Voluntary Shell Egg Regulations

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 56

[Docket No. PY-97-003]

Voluntary Shell Egg Regulations

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: The Agricultural Marketing Service (AMS) is amending the

regulations governing the voluntary shell egg grading program. The

revisions require that scales of stated precision be provided to the

grader; provide an alternative grademark for shell eggs; provide for

the use of a ``Produced From'' grademark to officially identify

products that originate from officially graded shell eggs; and remove

the requirement for continuous overflow of water during the egg washing

process. From time to time, sections in the regulations are affected by

changes in egg processing technology and egg marketing. This rule

updates the regulations to reflect these changes.

EFFECTIVE DATE: April 20, 1998.

FOR FURTHER INFORMATION CONTACT: Douglas C. Bailey, Chief,

Standardization Branch, (202) 720-3506.

SUPPLEMENTARY INFORMATION: This rule has been determined to be not

significant for purposes of Executive Order 12866 and has not been

reviewed by the Office of Management and Budget (OMB).

This rule has been reviewed under Executive Order 12988, Civil

Justice Reform. This action 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. There are no administrative procedures which must be exhausted

prior to any judicial challenge to the provisions of this rule.

Pursuant to the requirements set forth in the Regulatory

Flexibility Act (RFA), AMS has considered the economic impact of this

action on small entities as defined in the RFA (5 U.S.C. 601). There

are almost 200 plants using the Agency's shell egg grading services and

many of them are small entities.

Requiring electronic digital-display scales will affect some

processors by requiring the purchase of one or more scales that cost

from $150 to $1,000 each. This equipment will improve the accuracy of

egg weight determinations, allowing processors to avoid the expense

incurred when product is unnecessarily retained and re-processed.

Shell egg processors will be allowed to use a shield displayed in

three colors on packaging materials to officially identify USDA graded

eggs. Similarly, producers of products originating from officially

graded shell eggs will be allowed to use a ``Produced From'' grademark

on packaging materials. The use of these alternative forms of the USDA

grademark gives processors greater flexibility in packaging and

marketing their products. Since these alternative grademarks are used

at the processors' discretion, any economic impact caused by their use

is by the choice of the processors.

Removing the requirement for the continuous overflow of water

during egg washing will conserve water and energy resources, decrease

operating expenses of processors, and lessen the environmental impact

of shell egg processing. This is expected to have a positive economic

impact on processors.

Other editorial-type changes will clarify or update the existing

regulations and will have no additional economic impact on entities

using voluntary shell egg grading services.

For the above reasons, the Agency has certified that this action

will not have a significant impact on a substantial number of small

entities.

The information collection requirement in Sec. 56.37 to be amended

by this rule has been previously approved by OMB and assigned OMB

Control Number 0581-0127 under the Paperwork Reduction Act (44 U.S.C.

Chapter 35).

Background and Comments

Shell egg grading is a voluntary program provided under the

Agricultural Marketing Act of 1946, as amended, and is offered on a

fee-for-service basis. It is designed to assist the orderly marketing

of shell eggs by providing for the official certification of egg

quality, quantity, size, temperature, packaging, and other factors.

Changes in egg processing technology and egg marketing require that the

regulations governing shell egg grading be updated from time to time.

A proposed rule to amend the voluntary shell egg grading

regulations was published in the Federal Register (62 FR 42944) on

August 11, 1997. Comments on the proposed rule were solicited from

interested parties until October 10, 1997.

During the 60-day comment period, the Agency received eight

comments regarding the proposal. Comments from two State government

agencies and one egg producer association expressed overall support for

the proposal. The one egg producer who commented objected to the

proposed requirement for precision scales. Comments from two State

cooperative extension service specialists and two equipment

manufacturers dealt with egg wash water overflow. The proposals and the

comments are discussed below.

Scales

Grading personnel certify egg weights according to the official

U.S. weight classes. Today, the highly mechanized, state-of-the-art

equipment used to package shell eggs weighs individual eggs with high

precision to satisfy container weight requirements. For processors to

receive fair, uniform, accurate weight certification, graders need to

have similarly precise scales to certify egg weights. Therefore, the

Agency proposed to amend Sec. 56.17(a). The proposal requires plants to

replace balance or spring-type scales with electronic digital-display

scales gradated in increments of \1/10\-ounce or less and \1/4\-ounce

or less for weighing individual eggs and consumer packages,

respectively. It also requires that scales used for weighing shipping

containers be gradated in increments of \1/4\-pound or less. The

proposal continues to require test weights for calibrating all scales.

