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

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## Record

- **Collection:** Federal Register
- **Document type:** Rule
- **Published:** December 13, 1999
- **Citation:** 64 FR 69375

## Text

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 906

[Docket No. FV99-906-3 FIR]

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

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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

SUMMARY: The Department of Agriculture (Department) is adopting, as a
final rule, without change, the provisions of an interim final rule
which changed the pack requirements prescribed under the marketing
order covering oranges and grapefruit grown in the Lower Rio Grande
Valley in Texas. The marketing order regulates the handling of such
fruit and is administered locally by the Texas Valley Citrus Committee
(Committee). This rule continues in effect the changes to the orange
and grapefruit pack sizes so that each pack size reflects the actual
number of fruit in a \7/10\ bushel carton. It also more closely aligns
the pack sizes for Texas oranges with the pack sizes used by shippers
of California oranges. The rule also continues in effect conforming
changes to the pack size references in the minimum size regulations.
Continuation of these changes will enable Texas handlers to compete
more effectively in the marketplace.

EFFECTIVE DATE: January 12, 2000.

FOR FURTHER INFORMATION CONTACT: Belinda G. Garza, Regional Manager,
McAllen Marketing Field Office, Marketing Order Administration Branch,
Fruit and Vegetable Programs, AMS, USDA, 1313 E. Hackberry, McAllen,
Texas 78501; telephone: (956) 682-2833, Fax: (956) 682-5942; or George
Kelhart, Technical Advisor, Marketing Order Administration Branch,
Fruit and Vegetable Programs, AMS, USDA, room 2525-S, P.O. Box 96456,
Washington, DC 20090-6456; telephone: (202) 720-2491, Fax: (202) 720-
5698.
Small businesses may request information on complying with this
regulation by contacting Jay Guerber, Marketing Order Administration
Branch, Fruit and Vegetable Programs, AMS, USDA, P.O. Box 96456, room
2525-S, Washington, DC 20090-6456; telephone (202) 720-2491, Fax: (202)
720-5698, or E-mail: Jay.G[email protected].

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement and Order No. 906, as amended (7 CFR part 906), regulating
the handling of oranges and grapefruit grown in the Lower Rio Grande
Valley in Texas, hereinafter referred to as the ``order.'' The
marketing agreement and order are effective under the Agricultural
Marketing Agreement Act of 1937, as amended (7 U.S.C. 601-674),
hereinafter referred to as the ``Act.''
The Department is issuing this rule in conformance with Executive
Order 12866.
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. This rule is not intended to have retroactive effect.
This rule will not preempt any State or local laws, regulations, or
policies, unless they present an irreconcilable conflict with this
rule.
The Act provides that administrative proceedings must be exhausted
before parties may file suit in court. Under section 608c(15)(A) of the
Act, any handler subject to an order may file with the Secretary a
petition stating that the order, any provision of the order, or any
obligation imposed in connection with the order is not in accordance
with law and request a modification of the order or to be exempted
therefrom. A handler is afforded the opportunity for a hearing on the
petition. After the hearing the Secretary would rule on the petition.
The Act provides that the district court of the United States in any
district in which the handler is an inhabitant, or has his or her
principal place of business, has jurisdiction to review the Secretary's
ruling on the petition, provided an action is filed not later than 20
days after the date of the entry of the ruling.
This rule continues in effect the changes to the previous orange
and grapefruit pack sizes from a 1\2/5\ bushel box basis to pack sizes
based upon the actual number of fruit packed in a \7/10\ bushel carton.
The orange pack sizes will also be more closely aligned to the pack
sizes and size tolerances used by California orange shippers. The rule
also continues in effect the conforming changes to the pack size
references in the minimum size regulations for oranges and grapefruit
so the minimum size requirements remain the same as previously
specified. Continuation of these changes will enable handlers to
compete more effectively in the marketplace.
The Committee's Grade and Size Subcommittee met on April 20 and 29,
and May 4, 1999, and discussed possible changes to the order's pack
requirements. At a meeting on May 13, 1999, the Subcommittee
recommended and the Committee unanimously approved changes to the
regulations. On July 1, 1999, the Committee met again and unanimously
recommended the following changes to the orange and grapefruit pack and
conforming changes to the size regulations.
(1) Eliminate two pack size tables for different orange varieties,
change the pack sizes to a \7/10\ bushel carton basis for all orange
varieties to be consistent with California pack sizes, and add a pack
size 64 to the California sizes. The changes resulted in one pack size
chart ranging from pack size 24 to 138 with minimum and maximum
diameter size ranges for all oranges, and, when packed in \7/10\ bushel
containers, the pack sizes reflect the actual number of fruit in the
container;
(2) Replace the 1\2/5\ bushel box references in the regulations
with \7/10\ bushel carton references;
(3) Change the grapefruit pack sizes based on a 1\2/5\ bushel box
to pack sizes based upon the actual number of fruit packed in a \7/10\
bushel carton; and
(4) Make conforming changes to the size requirements in
Sec. 906.365 based on the above changes to keep the minimum size
requirements for oranges and grapefruit the same as previously
specified.
Under the terms of the order, fresh market shipments of oranges and
grapefruit grown in the Lower Rio Grande Valley in Texas are required
to be inspected and meet grade, size, container, and pack requirements.
Section 906.40 authorizes the issuance of pack regulations. Section
906.340(a)(2) of the order's rules and regulations outlines pack
requirements for fresh shipments of Texas oranges and grapefruit.

