[Federal Register Volume 65, Number 231 (Thursday, November 30, 2000)]
[Proposed Rules]
[Pages 71272-71273]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-30140]


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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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Federal Register / Vol. 65, No. 231 / Thursday, November 30, 2000 / 
Proposed Rules

[[Page 71272]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Chapter I

Grain Inspection, Packers and Stockyards Administration

7 CFR Chapter VIII

[Docket Number FGIS-2000-001a]
RIN 0580-AA73


Request for Public Comments on How USDA Can Best Facilitate the 
Marketing of Grains, Oilseeds, Fruits, Vegetables, and Nuts in Today's 
Evolving Marketplace

AGENCY: Agricultural Marketing Service; Grain Inspection, Packers and 
Stockyards Administration, USDA.

ACTION: Advance notice of proposed rulemaking.

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SUMMARY: The United States Department of Agriculture (USDA) invites 
comments from producers, handlers, processors, food manufacturers, 
exporters, consumers, scientists, industry representatives, and other 
interested persons on how USDA can best facilitate the marketing of 
grains, oilseeds, fruits, vegetables, and nuts in a market that 
includes both crops derived from biotechnology and other crops. USDA is 
seeking comment on current and anticipated market practices, and on the 
feasibility of and need for USDA's involvement in quality assurance or 
other programs to facilitate the marketing of these products.
    This action is part of the Administration's biotechnology 
initiative announced last May. Its purpose is to lend order to the 
development of voluntary identity preservation and product segregation 
procedures to the extent they emerge from the private sector. (In the 
context of this notice, biotechnology refers to the use of recombinant 
DNA technology to alter or move genetic material for a plant to exhibit 
a desired trait.)
    Modern biotechnology may present new marketing opportunities as 
well as challenges. As biotechnology offers the possibility of 
accelerating the development of value-added crops, such as high oleic 
soybeans and beta-carotene-rich rice, producers as well as others in 
the marketing system may have an interest in maintaining the identity 
of the value-added crops. Based on consumer preferences and our trading 
partners' requirements, some food companies are already buying raw 
materials that are not derived from biotechnology, or requiring their 
suppliers to avoid use of biotechnology-derived varieties or identify 
them as such. This has resulted in some segments of the market 
differentiating biotechnology derived crops from other crops from farm 
to supermarket. In this evolving marketplace, USDA is exploring how it 
can continue to foster the marketing of U.S. grains, oilseeds, fruits, 
vegetables, and nuts.

DATES: Comments must be received on or before February 28, 2001.

ADDRESSES: Interested persons are invited to submit written comments on 
this notice to Richard Hardy, GIPSA, USDA, 1400 Independence Avenue, 
SW, Room 0757-S, Washington, DC 20250-3650. Comments may also be sent 
by fax to (202) 720-2459 or filed via the Internet through the GIPSA 
homepage at www.usda.gov/gipsa.
    It is our intention to have all comments on this advance notice of 
proposed rulemaking (ANPRM), whether mailed, faxed, or submitted via 
the Internet, available for viewing on the GIPSA homepage at 
www.usda.gov/gipsa in a timely manner.
    Comments submitted in response to this ANPRM will also be available 
for viewing in room 0757-S from 9 a.m. to 12 noon and from 1 p.m. to 4 
p.m. Monday through Friday (except official Federal holidays) (7 CFR 
1.27). Persons wanting to visit the USDA South Building to view 
comments received in response to this proposal are requested to make an 
appointment in advance by calling (202) 720-4848.

FOR FURTHER INFORMATION CONTACT: Marianne Plaus, Assistant to the 
Deputy Administrator, Federal Grain Inspection Service, GIPSA, 202-690-
3460.

SUPPLEMENTARY INFORMATION: This action has been determined to be 
significant for purposes of Executive Order 12866, and therefore, has 
been reviewed by the Office of Management and Budget.
    Accurate, reliable information on the quality, quantity, and 
condition of products being traded fosters the efficient marketing of 
agricultural commodities. Such information helps buyers know that they 
have received what they paid for and that suppliers receive due 
compensation. USDA facilitates the marketing of many products by making 
such information available through a variety of programs.
    USDA's grade standards for grains, oilseeds, fruits, vegetables, 
and nuts provide a common language for trade by defining products and 
ranges for quality factors. The market uses the standards to measure 
the value or establish the price of agricultural commodities. USDA's 
grading and inspection services determine the quality and condition of 
commodities. These determinations are performed in accordance with 
applicable standards or product specifications using approved 
methodologies, and can be applied at any point in the marketing chain. 
The current testing technology for quality attributes, such as oil 
content for high oil corn, is rapid (usually taking less than 2 
minutes) and reliable, yielding consistent results. In addition, USDA 
issues certificates describing the quality and condition of the graded 
products that are accepted as prima facie evidence in all Federal 
courts. U.S. grade standards, and the various grading and testing 
services offered by USDA, verify that the seller's product meets 
specified requirements, and that customers get the quality products 
they expect.
    In addition, USDA administers a variety of audit-based 
certification programs in lieu of end-item testing. Under these 
programs, USDA audits a supplier's ability to meet system performance 
requirements or criteria that are based on nationally and 
internationally accepted standards and guidelines that have been 
validated by USDA.
    USDA also carries out programs that combine testing, certification, 
and quality assurance processes. For example, USDA's seed program 
includes procedures and standards used by seed certifying agencies 
during the production and processing of the seed they certify for 
varietal purity.

