[Federal Register Volume 74, Number 142 (Monday, July 27, 2009)]
[Proposed Rules]
[Pages 36955-36959]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-17802]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1218

[Document Number AMS-FV-09-0021; FV-09-704]


Blueberry Promotion, Research, and Information Order; Assessment 
Increase

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This rule proposes to amend the Blueberry Promotion, Research, 
and Information Order (Order) to increase the assessment rate on 
producers and importers who produce or import more than 2,000 pounds of 
highbush blueberries annually from $12 per ton to $24 per ton. The 
increase provided under the Order is authorized by the Commodity 
Promotion, Research, and Information Act of 1996 (Act). The U.S. 
Highbush Blueberry Council (Council) which administers the Order 
recommended this action to expand their promotional activities and add 
an advertising component to bridge the potential gap between highbush 
blueberry demand and future supply. Furthermore, the Council 
recommended to use the additional revenue to strengthen existing 
consumer, food service, and food manufacturer publicity; to expand 
their health research; to develop an educational campaign on good 
management practices and food safety within the United States as well 
as internationally.

DATES: Comments must be received by September 25, 2009.

ADDRESSES: Interested persons are invited to submit written comments on 
the Internet at: http://www.regulations.gov or to the Research and 
Promotion Branch, Fruit and Vegetable Programs, Agricultural Marketing 
Service (AMS), U.S. Department of Agriculture (Department), Room 0632-
S, Stop 0244, 1400 Independence Avenue, SW., Washington, DC 20250-0244; 
facsimile: (202) 205-2800. 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 in the above 
office during regular business hours or can be viewed at http://www.regulations.gov. All comments received will be posted without 
change, including any personal information provided.

FOR FURTHER INFORMATION CONTACT: Jeanette Palmer, Marketing Specialist, 
Research and Promotion Branch, Fruit and Vegetable Programs, AMS, U.S. 
Department of Agriculture, Stop 0244, 1400 Independence Avenue, SW., 
Room 0632-S, Washington, DC 20250-0244; telephone: (888) 720-9917; 
facsimile: (202) 205-2800; or electronic mail: 
<a href="/cdn-cgi/l/email-protection#baf0dfdbd4dfcecedf94eadbd6d7dfc8fadbd7c994cfc9dedb94ddd5cc"><span class="__cf_email__" data-cfemail="eda7888c8388999988c3bd8c8180889fad8c809ec3989e898cc38a829b">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: This rule is issued under the Blueberry 
Promotion, Research, and Information Order [7 CFR Part 1218]. The Order 
is authorized under the Commodity Promotion, Research, and Information 
Act of 1996 [7 U.S.C. 7401-7425].

Executive Order 12866

    The Office of Management and Budget (OMB) has waived the review 
process required by Executive Order 12866 for this action.

Executive Order 12988

    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. The rule is not intended to have retroactive effect and 
will not affect or preempt any other State or Federal law authorizing 
promotion or research relating to an agricultural commodity.
    The Act provides that any person subject to an order may file a 
written petition with the Department if they believe that the order, 
any provision of the order, or any obligation imposed in connection 
with the order, is not established in accordance with law. In any 
petition, the person may request a modification of the order or an 
exemption from the order. The petitioner is afforded the opportunity 
for a hearing on the petition. After a hearing, the Department would 
rule on the petition. The Act provides that the district court of the 
United States in any district in which the petitioner resides or 
conducts business shall have the jurisdiction to review the 
Department's ruling on the petition, provided a complaint is filed not 
later than 20 days after the date of the entry of the ruling.

Initial Regulatory Flexibility Act and Paperwork Reduction Act

    In accordance with the Regulatory Flexibility Act (RFA) [5 U.S.C. 
601 et seq.], the Agricultural Marketing Service has considered the 
economic impact of this action on the small producers, first handlers, 
and importers that would be affected by this rule. The purpose of the 
RFA is to fit regulatory action to scale on businesses subject to such 
action so that small businesses will not be disproportionately 
burdened.
    The Small Business Administration defines, in 13 CFR Part 121, 
small agricultural producers as those having annual receipts of no more 
than $750,000 and small agricultural service firms as those having 
annual receipts of no more than $7 million. There are approximately 
2,000 producers, 200 first handlers, 50 importers, and 4 exporters of 
highbush blueberries subject to the program. Most of the producers 
would be classified as small businesses under the criteria established 
by the Small Business Administration. Most importers, first handlers, 
and exporters would not be classified as small businesses. Producers 
who produce less than 2,000 pounds of highbush blueberries annually are 
exempt from this program. Importers who import less than 2,000 pounds 
of fresh and frozen highbush blueberries annually are also exempt from 
this program.

