[Federal Register Volume 65, Number 186 (Monday, September 25, 2000)]
[Rules and Regulations]
[Pages 57538-57541]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-24505]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 905

[Docket No. FV00-905-3 FR]


Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida; 
Increase in the Minimum Size Requirements for Dancy, Robinson, and 
Sunburst Tangerines

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This rule increases the minimum size requirements for Dancy, 
Robinson, and Sunburst tangerines grown in Florida. The minimum size 
requirements increase to 2\6/16\ inches diameter for both domestic and 
export shipments. The marketing order regulates the handling of 
oranges, grapefruit, tangerines, and tangelos grown in Florida and is 
administered locally by the Citrus Administrative Committee 
(Committee). This rule will help the Florida tangerine industry meet 
market demands for larger fruit and should help increase returns to 
producers.

EFFECTIVE DATE: This final rule becomes effective September 26, 2000.

FOR FURTHER INFORMATION CONTACT: William G. Pimental, Marketing 
Specialist, Southeast Marketing Field Office, Marketing Order 
Administration Branch, Fruit and Vegetable Programs, AMS, USDA, P.O. 
Box 2276, Winter Haven, Florida 33883-2276; telephone: (863) 299-4770, 
Fax: (863) 299-5169; 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: [email protected].

SUPPLEMENTARY INFORMATION: This final rule is issued under Marketing 
Agreement No. 84 and Marketing Order No. 905, both as amended (7 CFR 
part 905), regulating the handling of oranges, grapefruit, tangerines, 
and tangelos grown in Florida, 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 final 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.
    The order for Florida citrus provides for the establishment of 
minimum grade and size requirements with the concurrence of the 
Secretary. The minimum grade and size requirements are designed to 
provide fresh markets with fruit of acceptable quality and size, 
thereby maintaining consumer confidence for fresh Florida citrus. This 
contributes to stable marketing conditions in the interest of growers, 
handlers, and consumers, and helps increase returns to Florida citrus 
growers. The current minimum grade standard for domestic and export 
shipments of Dancy, Robinson, and Sunburst tangerines is U.S. No. 1. 
The current minimum size requirement for domestic shipments is 2\4/16\ 
inches in diameter (size 210), and the minimum size for export 
shipments is 2\2/16\ inches

[[Page 57539]]

