Nectarines and Peaches Grown in California; Revision of Handling

From: GPO_OnLine_USDA
Date: 2003/04/09


[Federal Register: April 9, 2003 (Volume 68, Number 68)]
[Rules and Regulations]
[Page 17257-17267]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09ap03-1]

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[[Page 17257]]

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 916 and 917

[Docket No. FV03-916-2 IFR]

Nectarines and Peaches Grown in California; Revision of Handling
Requirements for Fresh Nectarines and Peaches

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This rule revises the handling requirements for California
nectarines and peaches by modifying the grade, size, maturity, and
container requirements for fresh shipments of these fruits, beginning
with 2003 season shipments. This rule also continues a modification of
the requirements for placement of Federal-State Inspection Service lot
stamps for the 2003 season, establishes a net weight for a style of
containers and exempts those containers from the well-filled
requirement, and revises the weight-count standards for Peento type
peaches. The marketing orders regulate the handling of nectarines and
peaches grown in California and are administered locally by the
Nectarine Administrative and Peach Commodity Committees (committees).
This rule would enable handlers to continue shipping fresh nectarines
and peaches meeting consumer needs in the interests of producers,
handlers, and consumers of these fruits.

DATES: Effective April 10, 2003. Comments received by June 9, 2003,
will be considered prior to issuance of any final rule.

ADDRESSES: Interested persons are invited to submit written comments
concerning this rule. Comments must be sent to the Docket Clerk, Fruit
and Vegetable Programs, AMS, USDA, 1400 Independence Avenue, SW., STOP
0237, Washington, DC 20250-0237; Fax: (202) 720-8938, or e-mail:
moab.docketclerk@usda.gov. 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 at the Office
of the Docket Clerk during regular business hours, or can be viewed at:
http://www.ams.usda.gov/fv/moab.html.

FOR FURTHER INFORMATION CONTACT: Terry Vawter, Marketing Specialist,
California Marketing Field Office, Marketing Order Administration
Branch, Fruit and Vegetable Programs, AMS, USDA, 2202 Monterey Street,
suite 102B, Fresno, California, 93721; telephone (559) 487-5901, Fax:
(559) 487-5906; or George Kelhart, Technical Advisor, Marketing Order
Administration Branch, Fruit and Vegetable Programs, AMS, USDA, 1400
Independence Avenue, SW., STOP 0237, Washington, DC 20250-0237;
telephone: (202) 720-2491; Fax: (202) 720-8938.
    Small businesses may request information on complying with this
regulation by contacting Jay Guerber, Marketing Order Administration
Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 Independence
Avenue, SW., STOP 0237, Washington, DC 20250-0237; telephone: (202)
720-2491, Fax: (202) 720-8938, or e-mail: Jay.Guerber@usda.gov.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement Nos. 124 and 85, and Marketing Order Nos. 916 and 917 (7 CFR
parts 916 and 917) regulating the handling of nectarines and peaches
grown in California, respectively, hereinafter referred to as the
``orders.'' The orders 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 (USDA) 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 USDA 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, USDA 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 USDA's ruling on the petition,
provided an action is filed not later than 20 days after the date of
the entry of the ruling.
    Under the orders, lot stamping, grade, size, maturity, container,
container marking, and pack requirements are established for fresh
shipments of California nectarines and peaches. Such requirements are
in effect on a continuing basis. The Nectarine Administrative Committee
(NAC) and the Peach Commodity Committee (PCC), which are responsible
for local administration of the orders, met on December 3, 2002, and
unanimously recommended that these handling requirements be revised for
the 2003 season, which begins about the first or second week of April.
The changes: (1) Continue the lot stamping requirements which have been
in effect since the 2000 season; (2) authorize shipments of ``CA
Utility'' quality fruit to continue during the 2003 season; (3) revise
weight-count standards for the Peento type peaches; (4) establish a net
weight for all five-down containers and exempt those containers from
the well-filled requirement; and (5) revise varietal maturity, quality,
and size requirements to reflect changes in growing and marketing
practices.
    The committees meet prior to and during each season to review the
rules and regulations effective on a continuing basis for California
nectarines and peaches under the orders. Committee meetings are open to
the public and interested persons are encouraged to express their views
at these meetings. The committees held

[[Page 17258]]

such meetings on December 3, 2002. USDA reviews committee
recommendations and information, as well as information from other
sources, and determines whether modification, suspension, or
termination of the rules and regulations would tend to effectuate the
declared policy of the Act.
    No official crop estimate was available at the time of the
committees' meetings because the nectarine and peach trees were
dormant. The committees will recommend a crop estimate at their
meetings in early spring. However, preliminary estimates indicate that
the 2003 crop will be similar in size and characteristics to the 2002
crop, which totaled 23,230,000 containers of nectarines and 22,124,000
containers of peaches.

Lot Stamping Requirements

    Sections 916.55 and 917.45 of the orders require inspection and
certification of nectarines and peaches, respectively, handled by
handlers. Sections 916.115 and 917.150 of the nectarine and peach
orders' rules and regulations, respectively, require that all exposed
or outside containers of nectarines and peaches, and at least 75
percent of the total containers on a pallet, be stamped with the
Federal-State Inspection Service (inspection service) lot stamp number
after inspection and before shipment to show that the fruit has been
inspected. These requirements apply except for containers that are
loaded directly onto railway cars, exempted, or mailed directly to
consumers in consumer packages.
    Lot stamp numbers are assigned to each handler by the inspection
service, and are used to identify the handler and the date on which the
container was packed. The lot stamp number is also used by the
inspection service to identify and locate the inspector's corresponding
working papers or field notes. Working papers are the documents each
inspector completes while performing an inspection on a lot of
nectarines or peaches. Information contained in the working papers
supports the grade levels certified to by the inspector at the time of
the inspection.
    The lot stamp number has value for the industries, as well. The
committees utilize the lot stamp number and date codes to trace fruit
in the container back to the orchard from which it was harvested. This
information is essential in providing quick information for a crisis
management program instituted by the industries. Without the lot stamp
information on each container, the ``trace back'' effort, as it is
called, would be jeopardized.
    Over the last few years, several new containers have been
introduced for use by nectarine and peach handlers. These containers
are returnable plastic containers (RPCs). Use of RPCs may represent
substantial savings to retailers for storage and disposal, as well as
for handlers who do not have to pay for traditional, single-use,
containers. Fruit is packed in the containers by the handler, delivered
to the retailer, emptied, and returned to a central clearinghouse for
cleaning and redistribution to the handler. However, because these
containers are designed for reuse, RPCs do not support markings that
are permanently affixed to the container. All markings must be printed
on cards that slip into tabs on the front or sides of the containers.
The cards are easily inserted and removed, and further contribute to
the efficient reuse of RPCs.
    The cards are a continuing concern for the inspection service and
the industries because of their unique portability. There is some
concern that the cards on pallets of inspected containers could easily
be moved to pallets of uninspected containers, thus permitting a
handler to avoid inspection on a lot or lots of nectarines or peaches.
This would also jeopardize the use of the lot stamp numbers for the
industries' ``trace back'' program.
    To address this concern since the 2000 season, the committees have
annually recommended that pallets of inspected fruit in RPCs be
identified with a USDA-approved pallet tag containing the lot stamp
number, in addition to the lot stamp number printed on the card on the
container. In this way, noted the committees, an audit trail would be
created, confirming that the lot stamp number on each container on the
pallet corresponds to the lot stamp number on the pallet tag.
    The committees and the inspection service presented their concerns
to the manufacturers of these types of containers prior to the 2000
season. At that time, one manufacturer indicated a willingness to
address the problem by offering an area on the principal display panel
where the container markings would adhere to the container. Another
possible improvement discussed was for an adhesive for the current
style of containers which would securely hold the cards with the lot
stamp numbers, yet would be easy for the clearinghouse to remove when
the containers are washed. However, the changes offered by the
manufacturers were not available for use in the previous three seasons,
and there is no assurance that they will be available for the 2003
season.
    In a meeting of the Stone Fruit Grade and Size Subcommittee on
November 6, 2002, it was determined that given the different styles and
configurations of RPCs available, having a standardized display panel
or a satisfactory adhesive for placement of the cards may not be
realistic and the industry needed to continue the lot stamping
requirements in place since the 2000 season.
    For those reasons, the subcommittee unanimously recommended to the
committees that the regulation in effect since the 2000 season
requiring lot stamp numbers on USDA-approved pallet tags, as well as on
individual containers on a pallet, be again required for the 2003
season. The committees, in turn, recommended unanimously that such
requirement be extended for the 2003 season, as well.
    Thus, Sec. Sec. 916.115 and 917.150 will be amended to require the
lot stamp number to be printed on a USDA-approved pallet tag, in
addition to the requirement that the lot stamp number be applied to
cards on all exposed or outside containers, and not less than 75
percent of the total containers on a pallet, during the 2003 season.