[[Page 36956]]

    Under the current Order, domestic producers and importers who 
produce or import more than 2,000 pounds of highbush blueberries 
annually are required to pay an assessment to the Council. The current 
assessment rate is $12 per ton levied on highbush blueberries produced 
within the 50 States, the District of Columbia, the Commonwealth of 
Puerto Rico, and the territories and possessions of the United States 
and on imports of more than 2,000 pounds into the United States. 
Assessments under the program are used by the Council to finance 
promotion, health research and communication programs designed to 
increase consumer demand for highbush blueberries in the United States 
and international markets. The assessment rate of $12 per ton which 
became effective on August 16, 2000, generates approximately $2.4 
million in annual revenues. The Order is administered by the Council 
with oversight by the Department.
    The Council has made projections of funds generated at the current 
$12 per ton on forecasted highbush blueberry production increases. 
Based on these projections, the Council has calculated that the 
domestic market promotion budget would not increase sufficiently in the 
next few years to accomplish the Council's expanded market promotion 
goal of adding a meaningful advertising campaign to the highbush 
blueberry industry. The funds are distributed as follows: a 15 percent 
allocation to administration and general expenses; a 20 percent 
allocation to research; and a 65 percent allocation to market 
promotion.
    Currently, the Council and the North American Blueberry Council 
(NABC) share office space which is a cost effective measure for both 
organizations which allows the Council to keep administration and 
general expenses within 15 percent or less of the budget. The NABC 
signed a lease for new office space and NABC and the Council will 
relocate in June 2009. As a result, the Council will save an estimated 
$8,715 on rental fees annually. The Council has also changed meeting 
locations to less expensive places in order to cut costs. For example, 
the Council is currently considering whether to keep future meetings at 
airport hub locations such as Atlanta, Georgia. Even with such cost-
cutting measures, the Council still requires additional revenue to 
maintain and expand its promotional and research activities.
    The Council believes that additional revenue is required to 
aggressively promote the consumption of a growing supply of highbush 
blueberries, expand health research and marketing among consumers and 
industrial users within the United States and international countries, 
and increase educational effort in the areas of good management 
practices and food safety. The Council approved the proposed assessment 
rate of $24 per ton at its February 28, 2009, meeting. This proposed 
increase is consistent with section 517 (d) of the Act that permits 
changes in the assessment rate through notice and comment rulemaking 
procedures. Section 1218.52 (c) of the Order states that assessments 
are to be levied at a rate of $12 per ton on all highbush blueberries. 
The assessment rate may be reviewed and modified with the approval of 
the Secretary of Agriculture (Secretary).
    The Council made this recommendation in light of projected 2008 
highbush blueberry production totals that continue to set historic 
production levels. The Council stated that successive large highbush 
blueberry crops have led to increased inventory levels and a weakening 
of the market. Using data from the NABC's Blueberry Statistical Record, 
in 2007, the North American highbush blueberry industry produced 356 
million pounds of highbush blueberries, an increase of 16 million 
pounds over the previous record of 340 million pounds produced in 2006. 
Based on most recent estimates from the NABC Blueberry Statistical 
Record, the 2008 highbush blueberry crop has once again surpassed 
records and totaled an estimated 407 million pounds.
    The North American highbush blueberry production has increased more 
than five fold over the past 40 years from 70 million pounds in 1968 to 
the estimated 407 million pounds produced in 2008 and more than twice 
the level produced ten years ago of 185 million pounds in 1998. 
Domestic projections continue to show a growing supply of highbush 
blueberries in the years to come based upon the amount of new plantings 
as well as the recent enhancement of existing fields that are gradually 
being replaced with higher yielding varieties, or are benefiting from 
improved farming practices.
    Based on the Council's World Blueberry Acreage and Production 
Report, highbush blueberry acreage in North America increased from 
71,075 acres in 2005 to an estimated 95,607 acres in 2008, a 35 percent 
increase in just three years. The United States share of this total 
increased from 56,665 acres in 2005 to 74,992 acres in 2008, a 32 
percent increase. Most of this acreage growth is coming from the higher 
yielding western and southern states. Highbush blueberry production 
volume is expected to increase significantly from these regions in the 
coming years. Since the domestic market production for highbush 
blueberries is increasing, the Council recommends expanding their 
promotional activities by strengthening their existing consumer, food 
service, and food manufacturer publicity and export market promotion 
programs to keep highbush blueberry demand ahead of supply.
    In 2008, the United States exported 13,791 metric tons of fresh 
highbush blueberries worth over $69 million. Canada is the principal 
destination for United States exports-accounting for nearly 84 percent 
of the total in 2008. Other key markets included the United Kingdom at 
7 percent and Japan at 6 percent of the total. The remaining 3 percent 
of the United States exports were sent mostly to Asian countries.
    The United States exports of frozen highbush blueberries totaled 
5,785 metric tons in 2008 and were valued over $17 million. The largest 
United States export market for frozen highbush blueberries is Canada 
which accounted for 47 percent of the total quantity exported in 2008. 
Japan was the second largest United States market accounting for 39 
percent. The remaining 14 percent of United States exports were sent 
mainly to other Asian, United Kingdom, and European countries.
    In 2008, the United States imported 45,105 metric tons of fresh 
highbush blueberries worth over $229 million. The largest imports of 
highbush blueberries came from Chile which accounted for 61 percent of 
the total in 2008. Other major suppliers of fresh highbush blueberries 
were Canada at 19 percent and Argentina at 17 percent of the total. The 
remaining 3 percent of imported highbush blueberries came from New 
Zealand and Uruguay.
    The United States imports of frozen highbush blueberries totaled 
19,152 metric tons in 2008 and were valued over $64 million. The bulk 
of the United States frozen highbush blueberries imports came from 
Canada which accounted for 78 percent of total in 2008. Other major 
suppliers of frozen highbush blueberries were Chile with 16 percent of 
the total, Argentina with 5 percent and the Netherlands with 1 percent.
    According to the Council, assessments received in 2008 reached $2.4 
million. Of the total, the Council received $830,222 from import 
assessment collections which is approximately 35 percent of the 
Council's total budget. The Council has projected import assessment 
collections at $850,000 for the 2009 budget year.

