Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida; Limiting the Volume of Small Florida Red Seedless Grapefruit

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 905

[Docket No. FV97-905-1 IFR]

Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida;

Limiting the Volume of Small Florida Red Seedless Grapefruit

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Amended interim final rule with request for comments.

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SUMMARY: This interim final rule amends a prior interim final rule that

limited the volume of small red seedless grapefruit entering the fresh

market under the Florida citrus marketing order. 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). The prior interim final rule

limited the volume of size 48 and/or size 56 red seedless grapefruit

handlers could ship during the first 11 weeks of the 1997-1998 season

that began in September. This rule changes the weekly percentages for

the last five weeks of the regulatory period from 30 percent to 35

percent. These revisions will provide a sufficient supply of small

sized red seedless grapefruit to meet market demand, without saturating

all markets with these small sizes. This rule is necessary to help

stabilize the market and improve grower returns.

DATES: Effective October 31, 1997 through November 30, 1997. Comments

received by November 10, 1997 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 in triplicate to the Docket

Clerk, Fruit and Vegetable Division, AMS, USDA, room 2525-S, P.O. Box

96456, Washington, DC 20090-6456; Fax: (202) 720-5698. 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: Christian D. Nissen, Southeast

Marketing Field Office, Marketing Order Administration Branch, F&V,

AMS, USDA, P.O. Box 2276, Winter Haven, Florida 33883; telephone: (941)

299-4770, Fax: (941) 299-5169; or Anne Dec, Marketing Order

Administration Branch, F&V, AMS, USDA, room 2522-S, P.O. Box 96456,

Washington, DC 20090-6456; telephone: (202) 720-5053, Fax: (202) 720-

5698. Small businesses may request information on compliance with this

regulation by contacting Jay Guerber, Marketing Order Administration

Branch, F&V, AMS, USDA, room 2525-S, P.O. Box 96456, Washington, DC

20090-6456; telephone (202) 720-2491, Fax: (202) 720-5698.

SUPPLEMENTARY INFORMATION: This amended interim 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 interim final rule has been reviewed under Executive Order

12988, Civil Justice Reform. This rule is intended to apply to weekly

shipments of red seedless grapefruit beginning October 27 through

November 30, 1997. 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 date of the entry of the ruling.

The order provides for the establishment of grade and size

requirements for Florida citrus, with the concurrence of the Secretary.

These grade and size requirements are designed to provide fresh markets

with citrus fruit of acceptable quality and size. This helps create

buyer confidence and contributes to stable marketing conditions. This

is in the interest of growers, handlers, and consumers, and is designed

to increase returns to Florida citrus growers. The current minimum

grade standard for red seedless grapefruit is U.S. No. 1, and the

minimum size requirement is size 56 (at least 3\5/16\ inches in

diameter).

Section 905.52 of the citrus marketing order provides authority to

limit shipments of any grade or size, or both, of any variety of

Florida citrus. Such limitations may restrict the shipment of a portion

of a specified grade or size of a variety. Under such a limitation, the

quantity of such grade or size that may be shipped by a handler during

a particular week is established as a percentage of the total shipments

of such variety by such handler in a prior period, established by the

committee and approved by the Secretary, in which the handler shipped

such variety.

Section 905.153 of the order provides procedures for limiting the

volume of small red seedless grapefruit entering the fresh market. The

procedures specify that the committee may recommend that only a certain

percentage of sizes 48 and/or 56 red seedless grapefruit be made

available for shipment into fresh market channels for any week or weeks

during the regulatory period. The 11 week period begins the third

Monday in September. Under such a limitation, the quantity of sizes 48

and/or 56 red seedless grapefruit that may be shipped by a handler

during a regulated week is calculated using the recommended percentage.

By taking the recommended weekly percentage times the average weekly

volume of red grapefruit handled by such handler in the previous five

seasons, handlers can calculate the volume of sizes 48 and/or 56 they

may ship in a regulated week.

This rule amends an interim final rule published September 12,

1997, in the Federal Register (62 FR 47913). That rule limited the

volume of small red seedless grapefruit entering the fresh market for

each week of an 11 week period beginning the week of September 15. That

rule limited the volume of sizes 48 and/or 56 red seedless grapefruit

by establishing a weekly percentage for each of the 11 weeks. This

amended interim final rule changes the weekly percentage for the last

five weeks of the regulatory period from 30 percent to 35 percent.

This is a change in the percentages originally recommended by the

committee. The committee had voted at its May 28, 1997, meeting to

establish a weekly percentage of 25 percent for

[[Page 58634]]

each of the 11 weeks in a vote of 10 in favor to 7 opposed at its

meeting on May 28, 1997. The committee recommended adjusting the

percentages at its meeting August 26, 1997, in a vote of 14 in favor to

3 opposed, recommending weekly percentages of 50 percent for the first

three weeks (September 15 through October 5), 35 percent for the next

three weeks (October 6 through October 26), and at 30 percent for the

remainder of the 11 weeks. The committee met again, October 14, 1997,

and in a unanimous vote recommended changing the weekly percentage for

the last five weeks from 30 percent to 35 percent.

For the past few seasons, returns on red seedless grapefruit have

been at all time lows, often not returning the cost of production. On

tree prices for red seedless grapefruit have declined steadily from

$9.60 per box (1\3/5\ bushel) during the 1989-90 season, to $3.11 per

box during the 1992-93 season, to $1.82 per box during the 1994-95

season, to $1.55 per box during the 1996-97 season. The committee

believes that to stabilize the market and improve returns to growers,

demand for fresh red seedless grapefruit must be stabilized and

increased.

One problem contributing to the current state of the market is the

excessive number of small sized grapefruit shipped early in the

marketing season. During the past three seasons, sizes 48 and 56

accounted for 34 percent of total shipments during the 11 week

regulatory period, with the average weekly percentage exceeding 40

percent of shipments. This contrasts with sizes 48 and 56 representing

only 26 percent of total shipments for the remainder of the season.

While there is a market for early grapefruit, the shipment of large

quantities of small red seedless grapefruit in a short period

oversupplies the fresh market for these sizes and negatively impacts

the market for all sizes.