Container and Pack Requirements

    Sections 916.52 and 917.41 of the orders authorize establishment of
container, pack, and marking requirements for shipments of nectarines
and peaches, respectively. Under Sec. Sec. 916.350 and 917.442 of the
orders, the specifications of container markings, net weights, well-
filled requirements, weight-count standards for various sizes of
nectarines and peaches, and lists of standard containers are provided.
    The committees unanimously recommended that a uniform net weight be
established for all ``five down'' boxes (commonly referred to as
``Euro'' boxes), and that all such containers be exempted from the
well-filled requirement. Currently, the net weight requirement of 31
pounds for ``five down'' boxes and the exemption from the well-filled
requirement applies only to RPCs. However, as a handler noted at one
meeting, the industry uses boxes of the same ``footprint'' (length and
width dimensions) as the RPCs that are made of more traditional
materials, such as corrugated cardboard. ``Five down'' boxes are
containers that lay in a pattern of five containers per layer on each
pallet. In other words, each layer of boxes on a pallet contains only
five Euro boxes. Other container sizes and footprints may result in
nine boxes per layer, etc.
    Since applying the well-filled requirements to any five down Euro
box

[[Page 17259]]

might result in bruising or other damage to fruit packed in it, the
Stone Fruit Grade and Size Subcommittee voted unanimously to extend the
current requirements applicable to RPCs with regard to net weight and
well-filled requirements to all five down Euro containers. This would
ensure that all five down Euro containers have a uniform net weight and
ensure that the fruit in those containers is handled in such a way to
minimize damage.
    At the December 3, 2002, meeting, the NAC and PCC also unanimously
recommended that all five down Euro boxes have an established net
weight of 31 pounds, which is to be printed on the end of the
container, and that those containers, like the RPCS, be exempt from the
well-filled requirement.
    Nectarines: For the reasons stated above, paragraphs (a)(1) and
(a)(8) of Sec. 916.350 are revised to refer to all five down Euro
containers. Such changes will ensure that all five down Euro containers
of nectarines are a net weight of 31 pounds and are exempt from the
well-filled requirement. The container markings shall be placed on one
outside end of the container in plain sight and in plain letters.
    Peaches: For the reasons stated above, paragraphs (a)(1) and (a)(9)
of Sec. 917.442 are revised to refer to all five down Euro containers.
Such changes will ensure that all five down Euro containers of peaches
are a net weight of 31 pounds and are exempt from the well-filled
requirement. The markings shall be placed on one outside end of the
container in plain sight and in plain letters.

Weight-Count Standards for Peaches

    Under the requirements of Sec. 917.41 of the order, containers of
peaches are required to meet weight-count standards for a maximum
number of peaches in a 16-pound sample when such peaches, which may be
packed in tray-packed containers, are converted to volume-filled
containers. Under Sec. 917.442 of the order's rules and regulations,
weight-count standards are established for all varieties of peaches as
Tables 1, 2, and 3 of paragraph (a)(5)(iv).
    According to the PCC, the Peento type peaches have traditionally
been packed in trays because they have been marketed as a premium
variety, which justified the added packing costs.
    However, as the volume has increased, the value of this peach has
diminished in the marketplace, and some handlers converted their tray-
packed containers of Peento types to volume-filled containers. Prior to
the 2002 season, weight-count standards established for peaches and
nectarines were developed for round fruit. Peento type peaches are
shaped like donuts, and those weight-count standards were
inappropriate. In an effort to standardize the conversion from tray-
packing to volume-filling for Peento type peaches, the committee staff
conducted weigh-count surveys during the 2001 season to determine the
most optimum weight-counts for the varieties at varying fruit sizes.
    As a result, a new weight-count table applicable to only the Peento
type peaches was added for the 2002 season. However, during the 2002
season, the committee staff continued to conduct further weight-count
surveys to ensure that the Peento type peaches packed in volume-filled
containers meet the weight-count standards established for tray-packed
fruit. During those studies, the committee staff learned that very
large Peento type peaches that were not previously converted from tray-
packs to volume-filled containers were being packed in volume-filled
containers and did not meet the weight-count standards.
    For this reason, Table 3 of paragraph (a)(5)(iv) in Sec. 917.442
is being revised to include weight-count standards for two of the
larger peach sizes, sizes 32 and 30. Table 3 will also be corrected
with regard to the maximum number of fruit in a 16-pound sample for
sizes 54 and 50. Also, the maximum number of fruit in a 16-pound sample
of size 54 Peento type peaches currently is listed as 77 peaches, and
the maximum number of size 50 Peento type peaches is listed as 80
peaches. The maximum numbers of fruit for these sizes were
inadvertently reversed, and will be corrected to indicate that the
maximum number of fruit in a 16-pound sample of size 54 Peento type
peaches is 80, and the maximum number of fruit in a 16-pound sample of
size 50 Peento type peaches is 77.

Grade and Quality Requirements

    Sections 916.52 and 917.41 of the orders authorize the
establishment of grade and quality requirements for nectarines and
peaches, respectively. Prior to the 1996 season, Sec. 916.356 required
nectarines to meet a modified U.S. No. 1 grade. Specifically,
nectarines were required to meet U.S. No. 1 grade requirements, except
for a slightly tighter requirement for scarring and a more liberal
allowance for misshapen fruit. Prior to the 1996 season, Sec. 917.459
required peaches to meet the requirements of a U.S. No. 1 grade, except
for a more liberal allowance for open sutures that were not ``serious
damage.''
    This rule revises Sec. Sec. 916.350, 916.356, 917.442, and 917.459
to permit shipments of nectarines and peaches meeting ``CA Utility''
quality requirements during the 2003 season. (``CA Utility'' fruit is
lower in quality than that meeting the modified U.S. No. 1 grade
requirements.) Shipments of nectarines and peaches meeting ``CA
Utility'' quality requirements have been permitted each season since
1996.
    Studies conducted by the NAC and PCC in 1996 indicated that some
consumers, retailers, and foreign importers found the lower-quality
fruit acceptable in some markets. When shipments of ``CA Utility''
nectarines were first permitted in 1996, they represented 1.1 percent
of all nectarine shipments, or approximately 210,000 containers.
Shipments of ``CA Utility'' nectarines reached a high of 5.3 percent
(1,239,000 containers) during the 2002 season, but usually represent
approximately 4 percent of total nectarine shipments. Shipments of ``CA
Utility'' peaches totaled 1.9 percent of all peach shipments, or
approximately 366,000 containers, during the 1996 season. Shipments of
``CA Utility'' peaches reached a high of 5.6 percent of all peach
shipments (1,231,000 containers) during the 2002 season, but usually
represent approximately 4 percent of total peach shipments.
    Handlers have also commented that the availability of the ``CA
Utility'' quality option lends flexibility to their packing operations.
They have noted that they now have the opportunity to remove marginal
nectarines and peaches from their U.S. No. 1 containers and place this
fruit in containers of ``CA Utility.'' This flexibility, the handlers
note, results in better quality U.S. No. 1 packs without sacrificing
fruit.
    The Stone Fruit Grade and Size Subcommittee met on November 6,
2002, and did not make a recommendation to the NAC and PCC to continue
shipments of ``CA Utility'' quality nectarines and peaches. Some
subcommittee members raised concerns about ``CA Utility'' quality
fruit, including concerns that growers'' returns on ``CA Utility''
quality fruit are lower. The issue of the authorized tolerance of 40
percent U.S. No. 1 fruit in each container of ``CA Utility'' quality
was raised, and there was some discussion that the tolerance should be
reduced so that less U.S. No. 1 fruit would be in a box of ``CA
Utility'' quality fruit. However, ultimately no decisions were made by
the subcommittee as the result of these discussions.
    Subsequently, however, the NAC and PCC voted unanimously at their

