are 
defined in the same way they are in the orange standards. (The minimum 
diameters are \2/16\ inch larger than those specified for navels, 
Valencias and similar late-type oranges, while the maximum diameters 
are the same.) The six sizes added for these oranges are defined 
similarly (that is, the minimum diameters differ, but the maximum 
diameters are the same). The differences in the minimum diameters take 
into account varietal differences between these two categories of 
oranges and current industry practice.
    Grapefruit are required to be packed within the diameter limits 
specified for the various pack sizes defined in Sec. 51.630(c) of the 
United States Standards for Grades of Grapefruit (Texas and States 
other than Florida, California, and Arizona), hereinafter referred to 
as the grapefruit standards. Exceptions are that the minimum diameter 
for pack size 96 grapefruit is 3\9/16\ inches, and for pack size 112 
grapefruit, the minimum diameter is 3\5/16\ inches.
    The grapefruit standards define eight pack sizes. The smallest is 
Size 125/126, which ranges from a minimum of 3 inches to a maximum of 
3\8/16\ inches in diameter. The largest is Size 46 which ranges from 
4\5/16\ to 5 inches in diameter. This rule adds a new, larger Size 36 
grapefruit, which ranges in size from 4\15/16\ to 5\9/16\ inches in 
diameter.
    Improved irrigation methods, technological advances, and improved 
cultural practices have resulted in the Texas citrus industry growing 
larger, good quality fruit. Current pack regulations preclude this 
fruit from being marketed in fresh channels (with the exception of 
small amounts allowed to exceed the maximum specified diameters), and 
it is generally diverted to the processing market. The processing 
market is currently in an oversupply situation and yields low returns 
to growers. Providing for additional supplies (an estimated 5 to 10 
percent) to be marketed fresh should, therefore, enhance grower 
returns.
    Additionally, the TVCC indicates that there has been increased 
demand from consumers in recent years for a broader range of sizes of 
oranges and grapefruit. Providing that these larger sizes may be 
shipped will provide greater supplies and more choices to consumers. It 
should also make the Texas citrus industry more competitive with other 
citrus-growing areas, which have adapted their marketing efforts to 
meet consumer demands.
    Finally, varying growing conditions in Texas result in diverse size 
distributions of oranges and grapefruit from season to season. Severe 
drought conditions may cause a season's crop to be 5 to 10 percent 
small sizes. Conversely, a rainy season may result in 5 to 10 percent 
large sizes. These changes in pack requirements, to approve the 
shipment of all commercial sizes of oranges and grapefruit, will 
provide handlers with the flexibility to market available supplies in 
light of existing market conditions.

Revision of Minimum Size Requirements for Grapefruit

    Minimum size requirements for grapefruit are in effect under 
Sec. 906.365 of the order's rules and regulations. Currently, during 
the period November 16 through January 31 each season, grapefruit must 
be at least pack size 96, with a minimum diameter of 3\9/16\ inches. At 
other times, grapefruit that is pack size 112 (with a minimum diameter 
of 3\5/16\ inches), may be shipped if it grades at least U.S. No. 1. 
Otherwise, the minimum grade requirement for grapefruit is Texas 
Choice. The smaller fruit is subject to a higher grade requirement 
because experience indicates that a market exists for this smaller 
fruit only if it meets a higher quality standard.
    This interim final rule provides that pack size 112 grapefruit (if 
it grades at least U.S. No. 1) may be shipped throughout the entire 
season. This has been done in recent seasons. The Texas citrus industry 
has found that there is a market for this smaller grapefruit, 
particularly in juice bars, health food stores, and other types of 
retail outlets that use smaller fruit for juicing. In addition, some 
markets, such as Canada, prefer smaller fruit.
    Also, as previously indicated, drought conditions can lead to an 
abundance of smaller sizes. Such conditions currently exist in the 
Lower Rio Grande Valley in Texas. The expected small sized grapefruit, 
which cannot be marketed profitably in processing outlets, will be made 
available to meet fresh market needs through this rule. This action is

[[Page 43141]]

expected to result in improved grower returns.
    Permitting shipments of pack size 112 grapefruit grading at least 
U.S. No. 1 will enable Texas grapefruit handlers to meet market needs 
and compete with similar size grapefruit expected to be shipped from 
Florida.
    These changes in pack and size requirements for Texas oranges and 
grapefruit are intended to broaden the range of sizes and increase the 
amount of fruit available to consumers and increase grower returns. An 
alternative to this rule is to leave the current regulations in place. 
However, that would result in more of the larger oranges and grapefruit 
and the smaller grapefruit going to processors, and less fruit going to 
the more lucrative fresh market, which yields higher returns to 
growers.
    After consideration of all relevant material presented, including 
the TVCC's recommendation, and other available information, it is found 
that this interim final rule, as hereinafter set forth, will tend to 
effectuate the declared policy of the Act.
    Pursuant to 5 U.S.C. 553, it is also found and determined, upon 
good cause, that it is impracticable, unnecessary and contrary to the 
public interest to give preliminary notice prior to putting this rule 
into effect, and that good cause exists for not postponing the 
effective date of this rule until 30 days after publication in the 
Federal Register because: (1) To be of maximum benefit, this action 
should be effective by September 1, the beginning of the 1996-97 
season; (2) Texas citrus handlers are aware of this relaxation which 
was recommended by the TVCC at a public meeting, and they will need no 
additional time to comply with its requirements; and (3) this rule 
provides a 30-day comment period and any comments received will be 
considered prior to finalization of this rule.