For the majority of the season, larger sizes return better prices

than smaller sizes. However, there is a push early in the season to get

fruit into the market to take advantage of the higher prices available

at the beginning of the season. The early season crop tends to have a

greater percentage of small sizes. This creates a glut of smaller,

lower priced fruit on the market that drives down the price for all

sizes. Early in the season, larger sized fruit commands a premium

price. In some cases, the f.o.b. is $4 to $6 a carton (\4/5\ bushel)

more than for the smaller sizes. In early October, the f.o.b. for a

size 27 averages around $10.00 per carton. This compares to an average

f.o.b. of $5.50 per carton for size 56. By the end of the 11 week

period outlined in this rule, the f.o.b. for large sizes has dropped to

within two dollars of the f.o.b. for small sizes.

In the past three seasons, during the period covered by this rule,

prices of red seedless grapefruit have fallen from a weighted average

f.o.b. of $7.80 per carton to an average f.o.b. of $5.50 per carton.

Even though later in the season the crop has sized to naturally limit

the amount of smaller sizes available for shipment, the price structure

in the market has already been negatively affected. In the past three

years, the market has not recovered, and the f.o.b. for all sizes fell

to around $5.00 to $6.00 per carton for most of the rest of the season.

The committee discussed this issue at length at several meetings.

The committee believes that the over shipment of smaller sized red

seedless grapefruit early in the season has contributed to below

production cost returns for growers and lower on tree values. An

economic study done by the University of Florida--Institute of Food and

Agricultural Sciences (UF-IFAS) in May 1997, found that on tree prices

have fallen from a high near $7.00 in 1991-92 to around $1.50 for this

past season. The study projects that if the industry elects to make no

changes, the on tree price will remain around $1.50. The study also

indicates that increasing minimum size restrictions could help to raise

returns.

The committee examined shipment data covering the 11 week

regulatory period for the last four seasons. The information contained

the amounts and percentages of sizes 48 and 56 shipped during each

week. They compared this information with tables outlining weekly

f.o.b. figures for each size. Based on this statistical information

from past seasons, the committee members believe there is an indication

that once shipments of sizes 48 and 56 reach levels above 250,000

cartons a week, prices decline on those and most other sizes of red

seedless grapefruit. Without volume regulation, the industry has been

unable to limit the shipments of small sizes. The committee believes

that if shipments of small sizes can be maintained at around 250,000

cartons a week, prices should stabilize and demand for larger, more

profitable sizes should increase.

The committee has had considerable discussion regarding at what

level to establish the weekly percentages. They wanted to recommend

weekly percentages that would provide a sufficient volume of small

sizes without adversely impacting the markets for larger sizes. At its

May 28, 1997, meeting, the committee recommended that the percentage

for each of the 11 weeks be established at the 25 percent level. Their

reasoning was that this percentage, when combined with the average

weekly shipments for the total industry, provided a total industry

allotment of 244,195 cartons of sizes 48 and/or 56 red seedless

grapefruit per regulated week. This percentage would have allowed total

shipments of small red seedless grapefruit to approach the 250,000

carton mark during regulated weeks without exceeding it.

During committee deliberations at the May 28, 1997, meeting,

several concerns were raised regarding the regulation. One area of

concern was the possible impact the regulation may have on exports.

Several members stated that there was a strong demand in some export

markets for small sizes. Other members responded that the percentages

set allow handlers enough volume of small sizes to meet the demand in

these markets. It was also stated that any shortfall an individual

handler might have can be filled by loan or transfer. There was also

some discussion that markets that normally demand small sizes have

shown a willingness to purchase larger sizes. In addition, committee

data indicate that the majority of export shipments occur after the 11

week period when there are no restrictions on small sizes.

Another concern raised was the effect the action would have on

packouts. It was stated that the rule could reduce the volume packed,

resulting in higher packinghouse costs. The purpose of the recommended

rule was to limit the volume of small sizes marketed early in the

season. Larger sizes can be substituted for smaller sizes with a

minimum effect on overall shipments. The rule might require more

selective picking of only the sizes desired, something that many

growers are doing already. The UF-IFAS study presented indicated that

it would increase returns if growers would harvest selectively and

return to repick groves as the grapefruit sized. This also would allow

growers to maximize returns on fresh grapefruit by not picking

unprofitable grades and sizes of red grapefruit that will be sent to

the less profitable processing market. The study also indicated that

selective harvesting can reduce the f.o.b. cost per carton, and

therefore, have a positive impact on grower returns.

Several members were concerned about what would happen if market

conditions were to change. Other committee members responded that if

industry conditions were to change (for example, if there was a freeze,

or if the grapefruit was not sizing), the committee could meet and

recommend

[[Page 58635]]

that the percentage be raised to allow for more small sizes, or that

the limits be removed all together.

Another concern raised at the May 28, 1997, meeting was that market

share could be lost to Texas. According to the Economic Analysis Branch

(EAB), of the Fruit and Vegetable Division, of the Agricultural

Marketing Service (AMS), limiting shipments of small Florida grapefruit

will probably not result in a major shift to Texas grapefruit because

the Texas industry is much smaller and has higher freight costs to some

markets supplied by Florida. The UF-IFAS study made similar findings.

Texas production is much smaller and has been susceptible to freezes

that take it out of the market.

This has lessened its impact on the overall grapefruit market.

At the May 28, 1997, meeting, one handler expressed that they ship

early in the season and this action could be very restrictive. Members

responded that the availability of loans and transfers address these

concerns. There was also discussion of how restrictive this rule

actually is. Based on shipments from the past four seasons, available

allotment would have exceeded actual shipments for each of the first

three weeks that are regulated under this rule even if the weekly

percentage was set at 25 percent. In the three seasons prior to last

season, if a 25 percent restriction on small sizes had been applied

during the 11 week period, only an average of 4.2 percent of overall

shipments during that period would have been affected. The rule

published on September 12, 1997, affected even fewer shipments by

establishing less restrictive weekly percentages. In addition, a large

percentage of this volume most likely could have been replaced by

larger sizes. A sufficient volume of small sized red grapefruit was

still allowed into all channels of trade, and allowances were in place

to help handlers address any market shortfall.