[[Page 69376]]

Changes to the Pack Requirements for Oranges

Section 906.340(a)(2)(i) specifies pack requirements for oranges.
It previously included two tables specifying pack sizes in terms of
minimum and maximum diameters for each specified pack size, for
different varieties of oranges. Packing tolerances for off-size
continue to be specified, together with standard pack requirements.
Previously, oranges were divided into two categories for the
purpose of pack regulations: (1) Navel, Valencia, and similar late-type
oranges, and (2) all other varieties of oranges. For all types of
oranges, 13 pack sizes ranging from pack size 46 (the largest fruit) to
pack size 324 (the smallest fruit) were specified. The minimum
diameters for Navel, Valencia, and similar late-type oranges for each
of the pack sizes were \2/16\ inch smaller than those specified for all
other oranges, while the maximum diameters for all varieties of oranges
in the 13 pack sizes were the same.
All oranges, however, must have been at least pack size 288, except
that the minimum diameter limit was 2\6/16\ inches.
The previous orange pack sizes and minimum and maximum diameters
are shown in the following tables:

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

Table I--Oranges, Except Navels, Valencias, and Similar Late-Type
Oranges
[1\2/5\ bushel box]
------------------------------------------------------------------------
Diameter in inches
Pack size -------------------------
Minimum Maximum
------------------------------------------------------------------------
46's.......................................... 4\5/16\ 5
54's or 56's.................................. 4\2/16\ 4\12/16\
64's.......................................... 3\15/16\ 4\8/16\
70's or 72's.................................. 3\13/16\ 4\5/16\
80's.......................................... 3\10/16\ 4\2/16\
100's......................................... 3\7/16\ 3\13/16\
112's......................................... 3\5/16\ 3\11/16\
125's......................................... 3\3/16\ 3\9/16\
163's......................................... 2\15/16\ 3\5/16\
200's......................................... 2\11/16\ 3\1/16\
252's......................................... 2\7/16\ 2\12/16\
288's......................................... 2\4/16\ 2\9/16\
324's......................................... 2\3/16\ 2\8/16\
------------------------------------------------------------------------

Table II (Section 906.340(a)(2)(i)(c))

Table II--Navels, Valencia and Similar Late-Type Oranges
[1\2/5\ bushel box]
------------------------------------------------------------------------
Diameter in inches
Pack size -------------------------
Minimum Maximum
------------------------------------------------------------------------
46............................................ 4\3/16\ 5
54............................................ 4 4\12/16\
64............................................ 3\13/16\ 4\8/16\
70 or 72...................................... 3\11/16\ 4\5/16\
80............................................ 3\8/16\ 4\2/16\
100........................................... 3\5/16\ 3\13/16\
112........................................... 3\3/16\ 3\11/16\
125........................................... 3\1/16\ 3\9/16\
163........................................... 2\13/16\ 3\5/16\
200........................................... 2\9/16\ 3\1/16\
252........................................... 2\5/16\ 2\12/16\
288........................................... 2\2/16\ 2\9/16\
------------------------------------------------------------------------