[[Page 71273]]

    The introduction of commodities derived from biotechnology may 
result in new opportunities and challenges, both for USDA, the Federal 
government as a whole, and American agriculture. Some consumers have 
expressed, for a variety of reasons, a preference for foods that are 
not bioengineered or do not contain bioengineered foods as ingredients. 
Further, some countries have established or are considering 
establishing labeling requirements for bioengineered foods. These 
market developments are prompting some food companies to differentiate 
crops derived from biotechnology from other crops in the food 
production system. Furthermore, as biotechnology offers the possibility 
of accelerating the development of value-added crops, such as high 
oleic soybeans and beta-carotene-rich rice, producers as well as others 
in the marketing system may have an interest in maintaining the 
identity of value-added crops.
    The cost and complexity of differentiating crops derived from 
biotechnology from other crops varies by crop and the infrastructure 
supporting the marketing of each crop. Differentiation of crops derived 
from biotechnology from other crops requires analytical testing and 
information systems that can effectively and efficiently track and 
manage the complex logistics involved with preserving the identity of 
specific crops through the marketing process. The market's ability to 
supply a specific crop may hinge on a number of considerations: The 
potential market size and value, the cost of differentiating the 
specific crop from other crops, and the market's ability to preserve 
the crop identity at sufficient purity levels.
    In the grain and oilseed markets, some companies are using 
traditional segregation practices to market value-added commodities. 
Others are using more costly and complicated identity preservation (IP) 
processes. Food companies are developing quality assurance processes 
involving various levels of testing and product tracking, which differ 
by company, customer needs, and crop, to source and deliver specified 
crops from the farm to the supermarket. In some instances, independent 
organizations are marketing services to review and verify the 
performance of these quality assurance processes.
    USDA is issuing this advance notice of proposed rulemaking to 
invite comments from all interested persons on how USDA can best 
facilitate the marketing of grains, oilseeds, fruits, vegetables, and 
nuts in today's evolving marketplace. USDA is seeking comment on 
current market needs and practices, and the feasibility and 
desirability of USDA programs and services to facilitate the marketing 
of these products. All interested persons are encouraged to comment on 
the following issues related to this notice:
    <bullet> In light of changes in the marketplace brought about by 
biotechnology, what specific programs or processes are being used to 
market grains, oilseeds, fruits, vegetables, and nuts in the domestic, 
export, and import markets? Please be specific, and include information 
on obstacles encountered in marketing these products.
    <bullet> What additional costs and benefits are generally 
associated with the practices being used to market grains, oilseeds, 
fruits, vegetables, or nuts? Please provide details and quantifiable 
cost and benefit estimates.
    <bullet> Would a set of U.S. standards upon which to base IP or 
other marketing systems facilitate market development? If so, are there 
any specific national or international standards or guidelines that 
should serve as the basis for the U.S. standards? What role should USDA 
have in establishing these standards?
    <bullet> As more certifying companies and organizations evolve to 
review and verify the performance of food company IP systems, should 
USDA have a role in the accreditation of these certifying companies and 
organizations? Would a USDA accreditation of these certifying companies 
and organizations serve to facilitate marketing?
    <bullet> USDA is in the process of developing a program for 
accrediting qualified commercial and public laboratories for the 
analytical detection of grains and oilseeds derived from biotechnology. 
Should USDA expand this program for other commercialized crops? Should 
USDA include laboratories outside the United States in the 
accreditation program? If so, how would this help facilitate the 
marketing of U.S. crops?
    <bullet> Should USDA provide, for a fee, direct product 
certification for crops derived from biotechnology based on an audit-
based quality assurance process? Should the same be done for other 
crops?
    <bullet> Should USDA provide direct analytical detection services 
and certification for crops derived from biotechnology? Should the same 
be done for other crops?
    <bullet> If USDA involvement (e.g., standards, certifying agent 
verification, direct certification, testing, etc.) is necessary, at 
what point of the marketing system should such involvement begin and 
end?
    <bullet> How should a fee structure be determined for such 
services?
    <bullet> Should such involvement be limited to U.S.-produced crops 
or expanded to imported crops?
    <bullet> Should USDA establish definitions of crops derived from 
biotechnology or for crops not derived from biotechnology as part of 
the current U.S. quality grades and standards? If so, what technical 
capabilities, resources, data, etc., would USDA require?
    USDA welcomes your comments on these and other relevant issues 
related to the marketing of grains, oilseeds, fruits, vegetables, and 
nuts in today's evolving marketplace.

    Authority: 7 U.S.C. 71 et seq. and 7 U.S.C. 1621 et seq.

    Dated: November 20, 2000.
James R. Baker,
Administrator, Grain Inspection, Packers and Stockyards Administration.
Michael D. Fernandez,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 00-30140 Filed 11-29-00; 8:45 am]
BILLING CODE 3410-EN-U