in diameter for Dancy tangerines and 2\4/16\ for Robinson and Sunburst.
    This final rule changes the order's rules and regulations by 
increasing the minimum size requirement for domestic and export 
shipments of Dancy, Robinson, and Sunburst tangerines. This rule 
increases the minimum size to 2\6/16\ inches in diameter for Dancy, 
Robinson, and Sunburst tangerines both for domestic and export 
shipments. This rule will help the Florida tangerine industry meet 
market and industry demand for larger fruit and should help increase 
returns to producers. The Committee met on May 26, 2000, and 
unanimously recommended this action.
    Section 905.52 of the order, in part, authorizes the Committee to 
recommend minimum grade and size regulations to the Secretary. Section 
905.306 (7 CFR part 905.306) specifies minimum grade and size 
requirements for different varieties of fresh Florida tangerines. Such 
requirements for domestic shipments are specified in Sec. 905.306 in 
Table I of paragraph (a), and for export shipments in Table II of 
paragraph (b). This rule adjusts Table I and Table II to establish a 
minimum size of 2\6/16\ inches diameter for Dancy, Robinson, and 
Sunburst tangerines.
    This rule increases the minimum size requirement for domestic and 
export shipments of Dancy, Robinson, and Sunburst tangerines. Based on 
an analysis of markets and demands of buyers, the Committee believes 
that an increase in minimum size will improve the marketing of Florida 
tangerines. This follows an industry movement toward shipping larger 
tangerines. New commercial varieties have resulted in larger-sized 
tangerines being shipped in response to a strong consumer demand. 
Because of this demand, production of larger tangerines has been a 
popular method of improving returns among producers as it also 
increases total yields.
    The shift toward tangerine varieties producing larger fruit has 
been in response to customer needs. Robinson and Dancy tangerines tend 
to be smaller varieties. Overall, production of these two varieties has 
decreased by more than 60 percent from the 1995-96 season to the 1999-
2000 season. Conversely, production of larger-sized varieties such as 
Sunburst and Fallglo has been increasing. In terms of total shipments 
of Dancy, Robinson, and Sunburst tangerines, Sunburst represented 
almost 95 percent of combined shipments for the 1999-2000 season.
    The preference for large sizes is also evident in the volume of 
small sizes shipped. From the 1995-96 season to the 1999-2000 season, 
shipments of size 210 fruit accounted for on average less than 1.3 
percent of total Dancy, Robinson, and Sunburst tangerine shipments. 
Even during the 1998-99 season when sizes for all Florida citrus were 
unusually small, shipments of size 210 tangerines only accounted for 
2.3 percent of total shipments of these three varieties.
    The change in the minimum size was recommended to address this 
movement of customer demand and industry production toward larger 
sizes. Size continues to be a major influence on price. The Committee 
believes that the availability of small size 210 fruit has a negative 
affect on market price. In terms of price, a carton of size 210 (2\4/
16\ inch diameter) tangerines can be as much as $3 less than a carton 
of size 176 (2\6/16\ inch) tangerines. For the 1999-2000 season, the 
average price for a carton of size 210 Dancy, Robinson, or Sunburst 
tangerines was $7.80. This compares to a weighted average price for all 
sizes of $11.26. The Committee believes increasing the minimum size 
better matches supply with demand and will lessen the price depressing 
affect of smaller sizes.
    In addition, the seasons for these three varieties are short. The 
season for the Dancy tends to be three weeks long, five weeks for the 
Robinson, and 12 weeks for the Sunburst. With this short marketing 
window, it is of increased importance that only the best, most 
preferred fruit enters the market. The market has no time to recover 
from shipments of fruit that have a depressing effect on price. Also, 
on average, approximately 65 percent of the crop for these three 
varieties goes to the fresh market. With the on tree price for 
processing averaging less than $1.00, it is imperative that the fresh 
market be maintained.
    The increase in the minimum size to 2\6/16\ inches in diameter is 
not expected to significantly affect the total number of shipments. 
During the 1999-2000 season, of the approximate 3,821,000 \4/5\ bushel 
container shipments of Dancy, Robinson, and Sunburst tangerines from 
Florida, only about 20,670 cartons were size 210. Therefore, the 
increase in the size requirement would only reduce shipments by around 
0.5 percent. This change will also make the minimum size consistent for 
all tangerines, as the minimum size is already 2\6/16\ inches for 
Fallglo and Honey tangerines.
    Experience has shown that providing uniform quality and size 
acceptable to consumers helps stabilize the market, improve grower 
returns, and foster market growth. The increased minimum size matches 
size to market preferences, and is expected to benefit both producers 
and handlers of Florida tangerines. Increasing the minimum size is 
expected to further enhance consumer demand and encourage repeat 
purchases resulting in increased returns to producers. Therefore, based 
on available information, the Committee unanimously recommended that 
the minimum size for shipping Dancy, Robinson, or Sunburst tangerines 
to the domestic and export market be 2\6/16\ inches in diameter.
    Handlers in Florida shipped approximately 3,821,000 \4/5\ bushel 
cartons of Dancy, Robinson, and Sunburst tangerines to the fresh market 
during the 1999-2000 season. Of these cartons, about 150,000 were 
exported. In the past three seasons, domestic shipments of Florida 
Dancy, Robinson, and Sunburst tangerines averaged about 3.5 million 
cartons.
    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 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 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 55 tangerine handlers who are subject to 
regulation under the order, and approximately 11,000 growers of citrus 
in the regulated area. Small agricultural service firms, which include 
tangerine handlers, are defined by the Small Business Administration 
(SBA) as those having annual receipts of less than $5,000,000, and 
small agricultural producers are defined as those having annual 
receipts of less than $500,000 (13 CFR 121.201).
    Based on industry and Committee data for the 1999-2000 season, the 
average annual f.o.b. price for fresh tangerines was around $12.00 per 
\4/5\ bushel carton, and total fresh shipments of Dancy, Robinson, and 
Sunburst tangerines for the 1999-2000 season were 3,821,000 cartons. 
Approximately 25 percent of all handlers handled 70 percent of Florida 
tangerine shipments. In addition, many of these handlers ship other 
citrus fruit and products which are not included in Committee data but 
would contribute further to handler receipts. Using the average f.o.b. 
price,

[[Page 57540]]