All oranges must have been at least Pack Size 288, except that the
minimum diameter limit for Pack Size 288 oranges in any lot was 2\6/16\
inches.
The Committee recommended changing the orange pack sizes to the
pack sizes used by the California citrus industry. A study by the
Committee indicated that approximately 39 percent of Texas oranges are
sold in Texas, and about 36 percent in California. Almost 90 percent of
Texas oranges are marketed west of the Mississippi River. California
dominates the western domestic orange market with fruit available on a
year-round basis. Texas, on the other hand, is a relatively small
producer of oranges with a marketing season from late September through
May. Previously, the pack sizes for California oranges were different
from those for Texas oranges. Furthermore, as mentioned before, Texas
previously had two orange size tables--one for Navels, Valencia, and
similar late-type oranges, and another for all other varieties.
Since California dominates the orange market, produce buyers are
much more familiar with California orange pack sizes than pack sizes
previously used by the Texas citrus industry. Buyers' computers tended
to have California pack sizes listed, but not Texas'. This put handlers
of Texas oranges at a competitive disadvantage. Further, Texas did not
previously pack a size 138 orange because this size was not a specified
pack size. The closest Texas sizes were 126 and 144. As a result, the
Texas orange industry could not take advantage of size 138 business.
Moreover, retailers, wholesalers, food service distributors, and
brokers were much more familiar with California orange pack sizes than
Texas orange pack sizes because California ships a much larger volume
and is present in the marketplace year-round. Having pack sizes
different from California's was a marketing problem that affected all
producers and handlers and caused the Texas industry to lose fresh
orange sales. The Committee believed that the Texas pack sizes needed
to be more closely aligned with the California pack sizes. In addition
to the pack sizes used by the California industry, the Committee
recommended a pack size 64, presently a very popular size for the Texas
industry, ranging from a minimum diameter of 2\11/16\ inches to a
maximum of 3\10/16\ inches.
The Committee unanimously recommended orange pack sizes ranging
from pack size 24 to 138 with minimum and maximum diameters based on
the \7/10\ bushel carton and the actual number of fruit in that size
carton, as shown in the following table:

Oranges
[\7/10\ bushel carton]
------------------------------------------------------------------------
Diameter in inches
Pack size/ number of oranges -------------------------
Minimum Maximum
------------------------------------------------------------------------
24............................................ 3\12/16\ 5\1/16\
32............................................ 3\6/16\ 4\9/16\
36............................................ 3\4/16\ 4\6/16\
40............................................ 3\2/16\ 4\4/16\
48............................................ 2\15/16\ 4
56............................................ 2\13/16\ 3\13/16\
64............................................ 2\11/16\ 3\10/16\
72............................................ 2\9/16\ 3\8/16\
88............................................ 2\8/16\ 3\4/16\
113........................................... 2\7/16\ 3
138........................................... 2\6/16\ 2\12/16\
------------------------------------------------------------------------

Previously, Texas had minimum and maximum orange size diameters in
inches and fractions of an inch for each pack size based on the 1\2/5\
bushel box. The Committee recommended changes to the minimum and
maximum diameter size ranges for the proposed pack sizes to a \7/10\
bushel carton basis as shown in the foregoing table because 1\2/5\
bushel boxes were no longer used by the industry.
Adopting the California orange pack sizes for all varieties of
oranges eliminated the two separate pack size tables previously in the
orange pack regulations. Separate tables for different varieties of
oranges had been established to allow for varietal size differences.
Some varieties tend to be round and others slightly oblong, and older
mechanical fruit sizing equipment could not accurately size the
differently shaped fruit. Present day mechanical fruit sizers, however,
accurately size all varieties of oranges regardless of shape, and two
separate pack size tables for different orange varieties were no longer
necessary.
Language was added to clarify that if \7/10\ bushel containers of
oranges are marked, the count of fruit in each

[[Page 69377]]

container shall not be less than the count marked on the container, but
may exceed the count marked on the container by not more than 8
percent. The 8 percent tolerance is used in California. When packed in
marked containers other than the \7/10\ bushel, the pack sizes
applicable to \7/10\ bushel containers shall also apply to such
containers.

Replace References to the 1\2/5\ Bushel Box With a \7/10\ Bushel
Carton

As discussed earlier, the Texas orange and grapefruit regulations
previously referred to a 1\2/5\ bushel box. The 1\2/5\ bushel box was a
carryover from past years when fruit was packed in a wooden ``Bruce''
box, which is twice the size of the common \7/10\ bushel carton
presently used in commercial business. The Committee recommended
changing all references to the 1\2/5\ bushel box to a \7/10\ bushel
carton. References to the 1\2/5\ bushel box and associated fruit pack
sizes based on that container were confusing to the industry. All
weekly Committee utilization reports, annual reports, and other
documents reference the \7/10\ bushel carton equivalent. With the
elimination of the 1\2/5\ bushel box, the orange pack sizes are in
accordance with the count in a \7/10\ bushel carton.
The \7/10\ bushel carton equivalent and fruit count per carton is
now the accepted unit of measure for oranges and grapefruit within the
Texas industry. Handlers actually pack as to count of fruit in the box.
Eliminating all references to the 1\2/5\ bushel box and related pack
sizes minimizes confusion among all producers and handlers.