[[Page 17260]]

December 3, 2002, meetings to authorize continued shipments of ``CA
Utility'' quality fruit during the 2003 season.
    Accordingly, based upon the recommendations, paragraph (d) of
Sec. Sec. 916.350 and 917.442, and paragraph (a)(1) of Sec. Sec.
916.356 and 917.459 are revised to permit shipments of nectarines and
peaches meeting ``CA Utility'' quality requirements during the 2003
season, on the same basis as shipments since the 2000 season.

Maturity Requirements

    In Sec. Sec. 916.52 and 917.41, authority is provided to establish
maturity requirements for nectarines and peaches, respectively. The
minimum maturity level currently specified for nectarines and peaches
is ``mature'' as defined in the standards. For most varieties, ``well-
matured'' determinations for nectarines and peaches are made using
maturity guides (e.g., color chips). These maturity guides are reviewed
each year by the Shipping Point Inspection Service (SPI) to determine
whether they need to be changed, based upon the most-recent information
available on the individual characteristics of each nectarine and peach
variety.
    These maturity guides established under the handling regulations of
the California tree fruit marketing orders have been codified in the
Code of Federal Regulations as Table 1 in Sec. Sec. 916.356 and
917.459, for nectarines and peaches, respectively.
    The requirements in the 2003 handling regulations are the same as
those that appeared in the 2002 handling regulations with a few
exceptions. Those exceptions are explained in this rule.
    Nectarines: Requirements for ``well-matured'' nectarines are
specified in Sec. 916.356 of the order's rules and regulations. This
rule revises Table 1 of paragraph (a)(1)(iv) of Sec. 916.356 to add
maturity guides for four varieties of nectarines. Specifically, SPI
recommended adding maturity guides for the Mango variety to be
regulated at the B maturity guide, for the Honey Royale and the Sunny
Red varieties at the J maturity guide, and the Prince Jim variety to be
regulated at the L maturity guide.
    The NAC recommended these maturity guide requirements based on
SPI's continuing review of individual maturity characteristics and
identification of the appropriate maturity guide corresponding to the
``well-matured'' level of maturity for nectarine varieties in
production.
    Peaches: Requirements for ``well-matured'' peaches are specified in
Sec. 917.459 of the order's rules and regulations. This rule revises
Table 1 of paragraph (a)(1)(iv) of Sec. 917.459 to add maturity guides
for six peach varieties. Specifically, SPI recommended adding maturity
guides for the September Flame variety to be regulated at the I
maturity guide; Autumn Red, Magenta Queen, Pretty Lady, and the Prima
Gattie 10 varieties to be regulated at the J maturity guide; and the
Golden Princess variety to be regulated at the L maturity guide.
    In addition, SPI requested that the language in paragraph
(a)(1)(vi) of Sec. 917.459 be revised with regard to the Joanna Sweet
variety. Currently, the Joanna Sweet variety is required to have a one
hundred percent surface color requirement for meeting the assigned
color chip. SPI requested that the language be changed to reflect that
any of the fruit surface that is not red shall meet the color guide
established for the variety, including any color found in the stem
cavity. This recommendation is based upon SPI's experience with the
maturity characteristics of this variety.
    Thus, paragraph (a)(1)(iv) of Sec. 917.459 will be revised to
reflect this recommendation.
    The PCC recommended these maturity guide requirements based on
SPI's continuing review of individual maturity characteristics and
identification of the appropriate maturity guide corresponding to the
``well-matured'' level of maturity for peach varieties in production.
    Size Requirements: Both orders provide (in Sec. Sec. 916.52 and
917.41) authority to establish size requirements. Size regulations
encourage producers to leave fruit on the tree longer, which improves
both size and maturity of the fruit. Acceptable fruit size provides
greater consumer satisfaction and promotes repeat purchases; and,
therefore, increases returns to producers and handlers. In addition,
increased fruit size results in increased numbers of packed containers
of nectarines and peaches per acre, also a benefit to producers and
handlers.
    Varieties recommended for specific size regulations have been
reviewed and such recommendations are based on the specific
characteristics of each variety. The NAC and PCC conduct studies each
season on the range of sizes attained by the regulated varieties and
those varieties with the potential to become regulated, and determine
whether revisions and additions to the size requirements are
appropriate.
    Nectarines: Section 916.356 of the order's rules and regulations
specifies minimum size requirements for fresh nectarines in paragraphs
(a)(2) through (a)(9). This rule revises Sec. 916.356 to establish
variety-specific minimum size requirements for four varieties of
nectarines that were produced in commercially-significant quantities of
more than 10,000 containers for the first time during the 2002 season.
This rule also removes the variety-specific minimum size requirements
for 11 varieties of nectarines whose shipments fell below 5,000
containers during the 2002 season.
    For example, one of the varieties recommended for addition to the
variety-specific minimum size requirements is the Red Roy variety of
nectarines, recommended for regulation at a minimum size 88. Studies of
the size ranges attained by the Red Roy variety revealed that 100
percent of the containers met the minimum size of 88 during the 2002
season. Sizes ranged from size 40 to size 88, with 1.5 percent of the
fruit in the 40 sizes, 22.2 percent of the packages in the 50 sizes,
55.8 percent in the 60 sizes, 14.6 percent in the 70 sizes, 5.4 in the
80 sizes, with .5 percent in the size 88.
    A review of other varieties with the same harvesting period
indicated that the Red Roy variety was also comparable to those
varieties in its size ranges for that time period. Discussions with
handlers known to handle the variety confirm this information regarding
minimum size and harvesting period, as well. Thus, the recommendation
to place the Red Roy variety in the variety-specific minimum size
regulation at a minimum size 88 is appropriate. This recommendation
results from size studies conducted over a two-year period.
    Historical data such as this provides the NAC with the information
necessary to recommend the appropriate sizes at which to regulate
various nectarine varieties. In addition, producers and handlers of the
varieties affected are personally invited to comment when such size
recommendations are deliberated. Producer and handler comments are also
considered at both NAC and subcommittee meetings when the staff
receives such comments, either in writing or verbally.
    For reasons similar to those discussed in the preceding paragraph,
the introductory text of paragraph (a)(4) of Sec. 916.356 is revised
to include the Red Roy variety; and the introductory text of paragraph
(a)(6) of Sec. 916.356 is revised to include the Candy Gold, Candy
Sweet, and Honey Royale nectarine varieties.
    This rule also revises the introductory text of paragraphs (a)(3),
(a)(4), and (a)(6) of Sec. 916.356 to remove 11 varieties from the
variety-specific minimum size