The committee met again August 26, 1997, and revisited the weekly

percentage issue. At the meeting, the committee recommended that the

weekly percentages be changed from 25 percent for each of the 11

regulated weeks to 50 percent for the first three weeks (September 15

through October 5), 35 percent for the next three weeks (October 6

through October 26), and 30 percent for the remainder of the 11 weeks.

In its discussion of this change, the committee reviewed the

initial percentages recommended and the current state of the crop. The

committee also reexamined shipping information from past seasons,

looking particularly at volume across the 11 weeks. Based on shipments

from the past four seasons, available allotment under a 25 percent

restriction would have exceeded actual shipments for each of the first

three weeks that are regulated under this rule.

The committee recognized that in terms of available allotment,

establishing a weekly percentage of 25 percent for the first three

regulated weeks would not be restrictive. However, they said that this

was based on total available allotment, not on data for each individual

handler. The committee determined that if available allotment would

exceed shipments for the first three weeks even when establishing a

percentage of 25 percent, it would give individual handlers greater

flexibility during these three weeks to establish the percentage at 50

percent. They argued that this would provide each handler with

additional allotment during these three weeks, reducing the number of

loans and transfers needed to utilize the available allotment, yet

having little or no affect on the volume of small sizes. The committee

also agreed that setting the percentage at 50 percent rather than 100

percent would still provide some restriction should shipments for

September 15 through October 5 for this season exceed past quantities.

For the remainder of the 11 weeks, the committee believed that the

weekly percentage needed to be less than 50 percent (which would have

resulted in virtually no limitation on shipments of small sizes) but

greater than 25 percent. The committee held that it is important to

control small sizes, but it is also important to be able to service the

markets that demand small sizes. The issue was raised regarding the

possible market impact when small sizes exceed 250,000 cartons in a

week. The committee recognized that ideally, 244,195 cartons of red

seedless grapefruit would be available to the industry for each of the

11 weeks if the percentage was set at 25 percent. However, the

committee was concerned that the true amount available would be lower.

Several members stated that setting a weekly percentage at 25 percent

to approximate the 250,000 cartons was based on total utilization of

allotment, and that assumption was unreasonable. The committee agreed

that loans and transfers are beneficial, but that even with their

availability a percentage of allotment would most likely not be used.

Several other members raised concerns about focusing too much on

total allotment available, rather than on allotment available to

individual handlers. The committee stated that the way a handler's base

is calculated using an average week is probably the most equitable way

to do so. However, they acknowledged that it did present some problems.

Members concurred that the season for red seedless grapefruit is

approximately 33 weeks. However, the members agreed that this did not

mean that every handler was shipping during all 33 weeks. They

discussed how a handler's average weekly shipments are calculated by

averaging their shipments from the past five seasons, and then dividing

this number by the 33 weeks to establish an average week. Members

stated that the calculated average week was often lower than their

actual weekly shipments during the periods they were shipping because

they were not shipping during all 33 weeks. They also stated that

applying a weekly percentage of 25 percent to their average week would

have resulted in limiting their shipments to a level closer to 15

percent of their actual shipments during this period.

Based on this discussion, the committee thought a weekly percentage

of 25 percent would be overly restrictive. The committee believed that

since total available allotment most probably will not be fully

utilized, and how individual handlers are affected, establishing a

weekly percentage of 35 percent for the regulation weeks October 6

through October 26 would be more appropriate. They believed this level

would provide a sufficient supply of small sizes without exceeding

amounts that would negatively affect other markets.

The committee further recommended that the weekly percentage for

the remainder of the 11 weeks be established at 30 percent. The

committee resolved that a lower percentage was desirable moving into

the last five weeks of regulation. The committee believed that as the

industry moves into the season and shipments increase, a weekly

percentage of 30 percent would provide the best balance between supply

and demand for small sized red seedless grapefruit.

At the August 26, 1997, meeting, the concern was raised that the

weekly percentages recommended were not restrictive enough. Committee

members responded that not all available allotment would be utilized,

and that the recommended percentages would still restrict shipments of

small sizes, while providing handlers with flexibility to supply those

markets that demand small sizes.

After considering the concerns expressed, and the available

information, the committee determined that the September 12, 1997,

interim

[[Page 58636]]

final rule was needed to regulate shipments of small sized red seedless

grapefruit.

However, the committee met again October 14, 1997, and revisited

the weekly percentage issue. The committee recommended another revision

in the weekly percentages. The committee recommended that the weekly

percentage for the final five weeks of the regulated period (October 27

through November 30, 1997) be changed from 30 percent to 35 percent.

In its discussion of this change, the committee reviewed the

percentages previously recommended and the current state of the crop.

In addition, the committee had some new information regarding this

season that was not available during its earlier meetings. On October

10, 1997, the Department released its crop estimate for Florida

grapefruit. The estimate for total Florida grapefruit was 54 million

boxes, a 3.2 percent reduction from last season. In addition, the

committee was provided information regarding size distribution

developed from a September size survey. The size survey was conducted

by the Department as part of the crop estimate and showed that more

small sizes were available than anticipated. The committee also had the

benefit of having operated several weeks under a weekly percentage

regulation.

During the committee's discussion, there were many comments that

the use of the weekly percentage rule was being effective. They

believed that this rule was having a positive effect on the market and

on returns. The weekly percentages, combined with a very limited

processing market, has forced the industry to do more spot picking for

the available markets.

Several persons attending the committee meeting encouraged the

committee to stay the course, and leave the weekly percentages as they

were established. However, others thought that the 30 percent weekly

percentage rate for the last five weeks of the regulation period might

be too restrictive. Concerns were again voiced that the method for

calculating allotment base was not always a good approximation of a

handler's historical shipments during this 11-week period. Based on the

shipment data available for the current season, and shipments from past

seasons, total weekly shipments of red seedless grapefruit during the

rest of the regulatory period are expected to exceed the average week

calculated for the industry of 976,782 cartons. There is also some

indication that shipments during the remainder of the regulation period

may be greater than in past seasons. With shipments running higher, the

committee concluded that establishing a 30 percent weekly percentage

rate in combination with the calculated average week would result in

available allotment of less than 30 percent of overall shipments.