[[Page 13330]]

The one egg producer who commented felt that existing scales should

only be replaced when they are clearly unreliable. One of the State

government agencies commented that all plants receiving resident

grading service in their State had already replaced their balance and

spring-type scales with digital scales that comply with the proposed

rule.

The Agency still finds the proposal to establish a minimum level of

scale precision beneficial and appropriate for the conduct of a

nationwide grading program and will issue it as a final rule. We

continue to be of the view that for processors to receive fair,

uniform, accurate weight certification, graders need to have similarly

precise scales to certify egg weights and the change to the regulation

made by this action will accomplish this.

Grademarks

Many processors want to identify their consumer-pack USDA graded

shell eggs, or products prepared from those eggs, with a USDA

grademark. The Agency proposed amending Sec. 56.36 to allow processors

additional flexibility in packaging and marketing their products. The

proposal permits the use of a new grademark that contains horizontal

bands of three colors. It also provides for the use of a new ``Produced

From'' grademark to officially identify products produced from U.S.

Grade AA or Grade A shell eggs for which there are no U.S. grade

standards (e.g., pasteurized shell eggs). It also removes the option of

using terms such as ``Federal-State Graded'' within the grademark

because this option is no longer used. Finally, the proposal clarifies

the organization and wording of Sec. 56.36 and corrects references to

Sec. 56.36 that are in Sec. 56.37 and Sec. 56.40.

There were no comments about this proposal and the Agency will

issue the final rule as it was proposed.

Overflow of Wash Water

Basically, the egg washing process involves moving eggs through

brushes under a spray of wash water delivered through a system of

pipes. The wash water, a mixture of water and an approved cleaning

compound, is filtered and recirculated through the system of pipes from

a holding tank. The tank is designed to permit both the inflow and

overflow of wash water. Overflow occurs when the volume of wash water

exceeds the holding capacity of the tank. When the tank is filled with

water and the washer is turned on, the water is pumped from the tank

into the system of pipes and the water level in the tank lowers. Also,

some water is lost due to evaporation and other causes. Replacement

water is added continuously and cleaning compound is added as necessary

to maintain the cleaning efficacy of the wash water. Approximately

every 4 hours and between shifts, wash water tanks are emptied and

refilled with clean, potable water.

The Agency currently requires that replacement water be added

continuously to the wash water in order to maintain a continuous

overflow of water. However, the rate at which replacement water is

added to today's egg washing equipment is not always of sufficient

volume to provide for continuous overflow, particularly at the

beginning of shifts or when the washing equipment is stopped and

restarted during the day. Accordingly, the Agency proposed to amend

Sec. 56.76(e)(5) by omitting the requirement for maintaining a

continuous overflow of water in shell egg washers.

One equipment manufacturer expressed support for the proposal as

written. Another equipment manufacturer recommended that the regulation

be reworded to suggest that the overflow of water be expected 10 to 15

minutes after start-up, and recommended that egg washers be equipped

with a double rinse and traveling filter system. The two State

cooperative extension specialists raised the concern that by not

requiring continuous overflow of water, waste could build up in the

wash water and overwhelm the detergents and sanitizers.

The Agency recognizes that rate of replacement water inflow,

concentration of cleaning compound in the wash water, and rate of

overflow all affect wash water quality. The proposal was published in

recognition that the continuous overflow of wash water is not necessary

to maintain the cleaning efficacy of the wash water. The Agency's

existing requirement that replacement water be continuously added to

the washing system will likely result in a periodic overflow of wash

water during the washing process, with the frequency and rate of

overflow dependent on factors such as the rate of replacement water

inflow, tank size, rate of evaporation, and the number of eggs cleaned.

While the proposal would eliminate the requirement for continuous

overflow of wash water, it would not eliminate the periodic overflow of

wash water.

The Agency continues to find no evidence that continuous wash water

overflow is necessary to maintain the cleaning efficacy of wash water,

and no comments provided evidence to the contrary. Moreover, the Agency

believes the proposal to eliminate continuous overflow of wash water

provides egg packers the flexibility they need to responsibly use

today's egg cleaning equipment and technologies and to provide their

customers with the cleanest eggs possible. Therefore, it will issue the

final rule as proposed.

List of Subjects in 7 CFR Part 56

Eggs and egg products, Food grades and standards, Food labeling,

Reporting and record keeping requirements.