[[Page 17261]]

requirements specified in these paragraphs because less than 5,000
containers of each of these varieties were produced during the 2002
season. Specifically, the introductory text of paragraph (a)(3) of
Sec. 916.356 is revised to remove the Johnny's Delight and May Jim
nectarine varieties; the introductory text of paragraph (a)(4) of Sec.
916.356 is revised to remove the Scarlet Jewels and Star Brite
nectarine variety; and the introductory text of paragraph (a)(6) of
Sec. 916.356 is revised to remove the Arctic Gold, Kay Diamond, Prima
Diamond XVI, Spring Diamond, Spring Red, Summer Beaut, and Sunecteight
(Super Star) nectarine varieties.
    Nectarine varieties removed from the nectarine variety-specific
minimum size requirements become subject to the non-listed variety size
requirements specified in paragraphs (a)(7), (a)(8), and (a)(9) of
Sec. 916.356.
    Peaches: Section 917.459 of the order's rules and regulations
specifies minimum size requirements for fresh peaches in paragraphs
(a)(2) through (a)(6), and paragraphs (b) and (c). This rule revises
Sec. 917.459 to establish variety-specific minimum size requirements
for 12 peach varieties that were produced in commercially-significant
quantities of more than 10,000 containers for the first time during the
2002 season. This rule also removes the variety-specific minimum size
requirements for 10 varieties of peaches whose shipments fell below
5,000 containers during the 2002 season.
    For example, one of the varieties recommended for addition to the
variety-specific minimum size requirements is the Springtreat (60EF32)
variety of peaches, which was recommended for regulation at a minimum
size 80. Studies of the size ranges attained by the Springtreat
(60EF32) variety revealed that 100 percent of the containers met the
minimum size of 80 during the 2002 season. The sizes ranged from size
50 to size 80, with 8.2 percent of the containers meeting the size 50,
41.2 meeting the size 60, 37.6 percent meeting the size 70, and 12.9
percent meeting the size 80.
    A review of other varieties with the same harvesting period
indicated that the Springtreat (60EF32) variety was also comparable to
those varieties in its size ranges for that time period. Discussions
with handlers known to pack the variety confirm this information
regarding minimum size and harvesting period, as well. Thus, the
recommendation to place the Springtreat (60EF32) variety in the
variety-specific minimum size regulation at a minimum size 80 is
appropriate. This recommendation, as with all other size
recommendations for peaches, results from size studies conducted over a
three-year period.
    Historical data such as this provides the PCC with the information
necessary to recommend the appropriate sizes at which to regulate
various peach varieties. In addition, producers and handlers of the
varieties affected are personally invited to comment when such size
recommendations are deliberated. Producer and handler comments are also
considered at both PCC and subcommittee meetings when the staff
receives such comments, either in writing or verbally.
    For reasons similar to those discussed in the preceding paragraph,
the introductory text of paragraph (a)(5) of Sec. 917.459 is revised
to include the Happy Dream, Magenta Queen, Springtreat (60EF32), and
Spring Flame 21 peach varieties; and the introductory text of paragraph
(a)(6) of Sec. 917.459 is revised to include the August Flame, Henry
II, June Flame, Pink Giant, Prima Peach XV, Red Giant, Snow Beauty, and
Snow Princess peach varieties.
    This rule also revises the introductory text of paragraph (a)(3) of
Sec. 917.459 to remove the Topcrest peach variety; revises the
introductory text of paragraph (a)(5) of Sec. 917.459 to remove the
White Dream peach variety; and revises the introductory paragraph
(a)(6) of Sec. 917.459 to remove the Cal Red, Champagne, Flaming
Dragon, Garnet Jewel, Lacey, Madonna Sun, Morning Lord, and Red Sun
peach varieties from the variety-specific minimum size requirements
specified in the section because less than 5,000 containers of each of
these varieties was produced during the 2002 season.
    Peach varieties removed from the peach variety-specific minimum
size requirements become subject to the non-listed variety size
requirements specified in paragraphs (b) and (c) of Sec. 917.459.
    The NAC and PCC recommended these changes in the minimum size
requirements based on a continuing review of the sizing and maturity
relationships for these nectarine and peach varieties, and the consumer
acceptance levels for various fruit sizes. This rule is designed to
establish minimum size requirements for fresh nectarines and peaches
consistent with expected crop and market conditions.
    This rule reflects the committees' and USDA's appraisal of the need
to revise the handling requirements for California nectarines and
peaches, as specified. USDA believes that this rule will have a
beneficial impact on producers, handlers, and consumers of fresh
California nectarines and peaches.
    This rule establishes handling requirements for fresh California
nectarines and peaches consistent with expected crop and market
conditions, and will help ensure that all shipments of these fruits
made each season will meet acceptable handling requirements established
under each of these orders. This rule will also help the California
nectarine and peach industries to provide fruit desired by consumers.
This rule is designed to establish and maintain orderly marketing
conditions for these fruit in the interests of producers, handlers, and
consumers.

Initial 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, 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 300 California nectarine and peach handlers
subject to regulation under the orders covering nectarines and peaches
grown in California, and about 1,800 producers of these fruits in
California. Small agricultural service firms, which include handlers,
are defined by the Small Business Administration (13 CFR 121.201) as
those whose annual receipts are less than $5,000,000. Small
agricultural producers are defined by the Small Business Administration
as those having annual receipts of less than $750,000. A majority of
these handlers and producers may be classified as small entities.
    The committees' staff has estimated that there are less than 20
handlers in the industry who could be defined as other than small
entities. For the 2002 season, the committees' staff estimated that the
average handler price received was $9.00 per container or container
equivalent of nectarines or peaches. A handler would have to ship at
least 556,000 containers to have annual receipts of $5,000,000. Given
data on shipments maintained by the committees' staff and the average
handler price received during the 2002

[[Page 17262]]

