[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]


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

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: 
[email protected]. 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.G[email protected]. 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