[Federal Register Volume 64, Number 238 (Monday, December 13, 1999)]
[Rules and Regulations]
[Pages 69375-69380]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-32229]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 906

[Docket No. FV99-906-3 FIR]


Oranges and Grapefruit Grown in Lower Rio Grande Valley in Texas; 
Changes to Pack Requirements

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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

SUMMARY: The Department of Agriculture (Department) is adopting, as a 
final rule, without change, the provisions of an interim final rule 
which changed the pack requirements 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 continues in effect the changes to the orange 
and grapefruit pack sizes so that each pack size reflects 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. The rule also continues in effect conforming 
changes to the pack size references in the minimum size regulations. 
Continuation of these changes will enable Texas handlers to compete 
more effectively in the marketplace.

EFFECTIVE DATE: January 12, 2000.

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 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].

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 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 continues in effect the changes to the previous 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 sizes will also be more closely aligned to the pack 
sizes and size tolerances used by California orange shippers. The rule 
also continues in effect the conforming changes to the pack size 
references in the minimum size regulations for oranges and grapefruit 
so the minimum size requirements remain the same as previously 
specified. Continuation of these changes 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, and discussed 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 resulted 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 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 the 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 previously 
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.

[[Page 69376]]

Changes to the Pack Requirements for Oranges

    Section 906.340(a)(2)(i) specifies pack requirements for oranges. 
It previously included 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 
continue to be specified, together with standard pack requirements.
    Previously, oranges were 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) were specified. The minimum 
diameters for Navel, Valencia, and similar late-type oranges for each 
of the pack sizes were \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 were the same.
    All oranges, however, must have been at least pack size 288, except 
that the minimum diameter limit was 2\6/16\ inches.
    The previous orange pack sizes and minimum and maximum diameters 
are shown in the following tables:

Table I (Section 906.304(a)(2)(i)(a))

    Table I--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\
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 and 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\
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 have been at least Pack Size 288, except that the 
minimum diameter limit for Pack Size 288 oranges in any lot was 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 indicated 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. Previously, the pack sizes for California oranges were different 
from those for Texas oranges. Furthermore, as mentioned before, Texas 
previously had two orange size tables--one for Navels, Valencia, 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 
previously used by the Texas citrus industry. Buyers' computers tended 
to have California pack sizes listed, but not Texas'. This put handlers 
of Texas oranges at a competitive disadvantage. Further, Texas did not 
previously pack a size 138 orange because this size was not a specified 
pack size. The closest Texas sizes were 126 and 144. As a result, the 
Texas orange industry could not take advantage of size 138 business.
    Moreover, retailers, wholesalers, food service distributors, and 
brokers were 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 was a marketing problem that affected all 
producers and handlers and caused the Texas industry to lose fresh 
orange sales. The Committee believed that the Texas pack sizes needed 
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\
------------------------------------------------------------------------

    Previously, Texas had 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 changes to 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 were no longer used by the industry.
    Adopting the California orange pack sizes for all varieties of 
oranges eliminated the two separate pack size tables previously in the 
orange pack regulations. Separate tables for different varieties of 
oranges had been 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 were no longer 
necessary.
    Language was added to clarify that if \7/10\ bushel containers of 
oranges are marked, the count of fruit in each

[[Page 69377]]

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 the \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 Texas orange and grapefruit regulations 
previously referred to a 1\2/5\ bushel box. The 1\2/5\ bushel box was 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 were confusing to the industry. All 
weekly Committee utilization reports, annual reports, and other 
documents reference the \7/10\ bushel carton equivalent. With the 
elimination of the 1\2/5\ bushel box, the orange pack sizes are 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 pack as to count of fruit in the box. 
Eliminating all references to the 1\2/5\ bushel box and related pack 
sizes minimizes 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 was previously 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 were that the minimum diameter limit for pack size 96 
grapefruit was 3\9/16\ inches, and for pack size 112 grapefruit, the 
minimum diameter was 3\5/16\ inches. The standard pack and standard 
sizing requirements, and packing tolerances 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 
included a size 36 grapefruit, which ranged from 4\15/16\ to 5\9/16\ 
inches in diameter. This pack size was not in the grapefruit standards. 
The minimum diameters for pack sizes 96 and 112 were 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 was obsolete and confusing. As mentioned 
earlier, the Texas citrus industry for many years had used the \7/10\ 
bushel carton as its standard shipping container. Previously, any 
reference to a 1\2/5\ bushel of fruit had to be converted to \7/10\ 
bushel equivalents. With the elimination of the 1\2/5\ bushel box, 
grapefruit pack sizes 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 previous pack sizes.) Minimum and
  maximum diameter ranges for the new pack sizes (not in parentheses)
  are the same as currently specified.

    Language was also added by the interim final rule 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 required conforming changes to the size regulations for 
oranges in Sec. 906.365(a)(2). The minimum size which may be packed 
changed from pack size 288 to the new pack size 138, but the minimum 
size permitted remained 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 required 
conforming changes to the grapefruit size regulations in 
Sec. 906.365(a)(4). The minimum pack size changed from pack size 96 to 
pack size 48, but the minimum diameter permitted to be shipped remained 
3\9/16\ inches. A reference to the previous pack size 112 in 
Sec. 906.365(a)(4) was changed 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.