The committee discussed the merits of changing the established

weekly percentage rate for the last five weeks from 30 percent to 35

percent. Such a change represents an additional industry allotment of

less than 50,000 cartons. The effect on an individual handler's

allotment would be minimal. However, there was discussion that such a

change would provide some additional flexibility for handlers.

In addition, having been operating under a weekly percentage for

several weeks, members stated that the regulation was being effective

and moving to a more restrictive level was unnecessary. Members agreed

that one of the most important goals of this regulation was to create

some discipline in the way fruit was picked and marketed. Several

individuals stated that there are indications from the current and past

regulatory weeks that maintaining the weekly percentage at 35 percent

for the remainder of the 11 weeks would continue to accomplish this

goal.

The committee examined the information on past shipments and on the

size distribution information available for the current season. Based

on the size survey, 37.6 percent of the crop is size 48 or 56. This

amount was somewhat larger than originally expected, indicating that

there was a greater volume of smaller sizes than the committee had

anticipated. Considering this, and the other information discussed, the

committee agreed that establishing a weekly percentage of 35 percent

for the remainder of the regulated period would address the goals of

this regulation, while providing handlers with some additional

flexibility.

The committee again included in its deliberations that if crop and

market conditions should change, the committee could recommend that the

percentages be increased or eliminated to provide for the shipment of

more small sizes. The committee considered the official crop estimate

and the information in the UF-IFAS study. Committee members also

discussed how the crop was sizing. Using this information on the 1997-

98 crop, the committee members believe that establishing the weekly

percentages as recommended will provide enough small sizes to supply

those markets without disrupting the markets for larger sizes.

Under the procedures in section 905.153, the quantity of sizes 48

and/or 56 red seedless grapefruit that may be shipped by a handler

during a regulated week is calculated using the recommended percentage

for that week. By taking the established weekly percentage times the

average weekly volume of red grapefruit handled by such handler in the

previous five seasons, handlers can calculate the volume of sizes 48

and/or 56 they may ship in a regulated week.

An average week was calculated by the committee for each handler

using the following formula. The total red seedless grapefruit

shipments by a handler during the 33 week period beginning the third

Monday in September and ending the first Sunday in May during the

previous five seasons were added and divided by five to establish an

average season. This average season was then divided by the 33 weeks in

a season to derive the average week. This average week is the base for

each handler for each of the 11 weeks contained in the regulation

period. The applicable weekly percentage is then multiplied by a

handler's average week. The total is that handler's allotment of sizes

48 and/or 56 red seedless grapefruit for the given week.

Under this amended interim final rule, the calculated allotment is

the amount of small sized red seedless grapefruit a handler can ship.

If the minimum size established under section 905.52 remains at size

56, handlers can fill their allotment with size 56, size 48, or a

combination of the two sizes such that the total of these shipments are

within the established limits. If the minimum size under the order is

48, handlers can fill their allotment with size 48 fruit such that the

total of these shipments are within the established limits. The

committee staff will perform the specified calculations and provide

them to each handler.

To illustrate, suppose Handler A shipped a total of 50,000 cartons,

64,600 cartons, 45,000 cartons, 79,500 cartons, and 24,900 cartons of

red seedless grapefruit in the last five seasons, respectively. Adding

these season totals and dividing by five yields an average season of

52,800 cartons. The average season is then divided by 33 weeks to yield

an average week, in this case, 1,600 cartons. This is handler A's base.

Assuming the weekly percentage is 50 percent, this percentage is then

applied to the handler's base. This provides this handler with a weekly

allotment of 800 cartons (1,600 x .50) of size 48 and/or 56.

[[Page 58637]]

The average week for handlers with less than five previous seasons

of shipments is calculated by the committee by averaging the total

shipments for the seasons they did ship red seedless grapefruit during

the immediately preceding five years and dividing that average by 33.

New handlers with no record of shipments have no prior period on which

to base their average week. Therefore, a new handler can ship small

sizes up to the established weekly percentage as a percentage of their

total volume of shipments during their first shipping week. Once a new

handler has established shipments, their average week is calculated as

an average of the weeks they have shipped during the current season.

This amended interim final rule establishes a weekly percentage of

35 percent for the last five weeks of the regulatory period (October 5

through November 30). Each regulation week begins Monday at 12:00 a.m.

and ends at 11:59 p.m. the following Sunday, since most handlers keep

records based on Monday being the beginning of the work week. If

necessary, the committee can meet and recommend changes in the

percentages to the Secretary at any time during the regulatory period.

The rules and regulations contain a variety of provisions designed

to provide handlers with some marketing flexibility. When regulation is

established by the Secretary for a given week, the committee calculates

the quantity of small red seedless grapefruit which may be handled by

each handler. Section 905.153(d) provides allowances for overshipments,

loans, and transfers of allotment. These allowances should allow

handlers the opportunity to supply their markets while limiting the

impact of small sizes on a weekly basis.

During any week for which the Secretary has fixed the percentage of

sizes 48 and/or 56 red seedless grapefruit, any handler can handle an

amount of sizes 48 and/or 56 red seedless grapefruit not to exceed 110

percent of their allotment for that week. The quantity of overshipments

(the amount shipped in excess of a handler's weekly allotment) will be

deducted from the handler's allotment for the following week.

Overshipments are not allowed during week 11 because there are no

allotments the following week from which to deduct the overshipments.

If handlers fail to use their entire allotments in a given week,

the amounts undershipped will not be carried forward to the following

week. However, a handler to whom an allotment has been issued can lend

or transfer all or part of such allotment (excluding the overshipment

allowance) to another handler. In the event of a loan, each party will,

prior to the completion of the loan agreement, notify the committee of

the proposed loan and date of repayment. If a transfer of allotment is

desired, each party will promptly notify the committee so that proper

adjustments of the records can be made. In each case, the committee

will confirm in writing all such transactions prior to the following

week. The committee can also act on behalf of handlers wanting to

arrange allotment loans or participate in the transfer of allotment.

