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[Federal Register: October 18, 2010 (Volume 75, Number 200)]
[Proposed Rules]               
[Page 63724-63725]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18oc10-18]                         

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Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

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[[Page 63724]]

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 989

[Doc. No. AMS-FV-10-0044; FV10-989-2 PR]

 
Raisins Produced From Grapes Grown in California; Use of 
Estimated Trade Demand To Compute Volume Regulation Percentages

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Withdrawal of proposed rule.

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SUMMARY: This action withdraws a proposed rule published in the Federal 
Register on August 6, 2010 (75 FR 47490), on the use of an estimated 
trade demand figure to compute volume regulation percentages for 2010-
11 crop Natural (sun-dried) Seedless (NS) raisins covered under the 
Federal marketing order for California raisins (order). The order 
regulates the handling of raisins produced from grapes grown in 
California and is administered locally by the Raisin Administrative 
Committee (committee). The proposal provided parameters for 
implementing volume regulations for 2010-11 NS raisins for the purpose 
of maintaining the industry's export program and stabilizing the 
domestic market. Based upon comments in response to the proposed rule, 
conditions in the industry, the change in the worldwide raisin outlook, 
and the lack of industry support for an estimated trade demand, the 
proposed rule is being withdrawn.

FOR FURTHER INFORMATION CONTACT: Terry Vawter, Senior Marketing 
Specialist or Kurt J. Kimmel, Regional Manager, California Marketing 
Field Office, Marketing Order Administration Branch, Fruit and 
Vegetable Programs, AMS, USDA; Telephone: (559) 487-5901, Fax: (559) 
487-5906, or E-mail: Terry.Vawter@ams.usda.gov or 
Kurt.Kimmel@ams.usda.gov.
    Small businesses may request information on complying with this 
regulation by contacting Antoinette Carter, 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: 
Antoinette.Carter@ams.usda.gov.

SUPPLEMENTARY INFORMATION: Marketing Agreement and Order No. 989, both 
as amended (7 CFR part 989), regulate the handling of raisins produced 
from grapes grown in California, hereinafter referred to as the 
``order.'' The order is effective under the Agricultural Marketing 
Agreement Act of 1937, as amended (7 U.S.C. 601-674), hereinafter 
referred to as the ``Act.''
    This action withdraws a proposed rule, published in the Federal 
Register on August 6, 2010 (75 FR 47490), on the establishment of an 
estimated trade demand figure to compute volume regulation percentages 
for 2010-11 crop Natural (sun-dried) Seedless (NS) raisins covered 
under the order.
    Specifically, the proposed rule would have provided authority for 
the committee to use an estimated trade demand for the 2010-11 crop NS 
raisins to compute volume regulation percentages, creating a reserve if 
the crop estimate is equal to, less than, or no more than 10 percent 
greater than the computed trade demand prescribed under the order; 
provided that the final reserve percentage computed using such 
estimated trade demand shall be no more than 10 percent, and no reserve 
would be established if the final 2010-11 NS raisin crop estimate is 
less than 110 percent of the previous crop year's domestic shipments.
    Reserve raisins have historically been used by the committee to 
support market development programs that have strengthened export sales 
and reduced surpluses, thus providing stability to the domestic market.
    During the comment period, August 6 through 23, 2010, the 
Department of Agriculture (USDA) received eight timely comments. These 
comments may be reviewed at: http://www.regulations.gov. Readers may 
access the docket and comments submitted by typing the docket number, 
AMS-FV-10-0044, into the Keyword field on the home page and clicking on 
Search. The docket details, including the list of comments, appear on 
the lower third of the search results page.
    Of the eight comments received, two favored implementation of the 
proposed rule. These commenters expressed their view that the 
establishment of an estimated trade demand is necessary to ensure that 
volume regulation in established for the 2010-2011 crop year. 
Establishment of volume regulation would in turn allow development and 
funding of an export program to support handler sales in export 
markets. According to these comments, such an export program is 
necessary for the California raisin industry to maintain an 
international market presence, sustain current sales momentum, and to 
be competitive in the global raisin market.
    Six of the eight comments did not favor implementation of the 
proposed rule. These commenters generally stated that conditions in the 
industry and the worldwide raisin outlook had changed since the 
proposed rule was recommended. More specifically, the California raisin 
industry has contracted, and the supply and demand for raisins in 
domestic and export markets is relatively balanced. The commenters also 
noted that the recommendation for this action was made prior to the 
availability of data indicating that the 2010-2011 raisin crops in 
Chile and Turkey are estimated to be smaller than in previous years. 
The expected shorter global supply of raisins provides export marketing 
opportunities for handlers of California raisins and lessens the need 
for an export program to support handler's sales, according to the 
commenters. Further, one commenter stated that if volume regulation and 
an export program are implemented this year, it could result in 
inadequate raisin supplies for the domestic market. Other commenters 
expressed the opinion that with worldwide supply and demand in balance, 
the California raisin industry should not utilize volume regulation to 
support handler's export sales.
    Since the committee made its unanimous recommendation to utilize 
estimated trade demand for the 2010-2011 crop year on May 13, 2010, 
additional and more current information has become available indicating 
the industry and worldwide raisin situation has changed, thus reducing 
the need to implement this rule. In addition, comments received from 
handlers and growers indicate a lack of support for

[[Page 63725]]

this action. USDA has therefore determined to withdraw this rule.
    Accordingly, the proposed rule regarding the establishment of an 
estimated trade demand figure to compute volume regulation percentages 
for 2010-11 crop NS raisins published in the Federal Register on August 
6, 2010 (75 FR 47490), is hereby withdrawn.

List of Subjects in 7 CFR Part 989

    Grapes, Marketing agreements, Raisins, Reporting and recordkeeping 
requirements.

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

    Dated: October 8, 2010.
Rayne Pegg,
Administrator, Agricultural Marketing Service.
[FR Doc. 2010-26163 Filed 10-15-10; 8:45 am]
BILLING CODE 3410-02-P
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