season, the committees' staff estimates that small handlers represent
approximately 94 percent of all the handlers within the industry.
    The committees' staff has also estimated that less than 20 percent
of the producers in the industry could be defined as other than small
entities. For the 2002 season, the committees' estimated the average
producer price received was $4.00 per container or container equivalent
for nectarines and peaches. A producer would have to produce at least
187,500 containers of nectarines and peaches to have annual receipts of
$750,000. Given data maintained by the committees' staff and the
average producer price received during the 2002 season, the committees'
staff estimates that small producers represent more than 80 percent of
the producers within the industry. With an average producer price of
$4.00 per container or container equivalent, and a combined packout of
nectarines and peaches of 45,354,000 containers, the value of the 2002
packout level is estimated to be $181,416,000. Dividing this total
estimated grower revenue figure by the estimated number of producers
(1,800) yields an estimate of average revenue per producer of about
$101,000 from the sales of peaches and nectarines.
    Under Sec. Sec. 916.52 and 917.41 of the orders, grade, size,
maturity, container, container marking, and pack requirements are
established for fresh shipments of California nectarines and peaches,
respectively. Such requirements are in effect on a continuing basis.
The NAC and PCC met on December 3, 2002, and unanimously recommended
that these handling requirements be revised for the 2003 season. These
recommendations had been presented to the committees by various
subcommittees, each charged with review and discussion of the changes.
The changes: (1) Continue the lot stamping requirements for reusable
plastic containers that have been in effect since the 2000 season; (2)
authorize shipments of ``CA Utility'' quality fruit to continue during
the 2003 season; (3) revise weight-count standards for the Peento type
peaches; (4) establish a net weight for all five-down containers and
exempt those containers from the well-filled requirement; and (5)
revise varietal maturity, quality, and size requirements to reflect
changes in growing and marketing practices.
    This rule authorizes continuation of the lot stamping requirements
for returnable plastic containers under the marketing orders' rules and
regulations that have been in effect for such containers since the 2000
season for nectarine and peach shipments. The modified requirements of
Sec. Sec. 916.115 and 917.150 mandated that the lot stamp numbers be
printed on a USDA-approved pallet tag, in addition to the requirement
that the lot stamp number be applied to cards on all exposed or outside
containers, and not less than 75 percent of the total containers on a
pallet. Continuation of such requirements for the 2003 season would
help the inspection service safeguard the identity of inspected and
certified containers of nectarines and peaches, and would help the
industry by keeping in place the information necessary to facilitate
their ``trace-back'' program.
    The Stone Fruit Grade and Size Subcommittee met on November 6,
2002, and considered possible alternatives to this action. Other
alternatives were rejected because it was determined that given the
different styles and configurations of RPCs available, having a
satisfactory adhesive for placement of the cards may not be realistic,
at least for the time being, given the reluctance of box manufacturers
to respond to the industry's requests.
    For those reasons, the subcommittee and the committees unanimously
recommended extending the requirement for the lot stamp number to be
printed on the cards on each container and for each pallet to be marked
with a USDA-approved pallet tag, also containing the lot stamp number.
Such safeguards are intended to ensure that all the containers on each
pallet have been inspected and certified in the event a card on an
individual container or containers is removed, misplaced, or lost.
    The Stone Fruit Grade and Size Subcommittee also discussed the 31-
pound net weight requirement for all five down Euro containers at its
meeting on November 6, 2002. At that time, it was noted by one handler
that the current net weight of 31 pounds and exemption from the well-
filled requirement are applicable to only the RPCs. The handler noted,
however, that the industry also currently uses five down Euro boxes
that are not RPCs. He further suggested that all five down Euro boxes
should be required to meet the net weight of 31 pounds and be exempted
from the requirement to be well-filled. The subcommittee agreed and
unanimously recommended the change to the committees. The alternative
would have meant that only the RPC five down Euro containers would have
been subject to the minimum regulated with a net weight of 31 pounds,
and exempted from the requirement to be well-filled. In consideration
of uniformity for five down Euro containers, this alternative was
rejected.
    In 1996, Sec. Sec. 916.350 and 917.442 were revised to permit
shipments of ``CA Utility'' quality nectarines and peaches as an
experiment during the 1996 season only. Such shipments have
subsequently been permitted each season. Since 1996, shipments of ``CA
Utility'' have ranged from 1 to 5 percent of total nectarine and peach
shipments. This rule authorizes continued shipments of ``CA Utility''
quality nectarines and peaches during the 2003 season.
    The Grade and Size Subcommittee met on November 6, 2002, and
briefly discussed ``CA Utility'' quality nectarines and peaches. The
subcommittee ultimately did not make a recommendation to the NAC and
PCC regarding continued shipments of ``CA Utility'' quality nectarines
and peaches. The subcommittee did, however, request that the results of
a grower survey on attitudes toward ``CA Utility'' quality fruit
conducted in December of 2001 by the committees be provided to the
committees at the December 3, 2002, meeting.
    However, at their meetings on December 3, 2002, the NAC and PCC
unanimously recommended to continue to allow shipments of ``CA
Utility'' quality nectarines and peaches.
    Sections 916.350 and 917.442 establish container, pack, and marking
requirements for shipments of nectarines and peaches, respectively.
This rule makes changes to the pack and container marking requirements
of the orders' rules and regulations to establish a net weight of 31
pounds for all types of five down Euro boxes, and exempt such boxes
from the well-filled requirement.
    Section 917.442 also establishes minimum weight-count standards for
containers of peaches. Under these requirements, containers of peaches
are required to meet weight-count standards for a maximum number of
peaches in a 16-pound sample when such peaches are packed in a tray-
packed container. Those same maximum numbers of peaches are also
applicable to volume-filled containers, based upon the tray-packed
standard. The weight-count standard was developed so handlers may
convert tray-packed peaches to volume-filled containers and be assured
that fruit of a specific size in the volume-filled container will be
the same as that in the tray-packed container.
    When the Stone Fruit Grade and Size Subcommittee met, they
discussed the recent changes in the packing and

[[Page 17263]]

marketing of Peento type peaches. When these varieties were first
introduced and marketed, they were generally tray-packed because they
were a novel and premium product. As production has increased, the
value of the varieties has diminished in the marketplace, and some
handlers have converted their tray-packed containers of Peento type
peaches to volume-filled containers. Weight-count standards provide a
basis for volume filling containers of other varieties of peaches.
Currently, Peento type peaches are regulated under a new table of
weight-count standards applicable to only these uniquely-shaped
peaches.
    The staff continued to conduct weight-count studies during the 2002
season so that weight-count standards could be perfected, thus ensuring
that all handlers are handling a standard maximum number of peaches in
a 16-pound sample. During the studies, the staff learned that all
available sizes of Peento type peaches were being packed in volume-
filled containers, including sizes for which there were not yet minimum
weight-count standards. For that reason, modifications to Table 3 in
paragraph (a)(5)(vi) of Sec. 917.442 are made to include additional
sizes 30 and 32, which are larger-sized Peento peaches.
    Sections 916.356 and 917.459 establish minimum maturity levels.
This rule makes annual adjustments to the maturity requirements for
several varieties of nectarines and peaches. Maturity requirements are
based on maturity measurements generally using maturity guides (e.g.,
color chips), as recommended by Shipping Point Inspection. Such
maturity guides are reviewed annually by SPI to determine the
appropriate guide for each nectarine and peach variety. These annual
adjustments reflect refinements in measurements of the maturity
characteristics of nectarines and peaches as experienced over previous
seasons' inspections. Adjustments in the guides utilized ensure that
fruit has met an acceptable level of maturity, ensuring consumer
satisfaction while benefiting nectarine and peach producers and
handlers.
    Currently, in Sec. 916.356 of the nectarine order's rule and
regulations, and in Sec. 917.459 of the peach order's rule and
regulations, minimum sizes for various varieties of nectarines and
peaches, respectively, are established. This rule makes adjustments to
the minimum sizes authorized for various varieties of nectarines and
peaches for the 2003 season. Minimum size regulations are put in place
to encourage producers to leave fruit on the trees for a longer period
of time. This increased growing time not only improves maturity, but
also increases fruit size. Increased fruit size increases the number of
packed containers per acre, and coupled with heightened maturity
levels, also provides greater consumer satisfaction, fostering repeat
purchases. Such improved consumer satisfaction and repeat purchases
benefit both producers and handlers alike.
    Annual adjustments to minimum sizes of nectarines and peaches, such
as these, are recommended by the NAC and PCC based upon historical
data, producer and handler information regarding sizes attained by
different varieties, and trends in consumer purchases.
    An alternative to such action would include not establishing
minimum size regulations for these new varieties. Such an action,
however, would be a significant departure from the committees'
practices and represent a significant change in the regulations as they
currently exist; would ultimately increase the amount of less
acceptable fruit being marketed to consumers; and, thus, would be
contrary to the long-term interests of producers, handlers, and
consumers. For these reasons, this alternative was not recommended.
    The committees make recommendations regarding all the revisions in
handling and lot stamping requirements after considering all available
information, including recommendations by various subcommittees,
comments of persons at subcommittee meetings, and comments received by
committee staff. Such subcommittees include the Stone Fruit Grade and
Size Subcommittee, the Inspection and Compliance Subcommittee, and the
Executive Committee.
    At the meetings, the impact of and alternatives to these
recommendations are deliberated. These subcommittees, like the
committees themselves, frequently consist of individual producers and
handlers with many years' of experience in the industry who are
familiar with industry practices and trends. Like all committee
meetings, subcommittee meetings are open to the public and comments are
widely solicited. In the case of the Stone Fruit Grade and Size
Subcommittee, many growers and handlers who are affected by the issues
discussed by the subcommittee attend and actively participate in the
public deliberations. In addition, minutes of all subcommittee meetings
are distributed to committee members and others who have requested
them, thereby increasing the availability of information within the
industry.
    Each of the recommended handling requirement changes for the 2003
season is expected to generate financial benefits for produces and
handlers through increased fruit sales, compared to the situation that
would exist if the changes were not adopted. Both large and small
entities are expected to benefit from the changes, and the costs of
compliance are not expected to be substantially different between large
and small entities.
    This rule does not impose any additional reporting and
recordkeeping requirements on either small or large handlers. As with
all Federal marketing order programs, reports and forms are
periodically reviewed to reduce information requirements and
duplication by industry and public sector agencies.
    USDA has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this rule. However, as previously stated,
nectarines and peaches under the orders have to meet certain
requirements set forth in the standards issued under the Agricultural
Marketing Act of 1946 (7 CFR 1621 et seq.). Standards issued under the
Agricultural Marketing Act of 1946 are otherwise voluntary.
    In addition, the committees' meetings are widely publicized
throughout the nectarine and peach industry and all interested parties
are encouraged to attend and participate in committee deliberations on
all issues. These meetings are held annually during the last week of
November or first week of December. Like all committee meetings, the
December 3, 2002, meetings were public meetings, and all entities,
large and small, were encouraged to express views on these issues.
These regulations were also reviewed and thoroughly discussed at a
subcommittee meeting held on November 6, 2002. Finally, interested
persons are invited to submit information on the regulatory and
informational impacts of this action on small businesses.
    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.
    This rule invites comments on changes to the handling requirements
currently prescribed under the marketing orders for California fresh
nectarines and peaches. Any comments