Repayment of an allotment loan is at the discretion of the handlers

party to the loan.

The committee computes each handler's allotment by multiplying the

handler's average week by the percentage established by regulation for

that week. The committee will notify each handler prior to that

particular week of the quantity of sizes 48 and 56 red seedless

grapefruit such handler can handle during a particular week, making the

necessary adjustments for overshipments and loan repayments.

This rule does not affect the provision that handlers may ship up

to 15 standard packed cartons (12 bushels) of fruit per day exempt from

regulatory requirements. Fruit shipped in gift packages that are

individually addressed and not for resale, and fruit shipped for animal

feed are also exempt from handling requirements under specific

conditions. Also, fruit shipped to commercial processors for conversion

into canned or frozen products or into a beverage base are not subject

to the handling requirements under the order.

Section 8(e) of the Act requires that whenever grade, size, quality

or maturity requirements are in effect for certain commodities under a

domestic marketing order, including grapefruit, imports of that

commodity must meet the same or comparable requirements. This rule does

not change the minimum grade and size requirements under the order,

only the percentages of sizes 48 and/or 56 red grapefruit that may be

handled. Therefore, no change is necessary in the grapefruit import

regulations as a result of this action.

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 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 80 handlers subject to regulation under the

order and approximately 11,000 growers of citrus in the regulated area.

Small agricultural service firms, which includes handlers, have been

defined by the Small Business Administration (SBA) (13 CFR 121.601) 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.

Based on the Florida Agricultural Statistics Service and committee

data for the 1995-96 season, the average annual f.o.b. price for fresh

Florida red grapefruit during the 1995-96 season was $5.00 per \4/5\

bushel cartons for all grapefruit shipments, and the total shipments

for the 1995-96 season were 23 million cartons of grapefruit.

Approximately 20 percent of all handlers handled 60 percent of

Florida grapefruit 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, about 80 percent of grapefruit handlers could be

considered small businesses under SBA's definition and about 20 percent

of the handlers could be considered large businesses. The majority of

Florida grapefruit handlers, and growers may be classified as small

entities.

The committee believes that the over shipment of smaller sized red

seedless grapefruit early in the season has contributed to below

production cost returns for growers and lower on tree values. For the

past few seasons, returns on red seedless grapefruit have been at all

time lows, often not returning the cost of production. On tree prices

for red seedless grapefruit have declined steadily from $9.60 per box

during the 1989-90 season, to $3.11 per box during the 1992-93 season,

to $1.82 per box during the 1994-95 season, to $1.55 per box during the

1996-97 season. The committee believes that to stabilize the market and

improve returns to growers, demand for fresh red seedless grapefruit

must be stabilized and increased.

Under the authority of section 905.52 of the order, this amended

interim final rule limits the volume of small red seedless grapefruit

entering the fresh market for each week of the 5 week period beginning

the week of October

[[Page 58638]]

27. The rule limits the volume of sizes 48 and/or 56 red seedless

grapefruit by establishing the weekly percentages at 35 percent for the

last five weeks of the regulatory period (October 27 through November

30). Under such a limitation, the quantity of sizes 48 and/or 56 red

seedless grapefruit that may be shipped by a handler during a

particular week is calculated using the recommended percentage. By

taking the recommended percentage times the average weekly volume of

red grapefruit handled by such handler in the previous five seasons,

the committee calculates a handler's weekly allotment of small sizes.

This rule provides a supply of small sized red seedless grapefruit

sufficient to meet market demand, without saturating all markets with

these small sizes. This rule is necessary to help stabilize the market

and improve grower returns.

At the May 28, 1997, meeting, the committee recommended that the

percentage for each of the 11 weeks be established at the 25 percent

level. They reasoned that this percentage, when combined with the

average weekly shipments for the total industry, would provide a total

industry allotment of 244,195 cartons of sizes 48 and/or 56 red

seedless grapefruit per regulated week. This percentage would have

allowed total shipments of small red seedless grapefruit to approach

the 250,000 carton mark during regulated weeks without exceeding it.

At the May 28, 1997, meeting, there was discussion regarding the

expected impact of this change on handlers and growers in terms of

cost. Discussion focused on the possibility that market share could be

lost to Texas and that this rule could increase packinghouse costs.

According to EAB, limiting shipments of small Florida grapefruit

probably will not result in a major shift to Texas grapefruit because

the Texas industry is much smaller and has higher freight costs to some

markets supplied by Florida. The UF-IFAS study made similar findings.

Texas production is much smaller and has been susceptible to freezes

that take it out of the market. This has lessened its impact on the

overall grapefruit market.

The concern about packinghouse costs was that volume regulation

could mean lower packouts which may increase cost. However, the

availability of loans and transfers provides some flexibility. Also,

this rule only affects small sizes and only during the 11 week period.

By substituting larger sizes and using loans and transfers, packouts

should approach the weekly volume of seasons prior to this rule.

A weekly percentage of 25 percent, when combined with the average

weekly shipments for the total industry, would provide a total industry

allotment of 244,195 cartons of sizes 48 and/or 56 red seedless

grapefruit. Based on shipments from the past four seasons, a total

available allotment of 244,195 cartons would exceed actual shipments

for each of the first three weeks regulated under this rule.

In addition, if a 25 percent restriction on small sizes had been

applied during the 11 week period in the three seasons prior to last

season, an average of 4.2 percent of overall shipments during that

period would have been affected. The September 12, 1997, interim final

rule affected even fewer shipments by establishing less restrictive

weekly percentages. In addition, a large percentage of this volume most

likely could have been replaced by larger sizes. Under that action a

sufficient volume of small sized red grapefruit is still allowed into

all channels of trade, and allowances are in place to help handlers

address any market shortfall. Therefore, the overall impact on total

seasonal shipments and on industry cost should be minimal.