Changes to the Pack Requirements for Grapefruit

Section 906.340(a)(2)(ii) specifies pack requirements for
grapefruit based upon the United States Standards for Grades of
Grapefruit (Texas and States other than Florida, California, and
Arizona), hereinafter referred to as the ``grapefruit standards'', with
some exceptions. Grapefruit was previously required to be packed within
the diameter limits specified for the various pack sizes defined in 7
CFR 51.630(c) of the grapefruit standards, based on a 1\2/5\ bushel
box. Exceptions were that the minimum diameter limit for pack size 96
grapefruit was 3\9/16\ inches, and for pack size 112 grapefruit, the
minimum diameter was 3\5/16\ inches. The standard pack and standard
sizing requirements, and packing tolerances remain unchanged.
The grapefruit standards define eight pack sizes. The smallest is
size \125/126\, which ranges from a minimum of 3 inches to a maximum of
3\8/16\ inches in diameter. The largest is size 46 which ranges from
4\5/16\ to 5 inches in diameter. The Texas grapefruit pack regulations
included a size 36 grapefruit, which ranged from 4\15/16\ to 5\9/16\
inches in diameter. This pack size was not in the grapefruit standards.
The minimum diameters for pack sizes 96 and 112 were different from
those specified in the grapefruit standards. The grapefruit standards
specify 3\6/16\ inches and 3\2/16\ inches, and the order requirements
specify 3\9/16\ inches and 3\5/16\ inches, respectively. The maximum
diameters are the same.
The Committee recommended revising the grapefruit pack sizes based
on a \7/10\ bushel carton, as shown in the following table, rather than
the 1\2/5\ bushel box, which was obsolete and confusing. As mentioned
earlier, the Texas citrus industry for many years had used the \7/10\
bushel carton as its standard shipping container. Previously, any
reference to a 1\2/5\ bushel of fruit had to be converted to \7/10\
bushel equivalents. With the elimination of the 1\2/5\ bushel box,
grapefruit pack sizes reference the number of grapefruit that will pack
in a \7/10\ bushel carton.

Grapefruit
[\7/10\ bushel carton]
------------------------------------------------------------------------
Diameter in inches
Pack size/number of grapefruit -------------------------
Minimum Maximum
------------------------------------------------------------------------
18(36)........................................ 4\15/16\ 5\9/16\
23(46)........................................ 4\5/16\ 5
27(\54/56\)................................... 4\2/16\ 4\12/16\
32(64)........................................ 3\15/16\ 4\8/16\
36(\70/72\)................................... 3\13/16\ 4\5/16\
40(80)........................................ 3\10/16\ 4\2/16\
48(96)........................................ 3\9/16\ 3\14/16\
56(112/113)................................... 3\5/16\ 3\10/16\
------------------------------------------------------------------------
(Numbers in parentheses represent previous pack sizes.) Minimum and
maximum diameter ranges for the new pack sizes (not in parentheses)
are the same as currently specified.

Language was also added by the interim final rule to clarify that
if \7/10\ bushel containers of grapefruit are marked, the count of
fruit in the container shall not be less than the count marked on the
container, but may exceed the count marked on the container by not more
than 8 percent. The 8 percent tolerance is used in California. When
packed in marked containers other than \7/10\ bushel, the pack sizes
applicable to \7/10\ bushel containers shall also apply to such
containers.

Conforming Changes to the Size Regulations

Changing the orange pack sizes and minimum and maximum diameter
size ranges required conforming changes to the size regulations for
oranges in Sec. 906.365(a)(2). The minimum size which may be packed
changed from pack size 288 to the new pack size 138, but the minimum
size permitted remained 2\6/16\ inch minimum diameter.
Changing the grapefruit pack sizes from a 1\2/5\ bushel box basis
to pack sizes based on the \7/10\ bushel carton also required
conforming changes to the grapefruit size regulations in
Sec. 906.365(a)(4). The minimum pack size changed from pack size 96 to
pack size 48, but the minimum diameter permitted to be shipped remained
3\9/16\ inches. A reference to the previous pack size 112 in
Sec. 906.365(a)(4) was changed to pack size 56. That paragraph provides
that pack size 56 grapefruit (with a minimum diameter of 3\5/16\
inches) may be packed and shipped if the fruit grades at least U.S. No.
1.