[[Page 36957]]

    In the international market, highbush blueberry production has 
increased in Canada, Mexico, Latin America, Europe, and Asia. The 
highbush blueberry acreage worldwide has nearly doubled in the past 
five years from an estimated 83,299 acres in 2003 to an estimated 
163,065 acres in 2008. Based on the data in the Council's 2007-2008 
World Acreage and Production Report, North America represented 77 
percent of the total worldwide highbush blueberry acreage in 2003 
(64,360 acres), but just 59 percent of the estimated total acreage in 
2008 (95,607 acres).
    Most of the worldwide growth over the past five years has taken 
place in South America which has increased acreage from an estimated 
6,939 acres in 2003 to an estimated 39,703 acres in 2008, a nearly six 
fold increase with the largest growth in Chile and Argentina. Most of 
the growth in European production, which has increased from 8,978 acres 
in 2003 to 18,038 in 2008, has taken place in Spain, Germany, and 
Poland. Asian highbush blueberry production has increased during this 
five-year period from 2,372 acres to 7,870 acres with most of the 
growth taking place in China and to a lesser extent Japan. Acreage in 
Australia and New Zealand has not significantly increased during this 
period.
    Given worldwide acreage estimates, projections show that given 
optimal conditions with no crop losses or disruptions, total worldwide 
highbush blueberry production has the potential to increase from an 
estimated 606 million pounds in 2008 to an estimated 1.5 billion pounds 
by the year 2015, more than two times the current level of production 
in the next seven years. This total does not include lowbush (wild) 
blueberry production, which at the current time averages around 200 
million pounds per year. These projections are considered ``optimal'' 
forecasts and are based on the potential of what has been planted to 
date as well as upon assumptions of favorable crop years in all 
international highbush blueberry growing regions. During this period 
North American highbush blueberry production is estimated to increase 
from 407 million pounds in 2008 to 890 million pounds by the year 2015, 
more than two times the current level of production. With expanded 
worldwide production of highbush blueberries projected to increase 
supply, the Council recommends that additional revenue be used to 
explore new markets internationally as well as find new uses and 
applications for highbush blueberries in the United States.
    Even though the highbush blueberry production is expected to 
increase over the next few seasons, the rate of increase should begin 
to slow as planting is expected to decline over this time period, as it 
is traditionally the case with other crops that have experienced the 
same growth patterns as the current one enjoyed by the highbush 
blueberry industry. However, a corresponding rapid growth in per capita 
consumption over the next seven years will be needed to keep pace with 
domestic and international highbush blueberry production in order to 
maintain a supply and demand balance. The Council believes that if they 
do not conduct more aggressive promotional efforts, the total demand 
may fall short of the projected supply.
    Due to the domestic and international highbush blueberry production 
increase, the effect of the highbush blueberry supply is reflected in 
current frozen highbush blueberry inventory. The most recent 
Department's National Agricultural Statistic Service Public Cold 
Storage Report (Report), shows February 2009 inventory of frozen 
highbush and lowbush blueberries at 130 million pounds, an increase of 
36 million pounds over the total of 94 million pounds held in inventory 
at the same time in 2008. Given the anticipated size of the 2008 