[[Page 17264]]

received will be considered prior to finalization of this rule.
    After consideration of all relevant matters presented, the
information and recommendations submitted by the committees, and other
information, it is found that this interim final rule, as hereinafter
set forth, will tend to effectuate the declared policy of the Act.
    Pursuant to 5 U.S.C. 553, it is also found and determined, upon
good cause, that it is impracticable, unnecessary, and contrary to the
public interest 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 because: (1) California nectarine and peach producers
and handlers should be apprised of this rule as soon as possible, since
shipments of these fruits are expected to begin in early April; (2)
this rule relaxes grade requirements for nectarines and peaches; (3)
the committees unanimously recommended these changes at public meetings
and interested persons had opportunities to provide input at these
meetings; and (4) the rule provides a 60-day comment period, and any
written comments timely received will be considered prior to any
finalization of this interim final rule.

List of Subjects

7 CFR Part 916

    Marketing agreements, Nectarines, Reporting and recordkeeping
requirements.

7 CFR Part 917

    Marketing agreements, Peaches, Pears, Reporting and recordkeeping
requirements.

0
For the reasons set forth in the preamble, 7 CFR parts 916 and 917 are
amended as follows:
0
1. The authority citation for 7 CFR parts 916 and 917 continues to read
as follows:

    Authority: 7 U.S.C. 601-674.

PART 916--NECTARINES GROWN IN CALIFORNIA

0
2. Section 916.115 is revised to read as follows:

Sec. 916.115 Lot stamping.

    Except when loaded directly into railway cars, exempted under Sec.
916.110, or for nectarines mailed directly to consumers in consumer
packages, all exposed or outside containers of nectarines, and not less
than 75 percent of the total containers on a pallet, shall be plainly
stamped, prior to shipment, with a Federal-State Inspection Service lot
stamp number, assigned by such Service, showing that such fruit has
been USDA inspected in accordance with Sec. 916.55: Provided, That for
the period April 1 to October 31, 2003, pallets of returnable plastic
containers shall have the lot stamp numbers affixed to each pallet with
a USDA-approved pallet tag, in addition to the lot stamp numbers and
other required information on cards on the individual containers.
0
3. Section 916.350 is amended by:
0
A. Revising paragraph (a)(1);
0
B. Revising paragraph (a)(8); and
0
C. Revising paragraph (d) to read as follows:

Sec. 916.350 California nectarine container and pack regulation.

    (a) * * *
    (1) Such nectarines, when packed in any closed package or
container, except master containers of consumer packages, individual
consumer packages, and five down Euro containers, shall conform to the
requirements of standard pack: Provided, That nectarines in any such
volume-filled container need only be filled to within one-inch of the
top of the container.
* * * * *
    (8) Each five down Euro container of loose-filled nectarines shall
bear on one outside end in plain sight and in plain letters the words
``31 pounds net weight.''
* * * * *
    (d) During the period April 1 through October 31, 2003, each
container or package when packed with nectarines meeting the ``CA
Utility'' quality requirements, shall bear the words ``CA Utility,''
along with all other required container markings, in letters at least
\3/8\ inch in height on the visible display panel. Consumer bags or
packages must also be clearly marked on the consumer bags or packages
as ``CA Utility,'' along with all other required markings, in letters
at least 3/8 inch in height.

0
4. Section 916.356 is amended by:
0
A. Revising paragraph (a)(1) introductory text;
0
B. Revising Table 1; and
0
C. Revising the introductory text of paragraphs (a)(3), (a)(4), and
(a)(6) to read as follows:

Sec. 916.356 California nectarine grade and size regulation.

    (a) * * *
    (1) Any lot or package or container of any variety of nectarines
unless such nectarines meet the requirements of U.S. No. 1 grade:
Provided, That nectarines 2 inches in diameter or smaller, shall not
have fairly light-colored, fairly smooth scars which exceed an
aggregate area of a circle 3/8 inch in diameter, and nectarines larger
than 2 inches in diameter shall not have fairly light-colored, fairly
smooth scars which exceed an aggregate area of a circle 1/2 inch in
diameter: Provided further, That an additional tolerance of 25 percent
shall be permitted for fruit that is not well formed but not badly
misshapen: Provided further, That all varieties of nectarines which
fail to meet the U.S. No. 1 grade only on account of lack of blush or
red color due to varietal characteristics shall be considered as
meeting the requirements of this subpart: Provided further, That during
the period April 1 through October 31, 2003, any handler may handle
nectarines if such nectarines meet ``CA Utility'' quality requirements.
The term ``CA Utility'' means that not more than 40 percent of the
nectarines in any container meet or exceed the requirements of the U.S.
No. 1 grade, except that when more than 30 percent of the nectarines in
any container meet or exceed the requirements of the U.S. No. 1 grade,
the additional 10 percent shall have non-scoreable blemishes as
determined when applying the U.S. Standards for Grades of Nectarines;
and that such nectarines are mature and are:
* * * * *
    (iv) * * *

                                 Table 1
------------------------------------------------------------------------
              Column A variety Column B maturity guide
------------------------------------------------------------------------
Alshir Red................................. J
April Glo.................................. H
August Glo................................. L
August Lion................................ J
August Red................................. J
Aurelio Grand.............................. F
Autumn Delight............................. L
Autumn Grand............................... L
Big Jim.................................... J
Diamond Bright............................. J
Diamond Jewel.............................. L
Diamond Ray................................ L
Earliglo................................... I
Early Diamond.............................. J
Early May.................................. F
Early May Grand............................ H
Early Red Jim.............................. J
Early Sungrand............................. H
Fairlane................................... L
Fantasia................................... J
Firebrite.................................. H
Fire Sweet................................. J
Flame Glo.................................. L
Flamekist.................................. L
Flaming Red................................ K
Flavortop.................................. J
Grand Diamond.............................. L
Gran Sun................................... L
Honey Blaze................................ J
Honey Kist................................. I