The committee also discussed the state of the market and the cost

of doing nothing. During the past three seasons, sizes 48 and 56

accounted for 34 percent of total shipments during the 11 week

regulatory period, with the average weekly percentage exceeding 40

percent of shipments. For the remainder of the season, sizes 48 and 56

represent only 26 percent of total shipments. While there is a market

for early grapefruit, the shipment of large quantities of small red

seedless grapefruit in a short period oversupplies the fresh market for

these sizes and negatively impacts the market for all sizes.

The early season crop tends to have a greater percentage of small

sizes. The large volume of smaller, lower priced fruit drives down the

price for all sizes. Early in the season, larger sized fruit commands a

premium price. In some cases, the f.o.b. is $4 to $6 a carton more than

for the smaller sizes. In early October, the f.o.b. for a size 27

averages around $10.00 per carton. This compares to an average f.o.b.

of $5.50 per carton for size 56. By the end of the 11 week period

outlined in this rule, the f.o.b. for large sizes has dropped to within

two dollars of the price for small sizes.

In the past three seasons, during the period covered by this rule,

prices of red seedless grapefruit have fallen from a weighted average

f.o.b. of $7.80 per carton to an average f.o.b. of $5.50 per carton.

Even though later in the season the crop has sized to naturally limit

the amount of smaller sizes available for shipment, the price structure

in the market has already been negatively affected. This leaves the

f.o.b. for all sizes around $5.00 to $6.00 per carton for the rest of

the season.

As previously stated, the on tree price of red seedless grapefruit

has also been falling. On tree prices for fresh red seedless grapefruit

have declined steadily from $9.60 per box during the 1989-90 season, to

$3.11 per box during the 1992-93 season, to $1.82 per box during the

1994-95 season, to $1.55 per box during the 1996-97 season. In many

cases, prices during the past two seasons have provided returns less

than production costs. This price reduction could force many small

growers out of business. If no action is taken, the UF-IFAS study

indicates that on tree returns will remain at levels around $1.50.

The September 12, 1997, interim final rule provided a supply of

small sized red seedless grapefruit to meet market demand, without

saturating all markets with these small sizes. The committee believes

that if the supply of small sizes were limited early in the season,

prices can be stabilized at a higher level. This provides increased

returns for growers. In addition, if more small grapefruit were allowed

to remain on the tree to increase in size and maturity, it could

provide greater returns to growers.

The committee surveyed shipment data covering the 11 week

regulatory period for the last four seasons and examined tables

outlining weekly f.o.b. figures for each size. The committee believed

that if shipments of small sizes can be maintained at around 250,000

cartons a week, prices should stabilize and demand for larger, more

profitable sizes should increase. The established weekly percentages,

when combined with the average weekly shipments for the total industry,

should help maintain industry shipments of sizes 48 and/or 56 red

seedless grapefruit at quantities close to the 250,000 carton level per

regulated week. A stabilized price that returns a fair market value

benefits both small and large growers and handlers.

The 11-week volume regulation may require more selective picking of

only the sizes desired, something that many growers are doing already.

The UF-IFAS study indicated that returns could increase if growers

harvest selectively and return to repick groves as the grapefruit

sized. This also allows growers to maximize returns on fresh grapefruit

by not picking unprofitable grades and sizes of red grapefruit that are

sent to the less profitable processing market. The study indicated that

selective harvesting can reduce the f.o.b.

[[Page 58639]]

cost per carton. The study also indicates that increasing minimum size

restrictions could help to raise returns.

Fifty-nine percent of red seedless grapefruit is shipped to fresh

market channels. There is a processing outlet for grapefruit not sold

into the fresh market. However, the vast majority of processing is

squeezing the grapefruit for juice. Because of the properties of the

juice of red seedless grapefruit, including problems with color, the

processing outlet is limited, and not currently profitable. Therefore,

it is essential that the market for fresh red grapefruit be fostered

and maintained. Any costs associated with this action are only for the

11 week regulatory period. However, benefits from this action could

stretch throughout the entire 33 week season. Even if this action was

successful only in raising returns a few pennies a carton, when applied

to 34 million cartons of red seedless grapefruit shipped to the fresh

market, the benefits should more than outweigh the costs.

The limits established in the weekly volume regulation are based on

percentages applied to a handler's average week. This process was

established by the committee because it was the most equitable. All

handlers have access to loans and transfers. Handlers and growers both

will benefit from increased returns. The costs or benefits of this rule

are not expected to be disproportionately more or less for small

handlers or growers than for larger entities.

The committee discussed alternatives to the recommended volume

regulation. The committee discussed eliminating shipments of size 56

grapefruit all together. Several members expressed that there is a

market for size 56 grapefruit. Members favored the percentage rule

recommended because it supplies a sufficient quantity of small sizes

should there be a demand for size 56. Therefore, the motion to

eliminate size 56 was rejected. Another alternative discussed was to do

nothing. However, the committee rejected this option, taking in account

that returns would remain stagnant without action. Thus, the majority

of committee members agreed that weekly percentages should be

established as recommended for the shipment of small sized red seedless

grapefruit for the 11 week period beginning September 15, 1997.

The committee met again August 26, 1997, and revisited the weekly

percentage issue. The committee recommended that the weekly percentages

be set to 50 percent for the first three weeks (September 15 through

October 5), 35 percent for the next three weeks (October 6 through

October 26), and 30 percent for the remainder of the 11 weeks.

In the discussion of that change, the committee reviewed the

initial and the revised percentages recommended, the current state of

the crop, and shipping information from past seasons. The committee

recognized that in terms of available allotment, even establishing a

weekly percentage of 25 percent for the first three regulated weeks

would not be restrictive. Shipment data from the past four seasons

indicate that available allotment under a 25 percent restriction would

have exceeded actual shipments for each of the first three weeks that

were regulated under the September 12, 1997, rule.

The committee determined that if available allotment would have

exceeded shipments for the first three weeks even when establishing a

percentage of 25 percent, it would give individual handlers greater

flexibility during these three weeks to establish the percentage at 50

percent. They argued that this would provide each handler with

additional allotment during these three weeks, reducing the number of

loans and transfers needed to utilize the available allotment, yet

having little or no affect on the volume of small sizes. The committee

also agreed that setting the percentage at 50 percent would still

provide some restriction should shipments for this period this season

exceed past quantities.