For reasons set forth in the preamble, Title 7, Code of Federal

Regulations Part 56 is amended as follows:

PART 56--VOLUNTARY GRADING OF SHELL EGGS

1. The heading for part 56 is revised to read as set forth above.

1a. The authority citation for part 56 continues to read as

follows:

Authority: 7 U.S.C. 1621-1627.

2. In Sec. 56.17, paragraphs (a)(2) and (a)(3) are removed and new

paragraphs (a)(2) through (5) are added to read as follows:

Sec. 56.17 Facilities and equipment for graders.

* * * * *

(a) * * *

(2) Electronic digital-display scales graduated in increments of

\1/10\-ounce or less for weighing individual eggs and test weights for

calibrating such scales. Plants packing product based on metric weight

must provide scales graduated in increments of 1-gram or less;

(3) Electronic digital-display scales graduated in increments of

\1/4\-ounce or less for weighing the lightest and heaviest consumer

packages packed in the plant and test weights for calibrating such

scales;

(4) Scales graduated in increments of \1/4\-pound or less for

weighing shipping containers and test weights for calibrating such

scales;

(5) An acceptable candling light.

* * * * *

3. Section 56.36 is revised to read as follows:

Sec. 56.36 Form of grademark and information required.

(a) Form of official identification symbol and grademark. (1) The

shield set forth in Figure 1 of this section shall be the official

identification symbol for purposes of this part and when used,

imitated, or simulated in any manner in connection with shell eggs,

shall be deemed prima facia to constitute a representation that the

product has been

[[Page 13331]]

officially graded for the purposes of Sec. 56.2.

(2) Except as otherwise authorized, the grademark permitted to be

used to officially identify USDA consumer-graded shell eggs shall be of

the form and design indicated in Figures 2 through 4 of this section.

The shield shall be of sufficient size so that the printing and other

information contained therein is legible and in approximately the same

proportion as shown in these figures.

(3) The ``Produced From'' grademark in Figure 5 of this section may

be used to identify products for which there are no official U.S. grade

standards (e.g., pasteurized shell eggs), provided that these products

are approved by the Agency and are prepared from U.S. Consumer Grade AA

or A shell eggs under the continuous supervision of a grader.

(b) Information required on grademark. (1) Except as otherwise

authorized by the Administrator, each grademark used shall include the

letters ``USDA'' and the U.S. grade of the product it identifies, such

as ``A Grade,'' as shown in Figure 2 of this section. Such information

shall be printed with the shield and the wording within the shield in

contrasting colors in a manner such that the design is legible and

conspicuous on the material upon which it is printed.

(2) The size or weight class of the product, such as ``Large,'' may

appear within the grademark as shown in Figure 3 of this section. If

the size or weight class is omitted from the grademark, it must appear

prominently on the main panel of the carton.

(3) Except as otherwise authorized, the bands of the shield in

Figure 4 of this section shall be displayed in three colors, with the

color of the top, middle, and bottom bands being blue, white, and red,

respectively.

(4) The ``Produced From'' grademark in Figure 5 of this section may

be any one of the designs shown in Figures 2 through 4 of this section.

The text outside the shield shall be conspicuous, legible, and in

approximately the same proportion and close proximity to the shield as

shown in Figure 5 of this section.

(5) The plant number of the official plant preceded by the letter

``P'' must be shown on each carton or packaging material.

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4. In Sec. 56.37, the first sentence is revised to read as follows:

Sec. 56.37 Lot marking of officially identified product.

Each carton identified with the grademarks shown in Sec. 56.36

shall be legibly lot numbered on either the carton or the consumer

package. * * *

5. In Sec. 56.40, paragraph (a) is revised to read as follows:

Sec. 56.40 Grading requirements of shell eggs identified with consumer

grademarks.

(a) Shell eggs to be identified with the grademarks illustrated in

Sec. 56.36 must be individually graded by a grader or by authorized

personnel pursuant to Sec. 56.11 and thereafter check graded by a

grader.

* * * * *

6. In Sec. 56.76, the first sentence in paragraph (e)(5) is revised

to read as follows:

Sec. 56.76 Minimum facility and operating requirements for shell egg

grading and packing plants.

* * * * *

(e) * * *

(5) Replacement water shall be added continuously to the wash water

of washers. * * *

* * * * *

Dated: March 13, 1998.

Kenneth C. Clayton,

Acting Administrator, Agricultural Marketing Service.

[FR Doc. 98-7156 Filed 3-18-98; 8:45 am]

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