Final Regulatory Flexibility Analysis

Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA), the Agricultural Marketing Service (AMS) has considered the
economic impact of this action on small entities. Accordingly, the AMS
has prepared this final regulatory flexibility analysis.
The purpose of the RFA is to fit regulatory actions to the scale of
business subject to such actions in order that small businesses will
not be unduly or disproportionately burdened. Marketing orders issued
pursuant to the Act, and the rules issued thereunder, are unique in
that they are brought about through group action of essentially small
entities acting on their own behalf. Thus, both statutes have small
entity orientation and compatibility.
There are approximately 315 producers of oranges and grapefruit in
the production area and 16 handlers subject to regulation under the
marketing order. Small agricultural producers have been defined by the
Small Business Administration (SBA) (13 CFR 121.601) as those having
annual receipts less than $500,000 and small agricultural service firms
are defined as those whose annual receipts are less than $5,000,000.
The majority of Texas orange and grapefruit producers and handlers may
be classified as small entities.
Last year, 5 of the 16 handlers (31 percent) each shipped over
625,000 \7/10\ bushel cartons of oranges and grapefruit. Using an
average f.o.b. price of $8.00 per carton, these handlers could be
considered large businesses by the SBA, and the remaining 11 handlers
(69 percent) could be considered small businesses. Of the approximately
315 producers within the production area, few have sufficient acreage
to generate

[[Page 69378]]

sales in excess of $500,000; therefore, a majority of producers of
Texas oranges and grapefruit may be classified as small entities.
Many producers are still recovering from the 1983 and 1989
devastating freezes that virtually destroyed the Texas citrus industry.
Most trees in the production area were planted within the past ten
years and have not yet reached full maturity. As a result, yields are
still somewhat low and the profit to the producers is marginal. The
1998-99 season grapefruit and orange production levels were 59 percent
and 36 percent of the pre-1983 freeze levels.
This rule continues in effect the changes to the orange and
grapefruit pack sizes currently prescribed under the order to pack
sizes based upon the actual number of fruit packed in a \7/10\ bushel
carton. It also more closely aligns the pack sizes for Texas oranges to
those used by shippers of oranges grown in California. Conforming
changes were also made to the pack size references in the size
regulations for oranges and grapefruit so the minimum sizes permitted
to be shipped remain the same as previously specified.
The Grade and Size Subcommittee met on April 20 and 29, and May 4,
1999, and discussed changes to the order's pack requirements. At a
meeting on May 13, 1999, the Subcommittee recommended and the Committee
unanimously approved changes to the regulations. On July 1, 1999, the
Committee met again and unanimously recommended the following changes
to the orange and grapefruit pack and conforming changes to the size
regulations:
(1) Eliminate two separate pack size tables for different orange
varieties and establish one table for all orange varieties, change the
pack sizes to a \7/10\ bushel carton basis for all orange varieties
consistent with California pack sizes (the Texas pack sizes previously
were based on 1\2/5\ bushel boxes), and add a pack size 64 not
specified in the California sizes. The new pack size table includes
pack sizes for all orange varieties ranging from pack size 24 to 138,
and each pack size has minimum and maximum diameter ranges;
(2) Change the grapefruit pack sizes based on a 1\2/5\ bushel box
to pack sizes based upon the actual number of fruit packed in the \7/
10\ bushel carton; and
(3) Make conforming changes to the size regulations based on the
above recommendations.
Under the terms of the order, fresh market shipments of oranges and
grapefruit grown in the Lower Rio Grande Valley in Texas are required
to be inspected and meet grade, size, container, and pack requirements.
Section 906.40 authorizes the issuance of pack regulations. Section
906.340(a)(2) of the order's rules and regulations outlines pack
requirements for fresh shipments of Texas oranges and grapefruit. Size
requirements are specified under Sec. 906.365.

Changes to the Pack Requirements for Oranges

Section 906.340(a)(2)(i) specifies pack requirements for oranges
and previously included two tables with pack sizes and minimum and
maximum diameter size ranges for different varieties of oranges. These
requirements provided, among other things, that oranges be packed in
accordance with certain minimum and maximum diameters.
Previously, oranges were divided into two categories for the
purpose of pack regulations: (1) Navel, Valencia, and similar late-type
oranges, and (2) all other varieties of oranges. All types of oranges
were to be packed in accordance with 13 pack sizes. The minimum
diameters for Navel, Valencia, and similar late-type oranges for each
of the pack sizes were \2/16\ inch smaller than those specified for all
other oranges, while the maximum diameters for all varieties of oranges
in the 13 pack sizes were the same. The minimum diameter, however, for
all oranges was pack size 288 with a minimum diameter limit of 2\6/16\
inches.
The previous orange pack sizes and minimum and maximum diameters
are shown in the following tables:

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

Table I.--All Oranges, Except Navels, Valencias, and Similar Late-Type
Oranges
[1\2/5\ bushel box]
------------------------------------------------------------------------
Diameter in inches
Pack Size -------------------------
Minimum Maximum
------------------------------------------------------------------------
46's.......................................... 4\5/16\ 5
54's or 56's.................................. 4\2/16\ 4\12/16\
64's.......................................... 3\15/16\ 4\8/16\
70's or 72's.................................. 3\13/16\ 4\5/16\
80's.......................................... 3\10/16\ 4\2/16\
100's......................................... 3\7/16\ 3\13/16\
112's......................................... 3\5/16\ 3\11/16\
125's......................................... 3\3/16\ 3\9/16\
163's......................................... 2\15/16\ 3\5/16\
200's......................................... 2\11/16\ 3\1/16\
252's......................................... 2\7/16\ 2\12/16\
288's......................................... 2\4/16\ 2\9/16\
324's......................................... 2\3/16\ 2\8/16\
------------------------------------------------------------------------

Table II (Section 906.340 (a)(2)(i)(c))

Table II.--Navels, Valencia, and Similar Late-Type Oranges
[1\2/5\ bushel box]
------------------------------------------------------------------------
Diameter in inches
Pack Size -------------------------
Minimum Maximum
------------------------------------------------------------------------
46............................................ 4\3/16\ 5
54............................................ 4 4\12/16\
64............................................ 3\13/16\ 4\8/16\
70 or 72...................................... 3\11/16\ 4\5/16\
80............................................ 3\8/16\ 4\2/16\
100........................................... 3\5/16\ 3\13/16\
112........................................... 3\3/16\ 3\11/16\
125........................................... 3\1/16\ 3\9/16\
163........................................... 2\13/16\ 3\5/16\
200........................................... 2\9/16\ 3\1/16\
252........................................... 2\5/16\ 2\12/16\
288........................................... 2\2/16\ 2\9/16\
------------------------------------------------------------------------

All oranges had to be at least Pack Size 288, except that the minimum
diameter limit for Pack Size 288 oranges in any lot was 2\6/16\ inches.
The Committee recommended changing the orange pack sizes to the
pack sizes used by the California citrus industry. A study by the
Committee indicated that approximately 39 percent of Texas oranges are
sold in Texas, and about 36 percent in California. Almost 90 percent is
marketed west of the Mississippi River. California dominates the
western domestic orange market with fruit available on a year-round
basis. Texas, on the other hand, is a relatively small producer of
oranges with a marketing season from late September through May.
Previously, oranges from California were sized differently from oranges
available from Texas. Furthermore, as mentioned before, Texas had two
orange size tables--one for Navels, Valencia, and similar late-type
oranges, and another for all other varieties.
Since California dominates the orange market, produce buyers are
much more familiar with California orange pack sizes than pack sizes
previously used by the Texas citrus industry. Buyers' computers tended
to have California pack sizes listed, but not Texas'. This put handlers
of Texas oranges at a competitive disadvantage. Further, Texas did not
previously pack a size 138 orange. The closest Texas sizes were 126 and
144. As a result, the Texas orange industry could not supply buyers
interested in purchasing size 138.
Retailers, wholesalers, food service distributors, and brokers were
much more familiar with California orange pack sizes than Texas orange
pack sizes because California ships a much larger volume and is present
in the marketplace year-round. Having pack

[[Page 69379]]

sizes different from California's was a marketing problem that affected
all producers and handlers and caused the Texas industry to lose fresh
orange sales. The Committee believed that the pack sizes for Texas
should be similar to those used by California shippers. In addition to
the pack sizes used by the California industry, the Committee
recommended a pack size 64, presently a very popular size for the Texas
industry, ranging from a minimum diameter of 2\11/16\ inches to a
maximum of 3\10/16\ inches.
The Committee unanimously recommended orange pack sizes ranging
from pack size 24 to 138 with minimum and maximum diameters based on
the \7/10\ bushel carton, which refer to the actual number of fruit in
the carton as shown in the following table:

Oranges
[\7/10\ bushel carton]
------------------------------------------------------------------------
Diameter in Inches
Pack size/number of grapefruit -------------------------
Minimum Maximum
------------------------------------------------------------------------
24............................................ 3\12/16\ 5\1/16\
32............................................ 3\6/16\ 4\9/16\
36............................................ 3\4/16\ 4\6/16\
40............................................ 3\2/16\ 4\4/16\
48............................................ 2\15/16\ 4
56............................................ 2\13/16\ 3\13/16\
64............................................ 2\11/16\ 3\10/16\
72............................................ 2\9/16\ 3\8/16\
88............................................ 2\8/16\ 3\4/16\
113........................................... 2\7/16\ 3
138........................................... 2\6/16\ 2\12/16\
------------------------------------------------------------------------