For the remainder of the 11 weeks, the committee believed that the

weekly percentage needed to be tighter than 50 percent which would

impose nearly no restriction but greater than 25 percent. The issue was

raised regarding the possible market impact when small sizes exceed

250,000 cartons in a week. The committee recognized that ideally,

244,195 cartons of red seedless grapefruit would be available to the

industry for each of the 11 weeks if the percentage was set at 25

percent. However, the committee was concerned that the true amount

available would be lower. Several members stated that setting a weekly

percentage at 25 percent to approximate the 250,000 cartons was based

on total utilization of allotment, and that assumption was

unreasonable. The committee agreed that loans and transfers are

beneficial, but that even with their availability a percentage of

allotment would most likely not be used.

At the August 27, 1997, meeting, several other members raised

concerns about focusing too much on total allotment available, rather

than on allotment per handler. Members concurred that the season for

red seedless grapefruit is approximately 33 weeks. However, this did

not mean that every handler was shipping during all 33 weeks. Using 33

weeks to divide an average season to calculate an average week often

resulted in amounts lower than their actual weekly shipments because

they were not shipping during all 33 weeks. They stated that applying a

25 percent restriction regulated them at a level closer to 15 percent

of their actual shipments during the regulation period.

Based on this discussion, the committee thought a weekly percentage

of 35 percent for the regulation weeks October 6 through October 26

would be a more appropriate level. They believe that because total

allotment will not be fully utilized and the way individual handlers

are affected, this level would provide a sufficient supply of small

sizes without overly exceeding amounts that would negatively affect

other markets.

The committee further recommended at the August 27, 1997, meeting,

that the weekly percentage for the remainder of the 11 weeks be

established at 30 percent. The committee resolved that moving into the

last five weeks of regulation, a tighter percentage was desirable. The

committee believed that as the industry moves into the season and

shipments increase, a weekly percentage of 30 percent would provide the

best balance between supply and demand for small sized red seedless

grapefruit.

However, on October 14, 1997, the committee met again and

recommended a further revision to the weekly percentages. The committee

recommended that the weekly percentages for the last five weeks of the

regulatory period be changed from 30 percent to 35 percent. In its

discussion of this change, the committee reviewed the initial

percentages recommended and the current state of the crop.

The committee also reviewed some new information regarding this

season that was not available during its earlier meetings. On October

10, 1997, the Department released its crop estimate for Florida

grapefruit. The estimate for total Florida grapefruit was 54 million

boxes, a 3.2 percent reduction from last season. In addition, the

committee was provided information regarding size distribution

developed from a September size survey. This survey was conducted by

the Department and showed a larger percentage of small sizes than

anticipated. The committee also had the benefit of having operated

several weeks under a weekly percentage regulation.

[[Page 58640]]

There were many comments by those attending the meeting that the

use of the weekly percentage rule was being effective. Members stated

that the rule was having a positive effect on the market and on

returns. Overall committee support for the regulation had increased.

The committee considered that the 30 percent weekly percentage rate

for the last five weeks of the regulation period may be too

restrictive. Reviewing shipment data for the beginning weeks of this

season and shipments from past seasons, the committee determined that

total weekly shipments during the rest of the regulatory period would

exceed the average week calculated for the industry of 976,782 cartons.

There was also some discussion that shipments during the remainder of

the regulation period may be greater than in past seasons. The

committee considered that with shipments running higher, establishing a

30 percent weekly percentage rate in combination with the calculated

average week would actually be establishing a rate more restrictive

than 30 percent of overall shipments.

The committee discussed the merits of changing the established

weekly percentage rate for the last five weeks from 30 percent to 35

percent. Such a change represents an additional industry allotment of

less than 50,000 cartons, and should have a minimal impact when

distributed to individual handlers. However, members thought that an

increase would provide some additional flexibility for handlers.

In addition, having been operating under a weekly percentage for

several weeks, members stated that the regulation was being effective

and moving to a more restrictive level was unnecessary. Members agreed

that one of the most important goals of this regulation was to create

some discipline in the way fruit was picked and marketed. Committee

members believed that maintaining the weekly percentage at 35 percent

for the remainder of the 11 weeks would continue to accomplish this

goal.

The committee examined the information on past shipments and on the

size distribution information available for the current season. Based

on the size survey, 37.6 percent of the crop is size 48 or 56. This

amount was somewhat larger than anticipated, indicating that there were

more smaller sized red grapefruit than the committee had originally

thought. Considering this, and the other information discussed, the

committee agreed that establishing a weekly percentage of 35 percent

for the remainder of the regulated period would address the goals of

this regulation, while providing handlers with some additional

flexibility.

This rule changes the requirements under the Florida citrus

marketing order. Handlers utilizing the flexibility of the loan and

transfer aspects of this action are required to submit a form to the

committee. The rule increases the reporting burden on approximately 80

handlers of red seedless grapefruit who will be taking about 0.03 hour

to complete each report regarding allotment loans or transfers. The

information collection requirements contained in this section have been

approved by the Office of Management and Budget (OMB) under the

provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. Chapter

35) and assigned OMB number 0581-0094. 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.

The Department has not identified any relevant Federal rules that

duplicate, overlap or conflict with this rule.

However, red seedless grapefruit must meet the requirements as

specified in the U.S. Standards for Grades of Florida Grapefruit (7 CFR

51.760 through 51.784) issued under the Agricultural Marketing Act of

1946 (7 U.S.C. 1621 through 1627). Further, the public comments

received concerning the proposed rule and previous interim final rule

relative to this action did not address the initial regulatory

flexibility analysis.

In addition, the committee meetings were widely publicized

throughout the 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 28, 1997, meeting, the

August 26, 1997, meeting, and the October 14, 1997, meeting were public

meetings and all entities, both large and small, were able to express

views on this issue.