about 55 percent of tangerine handlers could be considered small 
businesses under SBA's definition. The majority of these handlers, and 
growers may be classified as small entities.
    This rule increases the minimum size requirement for domestic and 
export shipments of tangerines to 2\6/16\ inches in diameter for the 
Dancy, Robinson, and Sunburst varieties. The current minimum size 
requirement for domestic shipments is 2\4/16\ inches in diameter, and 
the minimum size for export shipments is 2\2/16\ inches in diameter for 
Dancy tangerines and 2\4/16\ for Robinson and Sunburst. Section 905.52 
of the order, in part, authorizes the Committee to recommend minimum 
grade and size regulations to the Secretary. Section 905.306 (7 CFR 
part 905.306) specifies minimum grade and size requirements for 
different varieties of fresh Florida tangerines. Such requirements for 
domestic shipments are specified in Sec. 905.306 in Table I of 
paragraph (a), and for export shipments in Table II of paragraph (b). 
This rule adjusts Table I and Table II to establish a minimum size of 
2\6/16\ inches in diameter for Dancy, Robinson, and Sunburst 
tangerines. This rule will help the Florida tangerine industry meet 
market and industry demands and should help increase returns to 
producers.
    The costs associated with this rule are expected to be minimal. The 
increase in the minimum size is not expected to significantly affect 
the total number of tangerine shipments. Rather, the Committee believes 
this size increase will help improve the marketing of Florida 
tangerines. The direct cost related to this change would stem from the 
shipment volume of size 210 tangerines times price. In terms of last 
season, that would be approximately 20,670 cartons times the average 
price for size 210 tangerines, $7.80, for a possible cost of about 
$161,226.
    However, the Committee believes that this action will help 
stabilize prices and increase shipments. This change was made to 
address the increasing demand for larger sizes. While there are some 
short-term costs associated with increasing the minimum size, the 
benefits are expected to outweigh the costs. If this regulation just 
succeeds in raising returns five cents a carton, it would more than 
cover its costs. In addition, this change should not require the 
purchase of any additional equipment. This action is consistent with 
current and anticipated demand. The opportunities and benefits of this 
rule are expected to be equally available to tangerine handlers and 
growers regardless of their size of operation.
    The Committee considered one alternative to this action. The 
Committee discussed leaving the regulations as they were. However, this 
alternative was rejected based on the consideration of current demand 
for larger sizes and the possible negative impact on price resulting 
from maintaining the current minimum size.
    This rule increases size requirements under the marketing order for 
Florida citrus. Accordingly, this action will not impose any additional 
reporting or recordkeeping requirements on either small or large 
tangerine handlers. As with all Federal marketing order programs, 
reports and forms are periodically reviewed to reduce information 
requirements and duplication by industry and public sector agencies.
    As noted in the initial regulatory flexibility analysis, the 
Department has not identified any relevant Federal rules that 
duplicate, overlap or conflict with this rule. However, tangerines must 
meet the requirements as specified in the U.S. Standards for Grades of 
Florida Tangerines (7 CFR 51.1810 through 51.1837) issued under the 
Agricultural Marketing Act of 1946 (7 U.S.C. 1621 through 1627).
    In addition, the Committee's meeting was widely publicized 
throughout the Florida citrus industry and all interested persons were 
invited to attend the meeting and participate in Committee 
deliberations on all issues. Like all Committee meetings, the May 26, 
2000, meeting was a public meeting and all entities, both large and 
small, were able to express their views on this issue.
    A proposed rule concerning this action was published in the Federal 
Register on August 1, 2000 (65 FR 46879). Copies of the rule were 
mailed or sent via facsimile to all Committee members and Florida 
citrus handlers. Finally, the rule was made available through the 
Internet by the Office of the Federal Register. A 30-day comment period 
ending August 31, 2000, was provided to allow interested persons to 
respond to the proposal. No comments were received.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: 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 matter presented, including the 
information and recommendation submitted by the Committee and other 
available information, it is hereby found that this rule, as 
hereinafter set forth, will tend to effectuate the declared policy of 
the Act.
    It is further found that good cause exists for not postponing the 
effective date of this rule until 30 days after publication in the 
Federal Register (5 U.S.C. 553). Tangerine shipments are expected to 
begin in September, and handlers are ready to comply with the increased 
size requirements of this rule, which were recommended at a public 
meeting of the Committee. Also, a 30-day comment period was provided 
for in the proposed rule, and no comments were received.

List of Subjects in 7 CFR Part 905

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

    For the reasons set forth in the preamble, 7 CFR part 905 is 
amended as follows:

PART 905--ORANGES, GRAPEFRUIT, TANGERINES, AND TANGELOS GROWN IN 
FLORIDA

    1. The authority citation for 7 CFR part 905 continues to read as 
follows:

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


    2. In Sec. 905.306, Table I in paragraph (a) and Table II in 
paragraph (b) are amended by revising the entries for Dancy, Robinson, 
and Sunburst under ``Tangerines,'' to read as follows:


Sec.  905.306  Orange, Grapefruit, Tangerine, and Tangelo Regulation.

    (a) * * *

[[Page 57541]]



                                                    Table II
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                                                                                                      Minimum
                 Variety                       Regulation period             Minimum grade           diameter
                                                                                                     (inches)
(1)                                       (2).......................  (3).......................             (4)
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               Tangerines
Dancy,..................................  On and after September 26,  U.S. No. 1................          2-6/16
                                           2000.
 
*                  *                  *                  *                  *                  *
                                                        *
Robinson,...............................  On and after September 26,  U.S. No. 1................          2-6/16
                                           2000.
Sunburst,...............................  On and after September 26,  U.S. No. 1................          2-6/16
                                           2000.
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* * * * *
    (b) * * *

                                                    Table II
----------------------------------------------------------------------------------------------------------------
                                                                                                      Minimum
                 Variety                       Regulation period             Minimum grade           diameter
                                                                                                     (inches)
(1)                                       (2).......................  (3).......................             (4)
----------------------------------------------------------------------------------------------------------------
               Tangerines
Dancy,..................................  On and after September 26,  U.S. No. 1................          2-6/16
                                           2000.
 
*                  *                  *                  *                  *                  *
                                                        *
Robinson,...............................  On and after September 26,  U.S. No. 1................          2-6/16
                                           2000.
Sunburst,...............................  On and after September 26,  U.S. No. 1................          2-6/16
                                           2000.
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* * * * *

    Dated: September 18, 2000.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 00-24505 Filed 9-22-00; 8:45 am]
BILLING CODE 3410-02-U