List of Subjects in 7 CFR Part 906

    Oranges, Marketing agreements, Grapefruit, Reporting and 
recordkeeping requirements.

    For the reasons set forth in the preamble, 7 CFR part 906 is 
amended as follows:

PART 906--ORANGES AND GRAPEFRUIT GROWN IN THE LOWER RIO GRANDE 
VALLEY IN TEXAS

    1. The authority citation for 7 CFR part 906 continues to read as 
follows:

    Authority: 7 U.S.C. 601-674.

    2. Paragraph (a)(2)(i)(a) of Sec. 906.340 is revised to read as 
follows:


Sec. 906.340  Container, pack, and container marking regulations.

    (a) * * *
    (2) * * *
    (i) * * *
    (a) Oranges, except Navel oranges and Valencia and similar late-
type oranges, when packed in any box, bag, or carton shall be sized in 
accordance with the sizes set forth in the following Table I, except as 
otherwise provided by regulations issued pursuant to this part, and 
otherwise meet the requirements of standard pack; and when in 
containers not packed according to a definite pattern shall be sized in 
accordance with the sizes set forth in the following Table I and 
otherwise meet the requirements of standard sizing: Provided, That the 
packing tolerances, which are set forth in the U.S. Standards for 
Oranges (Texas and States other than Florida, California, and Arizona), 
shall be applicable to fruit so packed.

                       Table I.--1\2/5\ Bushel Box                      
                          [Diameter in inches]                          
------------------------------------------------------------------------
            Pack size                    Minimum            Maximum     
------------------------------------------------------------------------
46's.............................  4\5/16\             5                
54's or 56's.....................  4\2/16\             4\12/16\         
64's.............................  3\15/16\            4\8/16\          
70's or 72's.....................  3\13/16\            4\5/16\          
80's.............................  3\10/16\            4\2/16\          
100's............................  3\7/16\             3\13/16\         
112's............................  3\5/16\             3\11/16\         
125's............................  3\3/16\             3\9/16\          
163's............................  2\15/16\            3\5/16\          
200's............................  2\11/16\            3\1/16\          
252's............................  2\7/16\             2\12/16\         
288's............................  2\4/16\             2\9/16\          
324's............................  2\3/16\             2\8/16\          
------------------------------------------------------------------------

    3. Paragraph (a)(2)(i)(c) of Sec. 906.340 is amended by 
redesignating ``Table I'' as ``Table II''.
    4. Paragraph (a)(2)(ii) of Sec. 906.340 is revised to read as 
follows:


Sec. 906.340  Container, pack, and container marking regulations.

    (a) * * *
    (2) * * *
    (ii) Grapefruit. Grapefruit, when packed in any box, bag or carton, 
shall be within the diameter limits specified for the various pack 
sizes in 7 CFR 51.630(c) of the United States Standards for Grades of 
Grapefruit (Texas and States other than Florida, California, and 
Arizona): Provided, That the minimum diameter limit for pack size 36 
grapefruit shall be 4\15/16\ inches and the maximum diameter limit 
shall be 5\9/16\ inches; Provided, That the minimum diameter limit for 
pack size 96 grapefruit shall be 3\9/16\ inches and for pack size 112 
grapefruit shall be 3\5/16\ inches; and Provided further, That any 
grapefruit in boxes or cartons shall be packed in accordance with the 
requirements of standard pack.
* * * * *
    5. Section 906.365 is amended by revising paragraph (a)(4) to read 
as follows:


Sec. 906.365  Texas Orange and Grapefruit Regulation 34.

    (a) * * *
    (4) Such grapefruit are at least pack size 96, except that the 
minimum diameter limit for pack size 96 grapefruit in any lot shall be 
3\9/16\ inches: Provided, that any handler may handle grapefruit, which 
are smaller than pack size 96, if such grapefruit grade at least U.S. 
No. 1 and they are at least pack size 112, except that the minimum 
diameter limit for pack size 112 grapefruit in any lot shall be 3\5/16\ 
inches.
* * * * *
    Dated: August 16, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-21331 Filed 8-20-96; 8:45 am]
BILLING CODE 3410-02-P