A proposed rule concerning this action was published in the Federal

Register on Tuesday, July 29, 1997 (62 FR 40482). A 15-day comment

period was provided to allow interested persons to respond to the

proposal. Thirty five comments were received. An interim final rule

concerning this action was published in the Federal Register on Friday,

September 12, 1997 (62 FR 47913). Copies of both rules were mailed or

sent via facsimile to all committee members and to grapefruit growers

and handlers. The rules were also made available through the Internet

by the Office of the Federal Register.

The 35 comments to the proposed rule were addressed in the interim

final rule published in the Federal Register on Friday, September 12,

1997 (62 FR 47913).

In the September 12, 1997, interim final rule, a 10-day comment

period was provided to allow interested persons to respond to the rule.

A 10-day period was deemed appropriate because the rule needed to be in

place as soon as possible since handlers began shipping grapefruit in

September. The comment period ended September 22, 1997. One comment was

received.

As previously stated, subsequent to the end of the comment period,

the committee met and recommended modifying its recommendation. The

committee recommended that the weekly percentages be changed from 50

percent for the first three weeks (September 15 through October 5), 35

percent for the next three weeks (October 6 through October 26), and 30

percent for the remainder of the 11 weeks as specified in the interim

final rule published in September, to 50 percent for the first three

weeks (September 15 through October 5), and 35 percent for the

remainder of the 11 weeks.

Because of this recommendation, the Department has determined that

interested parties should be provided the opportunity to comment on the

changes to the interim final rule currently in effect. The Department

further believes that extending the comment period with no changes in

the percentages in effect limiting the shipments of small red seedless

grapefruit during the period of regulation would be detrimental to the

industry. Therefore, the Department is amending the current regulations

on small red seedless grapefruit through this interim final rule which

will allow 10 additional days to comment. The discussion of the comment

received in response to the previous interim final rule follows.

One comment was received in opposition to the interim final rule.

The comment opposed the rule because in past seasons their house packed

only white grapefruit. However, this season, they were able to identify

a market for red grapefruit. The comment further stated that because

they have no shipments of record for red seedless grapefruit for

previous seasons, they have no allotment base.

In establishing procedures by which to limit the percentage of

small sized red seedless grapefruit entering the fresh market, the

committee envisioned just such a situation, and included provisions to

address it. The committee

[[Page 58641]]

recognized that new handlers with no record of shipments have no prior

period on which to base their average week. Therefore, under the

procedures established in section 905.153, a new handler can ship small

sizes up to the established weekly percentage as a percentage of their

total volume of shipments during their first shipping week. Once a new

handler has established shipments, their average week is calculated as

an average of the weeks they have shipped during the current season.

In addition, the weekly percentage regulation only applies to sizes

48 and/or 56 red seedless grapefruit. There are no volume restrictions

on shipments of larger sized red seedless grapefruit that meet the

minimum grade and size requirements under the order.

The commenter further stated that he did not believe that they

would have access to transfers or loans. The transfer and loan

procedures do not exclude any handler. It is the handler's

responsibility to contact other handlers to locate available allotment.

The committee staff is available to provide some assistance with

locating available allotment. At its October meeting, the committee

discussed the transfer and loan procedure. The procedures are being

utilized, and based on comments, those seeking additional allotment

have, in most cases, been able to acquire it through loans or

transfers.

After analyzing the comment received and other available

information, including the additional recommendation by the committee,

the Department has concluded that this interim final rule is

appropriate.

A 10-day comment period is provided to allow interested persons to

respond to this proposal. A 10-day period is deemed appropriate because

this action amends the weekly regulation period beginning on October

27, through November 30, 1997. Adequate time will be necessary so that

any changes, if necessary, can be made to the regulations before the

end of the five week period. All written comments timely received will

be considered before a final determination is made on this matter.

After consideration of all relevant matter presented, including the

information and recommendations 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 and determined upon good cause that it is

impracticable, unnecessary, and contrary to the public intent 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 (5 U.S.C. 553)

because this rule needs to be in place since handlers have already

begun shipping grapefruit. This rule is necessary to help stabilize the

market and to improve grower returns. Further, handlers are aware of

this rule, which was recommended at public meetings. This action amends

the weekly regulation beginning October 27, 1997. Also, a 15-day

comment period was provided for in the proposed rule, an additional 10-

day comment period was provided for in the interim final rule, and an

addition 10-day comment period is provided for in this amended interim

final rule.

List of Subjects in 7 CFR Part 905

Grapefruit, Marketing agreements, Oranges, Reporting and

recordkeeping requirements, Tangelos, Tangerines.

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. Section 905.601 is revised to read as follows:

Sec. 905.601 Red seedless grapefruit regulation 101.

The schedule below establishes the weekly percentages to be used to

calculate each handler's weekly allotment of small sizes. If the

minimum size in effect under section 905.306 for red seedless

grapefruit is size 56, handlers can fill their allotment with size 56,

size 48, or a combination of the two sizes such that the total of these

shipments are within the established weekly limits. If the minimum size

in effect under section 905.306 for red seedless grapefruit is 48,

handlers can fill their allotment with size 48 red seedless grapefruit

such that the total of these shipments are within the established

weekly limits. The weekly percentages for sizes 48 and/or 56 red

seedless grapefruit grown in Florida, which may be handled during the

specified weeks are as follows:

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

Weekly

Week percentage

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

(a) 9/15/97 through 9/21/97................................. 50

(b) 9/22/97 through 9/28/97................................. 50

(c) 9/29/97 through 10/5/97................................. 50

(d) 10/6/97 through 10/12/97................................ 35

(e) 10/13/97 through 10/19/97............................... 35

(f) 10/20/97 through 10/26/97............................... 35

(g) 10/27/97 through 11/2/97................................ 35

(h) 11/3/97 through 11/9/97................................. 35

(i) 11/10/97 through 11/16/97............................... 35

(j) 11/17/97 through 11/23/97............................... 35

(k) 11/24/97 through 11/30/97............................... 35

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

Dated: October 23, 1997.

Robert C. Keeney,

Deputy Administrator, Fruit and Vegetable Programs.

[FR Doc. 97-28823 Filed 10-27-97; 3:42 pm]

BILLING CODE 3410-02-P