[[Page 17265]]

Honey Royale............................... J
Independence............................... H
July Red................................... L
June Brite................................. I
Juneglo.................................... H
Kay Diamond................................ L
King Jim................................... L
Kism Grand................................. J
Late Le Grand.............................. L
Late Red Jim............................... J
Mango...................................... B
May Diamond................................ I
May Fire................................... H
Mayglo..................................... H
May Grand.................................. H
May Jim.................................... I
May Kist................................... H
May Lion................................... J
Mid Glo.................................... L
Moon Grand................................. L
Niagra Grand............................... H
P-R Red.................................... L
Prince Jim................................. L
Prima Diamond XIII......................... L
Red Delight................................ I
Red Diamond................................ L
Red Fred................................... J
Red Free................................... L
Red Glen................................... J
Red Glo.................................... I
Red Grand.................................. H
Red Jewel.................................. L
Red Jim.................................... L
Red May.................................... J
Rio Red.................................... L
Rose Diamond............................... J
Royal Delight.............................. F
Royal Giant................................ I
Royal Glo.................................. I
Ruby Diamond............................... L
Ruby Grand................................. J
Ruby Sun................................... J
Ruby Sweet................................. J
Scarlet Red................................ K
September Free............................. J
September Grand............................ L
September Red.............................. L
Sheri Red.................................. J
Sparkling June............................. L
Sparkling May.............................. J
Sparkling Red.............................. L
Spring Bright.............................. L
Spring Diamond............................. L
Spring Ray................................. L
Spring Sweet............................... J
Spring Red................................. H
Star Brite................................. J
Summer Beaut............................... H
Summer Blush............................... J
Summer Bright.............................. J
Summer Diamond............................. L
Summer Fire................................ L
Summer Grand............................... L
Summer Lion................................ L
Summer Red................................. L
Sunburst................................... J
Sun Diamond................................ I
Sunecteight (Super Star)................... G
Sun Grand.................................. G
Sunny Red.................................. J
Tom Grand.................................. L
Zee Glo.................................... J
Zee Grand.................................. I
------------------------------------------------------------------------
Note: Consult with the Federal or Federal-State Inspection Service
  Supervisor for the maturity guides applicable to the varieties not
  listed above.

* * * * *
    (3) Any package or container of Mayglo variety of nectarines on or
after May 6 of each year, or Crimson Baby, Earliglo, Early Diamond,
Grand Sun, or May Kist variety nectarines unless:
* * * * *
    (4) Any package or container of Arctic Rose, Arctic Star, Diamond
Bright, Juneglo, June Pearl, Kay Glo, Kay Sweet, May Diamond, May
Grand, Prima Diamond IV, Prima Diamond VI, Prima Diamond XIII, Prince
Jim, Prince Jim 1, Red Delight, Red Glo, Red Roy, Rose Diamond, Royal
Glo, Sparkling May, White Sun, or Zee Grand variety nectarines unless:
* * * * *
    (6) Any package or container of Alta Red, Arctic Blaze, Arctic Ice,
Arctic Jay, Arctic Mist, Arctic Pride, Arctic Queen, Arctic Snow (White
Jewel), Arctic Sweet, August Glo, August Lion, August Pearl, August
Red, August Snow, Big Jim, Bright Pearl, Bright Sweet, Candy Gold,
Candy Sweet, Diamond Ray, Early Red Jim, Firebrite, Fire Pearl, Fire
Sweet, Flame Glo, Flaming Red, Grand Diamond, Grand Pearl, Grand Sweet,
Honey Blaze, Honey Kist, Honey Royale, July Pearl, July Red, June Lion,
Kay Pearl, King Jim, Late Red Jim, P-R Red, Prima Diamond IX, Prima
Diamond XVIII, Prima Diamond XIX, Prima Diamond XXIV, Prima Diamond
XXVIII, Red Diamond, Red Glen, Red Jim, Regal Pearl, Regal Red, Royal
Giant, Ruby Diamond, Ruby Pearl, Ruby Sweet, Scarlet Red, September
Bright (26P-490), September Free, September Red, Sparkling June,
Sparkling Red, Spring Bright, Spring Sweet, Summer Blush, Summer
Bright, Summer Diamond, Summer Fire, Summer Grand, Summer Jewel, Summer
Lion, Summer Red, Sunburst, Sun Diamond, Sunny Red, Sun Valley Sweet,
Sweet White, Terra White, or Zee Glo variety nectarines unless:
* * * * *

PART 917--FRESH PEARS AND PEACHES GROWN IN CALIFORNIA

0
5. Section 917.150 is revised to read as follows:

Sec. 917.150 Lot stamping.

    Except when loaded directly into railway cars, exempted under Sec.
917.143, or for peaches mailed directly to consumers in consumer
packages, all exposed or outside containers of peaches, and not less
than 75 percent of the total containers on a pallet, shall be plainly
stamped, prior to shipment, with a Federal-State Inspection Service lot
stamp number, assigned by such Service, showing that such fruit has
been USDA inspected in accordance with Sec. 917.45: Provided, That for
the period April 1 through November 23, 2003, pallets of returnable
plastic containers shall have the lot stamp numbers affixed to each
pallet with a USDA-approved pallet tag, in addition to the lot stamp
numbers and other required information on cards on the individual
containers.

0
5. Section 917.442 is amended by:
0
A. Revising paragraph (a)(1);
0
B. Revising Table 3;
0
C. Revising paragraph (a)(9); and
0
D. Revising paragraph (d) to read as follows:

Sec. 917.442 California peach container and pack regulation.

    (a) * * *
    (1) Such peaches, when packed in any closed package or container,
except master containers of consumer packages, individual consumer
packages, and five down Euro containers, shall conform to the
requirements of standard pack: Provided, That peaches in any such
volume-filled container need only be filled to within one-inch of the
top of the container.
* * * * *
    (5) * * *
    (iv) * * *

Table 3.--Weight-Count Standards for Peento Type Peaches Packed in Loose-
                    Filled or Tight-Filled Containers
------------------------------------------------------------------------
                                             Column B-- Maximum number
   Column A-- Tray pack size designation of peaches in a 16-pound
                                                        sample
------------------------------------------------------------------------
80......................................... 140
72......................................... 128
70......................................... 111
64......................................... 99
60......................................... 93
56......................................... 87
54......................................... 80
50......................................... 77
48......................................... 74
44......................................... 70

[[Page 17266]]

42......................................... 68
40......................................... 59
36......................................... 53
34......................................... 50
32......................................... 39
30......................................... 32
------------------------------------------------------------------------

* * * * *
    (9) Each five down Euro container of loose-filled peaches shall
bear on one outside end in plain sight and in plain letters the words
``31 pounds net weight.''
* * * * *
    (d) During the period April 1 through November 23, 2003, each
container or package when packed with peaches meeting ``CA Utility''
quality requirements, shall bear the words ``CA Utility,'' along with
all other required container markings, in letters at least \3/8\ inch
in height on the visible display panel. Consumer bags or packages must
also be clearly marked on the consumer bags or packages as ``CA
Utility,'' along with all other required markings, in letters at least
\3/8\ inch in height.

0
7. Section 917.459 is amended by:
0
A. Revising the introductory text of paragraph (a)(1);
0
B. Revising the introductory text of paragraph (a)(1)(iv);
0
C. Revising Table 1; and
0
D. Revising the introductory text of paragraphs (a)(3), (a)(5), and
(a)(6) to read as follows:

Sec. 917.459 California peach grade and size regulation.