highbush blueberry crop, carry in inventory at the start of the 2008 
season, and projected movement of the 2008 crop (even at levels above 
those recorded in previous years), the Council projects a significant 
increase in carry out inventory at the start of the 2009 domestic 
highbush blueberry season. Although fresh highbush blueberry demand and 
movement in the United States continues to increase and frozen highbush 
blueberry exports have been increasing over the past three seasons, 
there are still increased amounts of highbush blueberries in cold 
storage, particularly over the last three years. This trend is expected 
to continue unless efforts are taken to more aggressively promote 
highbush blueberries and work toward a more balanced supply and demand 
situation.
    The Council has found the increase in the highbush blueberry 
interest reflected in per capita consumption increases in the United 
States. According to the NABC Statistical Record 2007, the United 
States has seen impressive gains in per capita consumption over the 
past ten years. Total highbush blueberry consumption both fresh and 
processed has increased by 68 percent from slightly over 13 ounces per 
person in 1997 to just over 22 ounces per person in 2007. Most of this 
increase has been in the fresh market with fresh consumption nearly 
doubling over this period from 4.8 ounces per person to an estimated 
9.2 ounces per person. During this same period, process (frozen) 
highbush blueberry consumption was up 55 percent from 8.4 ounces to 13 
ounces per person.
    With the proposed increased assessment rate, the financial 
commitment of the United States highbush blueberry industry for generic 
research and promotion activity would increase 100 percent in current 
dollars. For example, if the Council applies the proposed assessment 
increase to the 2008 crop year, in which collections totaled $2.4 
million, the increase in assessments collected would have been 
approximately an additional $2.4 million for a total of $4.8 million. 
The Council plans to use additional funds to broaden current 
promotional programs with consumers, food service, and food 
manufacturers within the United States and international countries. 
Furthermore, the Council plans to add an advertising component to 
expand the reach and frequency of highbush blueberry messages and 
explore new and evolving media options offered through the Internet and 
web-based communications. The Council is currently supporting age-
related disease and vision studies with a number of universities the 
additional funding will enable human clinical research trials to begin. 
By changing the assessment rate to $24 per ton, the Council stated that 
the additional funding will allow for a greater educational effort in 
the areas of good management practices and food safety.
    According to the Department's National Agricultural Statistic 
Service Noncitrus Fruits and Nuts 2008 Preliminary Summary notes the 
United States price per pound for fresh highbush blueberries in 2008 
totaled $2.11 per pound and $0.859 per pound for processed highbush 
blueberries. Using these prices, the proposed $12 per ton assessment 
rate increase will cost the producer approximately .006 cents per pound 
which represents an increase of approximately .003 percent of the total 
fresh price per pound and .007 percent of the total processed price per 
pound.
    Section 1218.55 of the Order requires the Council to conduct an 
independent evaluation of the effectiveness of the program conducted by 
the Council pursuant to the Act every five years. The Council submits 
the independent evaluation to the Department which is available to the 
public. An econometric evaluation titled ``An Economic Analysis of 
Domestic Market Impacts of the U.S. Highbush Blueberry Council'' was 
conducted by Dr. Harry Kaiser of