Final 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, the AMS 
has prepared this final 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

[[Page 69378]]

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 continues in effect the changes to 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 were also made to the pack size references in the size 
regulations for oranges and grapefruit so the minimum sizes permitted 
to be shipped remain the same as previously specified.
    The Grade and Size Subcommittee met on April 20 and 29, and May 4, 
1999, and discussed 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 previously 
were 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 the 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)(i) specifies pack requirements for oranges 
and previously included two tables with pack sizes and minimum and 
maximum diameter size ranges for different varieties of oranges. These 
requirements provided, among other things, that oranges be packed in 
accordance with certain minimum and maximum diameters.
    Previously, oranges were 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 
were to 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 were \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 were the same. The minimum diameter, however, for 
all oranges was pack size 288 with a minimum diameter limit of 2\6/16\ 
inches.
    The previous orange pack sizes and minimum and maximum diameters 
are shown in the following tables:

Table I (Section 906.304 (a)(2)(i)(a))

 Table I.--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\
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, and 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\
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 had to be at least Pack Size 288, except that the minimum 
diameter limit for Pack Size 288 oranges in any lot was 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 indicated 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. 
Previously, oranges from California were sized differently from oranges 
available from Texas. Furthermore, as mentioned before, Texas had two 
orange size tables--one for Navels, Valencia, 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 
previously used by the Texas citrus industry. Buyers' computers tended 
to have California pack sizes listed, but not Texas'. This put handlers 
of Texas oranges at a competitive disadvantage. Further, Texas did not 
previously pack a size 138 orange. The closest Texas sizes were 126 and 
144. As a result, the Texas orange industry could not supply buyers 
interested in purchasing size 138.
    Retailers, wholesalers, food service distributors, and brokers were 
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

[[Page 69379]]

sizes different from California's was a marketing problem that affected 
all producers and handlers and caused the Texas industry to lose fresh 
orange sales. The Committee believed 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 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\
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\
------------------------------------------------------------------------

    Previously, Texas had minimum and maximum orange diameters size 
ranges in inches and fractions of an inch for each pack size. The 
Committee recommended changes to 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 eliminated the two separate pack size tables previously in the 
orange pack regulations. The separate tables for different varieties of 
oranges had been 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 were no longer necessary.
    For purposes of clarity, language was 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 previous Texas orange and grapefruit pack size regulations 
referred to a 1\2/5\ bushel box. The 1\2/5\ bushel box was 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 were confusing to the industry. All weekly Committee 
utilization reports, annual reports, and other documents reference the 
\7/10\ bushel carton or equivalent. With the elimination of the 1\2/5\ 
bushel box, the orange pack sizes are 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 minimizes 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 was previously 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. The standard pack and standard sizing 
requirements, and packing tolerances 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 included a size 36 grapefruit, which ranged from 4\5/16\ to 5\9/
16\ inches in diameter. The minimum diameters for pack sizes 96 and 112 
were 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, 
and these exceptions continue in effect.
    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 was obsolete and 
confusing. The Texas citrus industry for many years used the \7/10\ 
bushel carton as the standard. Previously, any reference to a 1\2/5\ 
bushel of fruit had to be converted to \7/10\ bushel equivalents. With 
the elimination of the 1\2/5\ bushel box, grapefruit pack sizes 
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 previous pack sizes.) Minimum and
  maximum diameter size ranges for the new pack sizes remain the same as
  previously specified.

    For purposes of clarity, language was 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 required conforming changes to the size regulations for 
oranges in Sec. 906.365(a)(2). The minimum size which may be packed 
changed from pack size 288 to the new pack size 138,

[[Page 69380]]

but the minimum diameter permitted to be shipped remained 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 required 
conforming changes to the grapefruit size regulations in 
Sec. 906.365(a)(4). The minimum pack size changed from pack size 96 to 
pack size 48, but the minimum diameter permitted to be shipped remained 
3\9/16\ inches. A reference to the previous pack size 112 in 
Sec. 906.365(a)(4) was changed 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 
previously were 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 does not have any effect upon producer returns or sales. It 
simply eliminated an antiquated unit of measure from the regulations, 
prevents confusion, and eliminates 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 prevents 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 changes offer benefits to the entire 
Texas citrus industry. The changes enable handlers to compete more 
effectively in the marketplace. They 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 
benefits producers, handlers, buyers, and consumers of Texas citrus. 
Accordingly, in assessing alternatives to the changes provided in the 
interim final rule, this final action continues to provide the most 
beneficial results.
    This rule will not impose any additional reporting or recordkeeping 
requirements on either small or large 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. 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.
    An interim final rule concerning this action was published in the 
Federal Register on August 31, 1999. The Committee's staff mailed 
copies of the rule to all Committee members and orange and grapefruit 
handlers and producers. In addition, the Office of the Federal Register 
made the rule available through the Internet. That rule provided for a 
60-day comment period which ended November 1, 1999. No comments were 
received.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at the 
following web site: http://www.ams.usda.gov/fv/moab.html. Any questions 
about the compliance guide should be sent to Jay Guerber at the 
previously mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.
    After consideration of all relevant material presented, including 
the Committee's recommendation, and other information, it is found that 
finalizing the interim final rule, without change, as published in the 
Federal Register (64 FR 47349, August 31, 1999) will tend to effectuate 
the declared policy of the Act.

List of Subjects in 7 CFR Part 906

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

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

    Accordingly, the interim final rule amending 7 CFR part 906 which 
was published at 64 FR 47349 on August 31, 1999, is adopted as a final 
rule without change.

    Dated: December 8, 1999.
James R. Frazier,
Acting Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 99-32229 Filed 12-10-99; 8:45 am]
BILLING CODE 3410-02-P