Previously, Texas had minimum and maximum orange diameters size
ranges in inches and fractions of an inch for each pack size. The
Committee recommended changes to the minimum and maximum diameters for
the pack sizes to a \7/10\ bushel carton basis as shown in the
foregoing table.
Adopting the California orange pack sizes for all varieties of
oranges eliminated the two separate pack size tables previously in the
orange pack regulations. The separate tables for different varieties of
oranges had been established to allow for varietal size differences.
Some varieties tend to be round and others slightly oblong, which
caused problems with older mechanical sizing equipment. Present day
mechanical fruit sizing equipment, however, accurately sizes all
varieties of oranges and two separate pack size tables for different
orange varieties were no longer necessary.
For purposes of clarity, language was added under Table I
indicating that if \7/10\ bushel containers of oranges are marked, the
count of fruit in each container shall not be less than the count
marked on the container, but may exceed the count marked on the
container by not more than 8 percent. The 8 percent tolerance is used
in California. When packed in marked containers other than \7/10\
bushel, the pack sizes applicable to \7/10\ bushel containers shall
also apply to such containers.

Replace References to the 1\2/5\ Bushel Box with a \7/10\ Bushel
Carton

The previous Texas orange and grapefruit pack size regulations
referred to a 1\2/5\ bushel box. The 1\2/5\ bushel box was a carryover
from past years when fruit was packed in a wooden ``Bruce'' box, which
is twice the size of the common \7/10\ bushel carton presently used in
commercial business. The Committee recommended changing all references
to the 1\2/5\ bushel box to a \7/10\ bushel carton. References to the
1\2/5\ bushel box and associated fruit pack sizes based on that
container were confusing to the industry. All weekly Committee
utilization reports, annual reports, and other documents reference the
\7/10\ bushel carton or equivalent. With the elimination of the 1\2/5\
bushel box, the orange pack sizes are in accordance with the count in a
\7/10\ bushel carton.
The \7/10\ bushel carton and fruit count per carton is now the
accepted standard for oranges and grapefruit within the Texas industry.
Handlers currently pack as to the count of fruit in the box.
Eliminating all references to the 1\2/5\ bushel box and related pack
sizes minimizes confusion among all producers and handlers.

Changes to the Pack Requirements for Grapefruit

Section 906.340(a)(2) also provides pack requirements for
grapefruit based upon the United States Standards for Grades of
Grapefruit (Texas and States other than Florida, California, and
Arizona), with some exceptions. Grapefruit was previously required to
be packed within the diameter limits specified for the various pack
sizes defined in 7 CFR 51.630(c) of the United States Standards for
Grades of Grapefruit (Texas and States other than Florida, California,
and Arizona), hereinafter referred to as the ``grapefruit standards'',
based on a 1\2/5\ bushel box. The standard pack and standard sizing
requirements, and packing tolerances remain unchanged.
The grapefruit standards define eight pack sizes. The smallest is
size \125/126\, which ranges from a minimum of 3 inches to a maximum of
3\8/16\ inches in diameter. The largest is size 46 which ranges from
4\5/16\ to 5 inches in diameter. The Texas grapefruit pack regulations
also included a size 36 grapefruit, which ranged from 4\5/16\ to 5\9/
16\ inches in diameter. The minimum diameters for pack sizes 96 and 112
were modified from 3\6/16\ inches and 3\2/16\ inches as specified in
the grapefruit standards to 3\9/16\ and 3\5/16\ inches, respectively,
and these exceptions continue in effect.
The Committee recommended revising the grapefruit pack sizes based
on a \7/10\ bushel carton, as shown in the following table, rather than
the 1\2/5\ bushel box, because the latter basis was obsolete and
confusing. The Texas citrus industry for many years used the \7/10\
bushel carton as the standard. Previously, any reference to a 1\2/5\
bushel of fruit had to be converted to \7/10\ bushel equivalents. With
the elimination of the 1\2/5\ bushel box, grapefruit pack sizes
reference the number of grapefruit that will pack in a \7/10\ bushel
carton.

Grapefruit
[\7/10\ bushel carton]
------------------------------------------------------------------------
Diameter in inches
Pack size/number of grapefruit -------------------------
Minimum Maximum
------------------------------------------------------------------------
18 (36)....................................... 4\15/16\ 5\9/16\
23 (46)....................................... 4\5/16\ 5
27 (54/56).................................... 4\2/16\ 4\12/16\
32 (64)....................................... 3\15/16\ 4\8/16\
36 (70/72).................................... 3\13/16\ 4\5/16\
40 (80)....................................... 3\10/16\ 4\2/16\
48 (96)....................................... 3\9/16\ 3\14/16\
56 (112/113).................................. 3\5/16\ 3\10/16\
------------------------------------------------------------------------
(Numbers in parentheses represent previous pack sizes.) Minimum and
maximum diameter size ranges for the new pack sizes remain the same as
previously specified.