    (a) * * *
    (1) Any lot or package or container of any variety of peaches
unless such peaches meet the requirements of U.S. No. 1 grade:
Provided, That an additional 25 percent tolerance shall be permitted
for fruit with open sutures which are damaged, but not seriously
damaged: Provided further, That peaches of the Peento type shall be
permitted a 10 percent tolerance for healed, non-serious, blossom-end
growth cracks: Provided further, That during the period April 1 through
November 23, 2003, any handler may handle peaches if such peaches meet
``CA Utility'' quality requirements. The term ``CA Utility'' means that
not more than 40 percent of the peaches in any container meet or exceed
the requirement of the U.S. No. 1 grade, except that when more than 30
percent of the peaches in any container meet or exceed the requirements
of U.S. No. 1 grade, the additional 10 percent shall have non-scoreable
blemishes as determined when applying the U.S. Standards for Grades of
Peaches; and that such peaches are mature and are:
* * * * *
    (iv) The Federal or Federal-State Inspection Service shall make the
final determinations on maturity through the use of color chips or
other tests as determined appropriate by the inspection agency. The
Federal or Federal-State Inspection Service will use the maturity
guides listed in Table 1 in making maturity determinations for the
specified varieties when inspecting to the ``well matured'' level of
maturity. For these varieties, not less than 90 percent of any lot
shall meet the color guide established for the variety, and an
aggregate area of not less than 90 percent of the fruit surface shall
meet the color guide established for the variety, except that for the
Joanna Sweet variety of peaches, any of the fruit surface that is not
red shall meet the color guide established for the variety, including
any color noted in the stem cavity. For varieties not listed, the
Federal or Federal-State Inspection Service will use such tests as it
deems proper. A variance for any variety from the application of the
maturity guides specified in Table 1 may be granted during the season
to reflect changes in crop, weather, or other conditions that would
make the specified guides an inappropriate measure of ``well matured.''

                                 Table 1
------------------------------------------------------------------------
              Column A variety Column B maturity guide
------------------------------------------------------------------------
Angelus.................................... I
August Lady................................ L
Autumn Flame............................... J
Autumn Gem................................. I
Autumn Lady................................ H
Autumn Red................................. J
Autumn Rose................................ H
Blum's Beauty.............................. G
Brittney Lane.............................. J
Cal Red.................................... I
Carnival................................... I
Cassie..................................... H
Coronet.................................... E
Crimson Lady............................... J
Crown Princess............................. J
David Sun.................................. I
Diamond Princess........................... J
Earlirich.................................. H
Earlitreat................................. H
Early Delight.............................. H
Early Elegant Lady......................... L
Early May Crest............................ H
Early O'Henry.............................. I
Early Top.................................. G
Elberta.................................... B
Elegant Lady............................... L
Fairtime................................... G
Fancy Lady................................. J
Fay Elberta................................ C
Fire Red................................... I
First Lady................................. D
Flamecrest................................. I
Flavorcrest................................ G
Flavor Queen............................... H
Flavor Red................................. G
Franciscan................................. G
Goldcrest.................................. H
Golden Princess............................ L
Honey Red.................................. G
Joanna Sweet............................... J
John Henry................................. J
July Elberta............................... C
June Lady.................................. G
June Pride................................. J
Kern Sun................................... H
Kingscrest................................. H
Kings Lady................................. I
Kings Red.................................. I
Lacey...................................... I
Lady Sue................................... L
Late Ito Red............................... L
Madonna Sun................................ J
Magenta Queen.............................. J
May Crest.................................. G
May Sun.................................... I
Merrill Gem................................ G
Merrill Gemfree............................ G
Morning Lord............................... J
O'Henry.................................... I
Pacifica................................... G
Pretty Lady................................ J
Prima Gattie 8............................. L
Prima Gattie 10............................ J
Queencrest................................. G
Ray Crest.................................. G
Red Dancer (Red Boy)....................... I
Redhaven................................... G
Red Lady................................... G
Redtop..................................... G
Regina..................................... G
Rich Lady.................................. J
Rich May................................... H
Rich Mike.................................. H
Rio Oso Gem................................ I
Royal Lady................................. J
Royal May.................................. G
Ruby May................................... H
Ryan Sun................................... I
September Flame............................ I
September Sun.............................. I
Sierra Crest............................... H
Sierra Lady................................ I
Sparkle.................................... I
Sprague Last Chance........................ L
Springcrest................................ G
Spring Delight............................. G
Spring Lady................................ H
Springtreat................................ I

[[Page 17267]]

Summer Lady................................ L
Summerset.................................. I
Summer Zee................................. L
Suncrest................................... G
Supechfour (Amber Crest)................... G
Super Rich................................. H
Sweet Dream................................ J
Sweet Gem.................................. J
Sweet Mick................................. J
Sweet Scarlet.............................. J
Topcrest................................... H
Tra Zee.................................... J
Vista...................................... J
Willie Red................................. G
Zee Lady................................... L
------------------------------------------------------------------------
Note: Consult with the Federal or Federal-State Inspection Service
  Supervisor for the maturity guides applicable to the varieties not
  listed above.

* * * * *
    (3) Any package or container of Snow Kist or Super Rich variety
peaches unless:
* * * * *
    (5) Any package or container of Babcock, Bev's Red, Brittney Lane,
Crimson Lady, Crown Princess, David Sun, Early May Crest, Flavorcrest,
Happy Dream, June Lady, Kern Sun, Kingscrest, Magenta Queen, May Crest,
May Sun, May Sweet, Pink Rose, Prima Peach IV, Queencrest, Ray Crest,
Redtop, Rich May, Rich Mike, Snow Brite, Snow Prince, Springcrest,
Spring Flame 21, Spring Lady, Spring Snow, Springtreat (60EF32), Sugar
May, Sunlit Snow (172LE81), Sweet Scarlet, Zee Diamond, 012-094, or
172LE White Peach (Crimson Snow/Sunny Snow) variety peaches unless:
* * * * *
    (6) Any package or container of August Flame, August Lady, Autumn
Flame, Autumn Red, Autumn Rose, Autumn Snow, Cassie, Coral Princess,
Country Sweet, Diamond Princess, Earlirich, Early Elegant Lady, Elegant
Lady, Fairtime, Fancy Lady, Fay Elberta, Flamecrest, Full Moon, Henry
II, Ivory Princess, Jillie White, Joanna Sweet, John Henry, July Flame,
June Flame, June Pride, Kaweah, Kings Lady, Klondike, Late Ito Red,
O'Henry, Pink Giant, Pretty Lady, Prima Gattie 8, Prima Peach 13, Prima
Peach XV, Prima Peach 20, Prima Peach 23, Prima Peach XXV, Prima Peach
XXVII, Princess Gayle, Queen Lady, Red Dancer, Red Giant, Rich Lady,
Royal Lady, Ryan Sun, Saturn (Donut), Scarlet Snow, September Flame,
September Snow, September Sun, Sierra Gem, Sierra Lady, Snow Beauty,
Snow Blaze, Snow Fall, Snow Gem, Snow Giant, Snow Jewel, Snow King,
Snow Princess, Sprague Last Chance, Spring Gem, Sugar Giant, Sugar
Lady, Summer Dragon, Summer Lady, Summer Sweet, Summer Zee, Supechfour
(Amber Crest), Sweet Dream, Sweet Gem, Sweet Kay, Sweet September, Tra
Zee, Vista, White Lady, Zee Lady, or 24-SB variety peaches unless:
* * * * *

    Dated: April 3, 2003.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 03-8650 Filed 4-4-03; 1:33 pm]

BILLING CODE 3410-02-P



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