For purposes of clarity, language was added after Table II
specifying that if \7/10\ bushel containers of grapefruit are marked,
the count of fruit in the container shall not be less than the count
marked on the container, but may exceed the count marked on the
container by not more than 8 percent. The 8 percent tolerance is used
in California. When packed in marked containers other than \7/10\
bushel, the pack sizes applicable to \7/10\ bushel containers shall
also apply to such containers.

Conforming Changes to the Size Regulations

Changing the orange pack sizes and minimum and maximum diameter
size ranges required conforming changes to the size regulations for
oranges in Sec. 906.365(a)(2). The minimum size which may be packed
changed from pack size 288 to the new pack size 138,

[[Page 69380]]

but the minimum diameter permitted to be shipped remained 2\6/16\
inches.
Changing the grapefruit pack sizes from a 1\2/5\ bushel box basis
to pack sizes based on the \7/10\ bushel carton also required
conforming changes to the grapefruit size regulations in
Sec. 906.365(a)(4). The minimum pack size changed from pack size 96 to
pack size 48, but the minimum diameter permitted to be shipped remained
3\9/16\ inches. A reference to the previous pack size 112 in
Sec. 906.365(a)(4) was changed to pack size 56. That paragraph provides
that pack size 56 grapefruit (with a minimum diameter of 3\5/16\
inches) may be packed and shipped if the fruit grades at least U.S. No.
1.
The Committee concluded that leaving the pack sizes as they
previously were could cause the Texas citrus industry to lose fresh
orange sales. The pack size changes are expected to result in increased
sales, but the amount of increase cannot be determined precisely.
Eliminating the references to the 1\2/5\ bushel box in the
regulations does not have any effect upon producer returns or sales. It
simply eliminated an antiquated unit of measure from the regulations,
prevents confusion, and eliminates the need for converting 1\2/5\
bushel box references to the standard \7/10\ bushel carton.
Changing the grapefruit pack sizes consistent with the changes
being recommended in the orange pack sizes prevents confusion in the
industry. The industry, both sellers and buyers, currently refer to the
size of grapefruit (and oranges) by the number of fruit packed in a \7/
10\ bushel carton. The changes made by this action reflect this
industry practice.
The opportunities and benefits of these changes are expected to be
equally available to all Texas citrus producers and handlers regardless
of their size of operation. The changes offer benefits to the entire
Texas citrus industry. The changes enable handlers to compete more
effectively in the marketplace. They also contribute to the industry's
long-term objective to market as much citrus as possible. These
regulation changes are expected to lead to market expansion, which
benefits producers, handlers, buyers, and consumers of Texas citrus.
Accordingly, in assessing alternatives to the changes provided in the
interim final rule, this final action continues to provide the most
beneficial results.
This rule will not impose any additional reporting or recordkeeping
requirements on either small or large orange and grapefruit handlers.
As with all Federal marketing order programs, reports and forms are
periodically reviewed to reduce information requirements and
duplication by industry and public sectors. The Department has not
identified any relevant Federal rules that duplicate, overlap or
conflict with this rule.
Further, the Committee's meetings were widely publicized throughout
the Texas orange and grapefruit industry and all interested persons
were invited to attend the meetings and participate in Committee
deliberations. Like all Committee meetings, the May 13, 1999, and July
1, 1999, meetings were public meetings and all entities, both large and
small, were able to express their views on this issue.
Also, the Committee has a number of appointed subcommittees to
review certain issues and make recommendations to the Committee. The
Committee's Grade and Size Subcommittee met on April 20, April 29, and
May 4, 1999, and discussed this issue in detail. Those meetings were
also public meetings and both large and small entities were able to
participate and express their views.
An interim final rule concerning this action was published in the
Federal Register on August 31, 1999. The Committee's staff mailed
copies of the rule to all Committee members and orange and grapefruit
handlers and producers. In addition, the Office of the Federal Register
made the rule available through the Internet. That rule provided for a
60-day comment period which ended November 1, 1999. No comments were
received.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at the
following web site: http://www.ams.usda.gov/fv/moab.html. Any questions
about the compliance guide should be sent to Jay Guerber at the
previously mentioned address in the FOR FURTHER INFORMATION CONTACT
section.
After consideration of all relevant material presented, including
the Committee's recommendation, and other information, it is found that
finalizing the interim final rule, without change, as published in the
Federal Register (64 FR 47349, August 31, 1999) will tend to effectuate
the declared policy of the Act.

List of Subjects in 7 CFR Part 906

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

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

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

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

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A99-32229. Public record. Not legal advice.