[[Page 36958]]

Cornell University in 2005. The study evaluated the Council's progress 
based on data from 2001 to 2004. The estimated demand equation used in 
the study was simulated to determine the market impacts of the 
Council's promotion activities for the period of 2001 to 2004. In the 
baseline scenario, promotion expenditures were set equal to actual 
levels from 2001 to 2004. In another scenario without the Council's 
marketing activities, promotion expenditures were set equal to zero for 
the same period. The difference between the two scenarios gives the 
total impact of the Council promotion programs on domestic highbush 
blueberry commercial disappearance. The simulation results indicated 
that the Council had a major impact on annual highbush blueberry demand 
in the United States. From 2001 to 2004, the Council's promotion 
activities increased total highbush blueberry commercial disappearance 
by 36 million pounds, or 9 million pounds per year. This represents an 
annual increase in highbush blueberry commercial disappearance of 
almost three percent during this period. The study concluded that the 
promotional spending by the Council clearly had a positive effect on 
domestic highbush blueberry demand.
    The evaluation also indicated that generic highbush blueberry 
promotion by the Council had a positive impact on the highbush 
blueberry growers' price over this period. The average increase in 
price ranged from 2.3 cents per pound in the case of the least elastic 
supply response, to 0.8 cents per pound in the case of the most elastic 
supply response. The average impact over all supply responses was 1.4 
cents per pound. According to the evaluation, had there not been 
generic highbush blueberry promotion by the Council, the average 
growers' price would have been 1.4 cents per pound, or 1.8 percent, 
lower from 2001 to 2004.
    The benefits of the Council program were highlighted using a 
Benefit Cost Ratio (BCR) analysis. An average BCR was computed for the 
generic promotion activities of the Council, and the BCR exceeded 1.0 
for every supply response considered in the simulation. For the least 
elastic supply response, the average BCR was 13.22. This implies that, 
on average over the period 2001-2004, the benefits of the Council 
promotion programs have been over 13 times greater than the costs. At 
the opposite end of the spectrum in supply response, the average BCR 
was computed to be 4.46, implying that the benefits of the Council were 
over four times greater than the costs. Given the wide range of supply 
responses considered in the analysis, and the fact that the BCR was 
above 1.0 in all cases, there is significant evidence that the 
Council's promotion programs have been profitable for the domestic 
highbush blueberry industry.
    According to the Council, such findings give added confidence that 
an expanded market promotion program will help the industry to work 
toward a supply and demand balance in the coming years as highbush 
blueberry production expands at an increasing rate.
    With regards to alternatives, the Council evaluated a media plan 
designed to advertise to consumers nationwide with a proposed rate of 
$18 per ton on highbush blueberries. At this assessment rate level, the 
Council could continue to support its current market promotion efforts 
and add a $1 million media budget for advertising. This level would 
result in 45 percent reach and a frequency of 4 of the target audience 
which is 18 million out of the 40 million of the United States 
population. The Council discussed the rate of $18 per ton and 
determined that the highbush blueberry potential supply and demand 
situation would require a need to create greater awareness than the 
level that could be generated at $18 per ton. Therefore, the Council 
decided to recommend the rate of $24 per ton on highbush blueberries 
which is the first assessment increase since the Council was 
established in August 2000.
    This rule does not impose additional recordkeeping requirements on 
producers, first handlers, exporters, or importers of highbush 
blueberries. Producers of fewer than 2,000 pounds of highbush 
blueberries and importers of less than 2,000 pounds of fresh and frozen 
highbush blueberries annually are exempt.
    There are no Federal rules that duplicate, overlap, or conflict 
with this rule.
    In accordance with the Office of Management and Budget (OMB) 
regulation [5 CFR part 1320] which implements the Paperwork Reduction 
Act of 1995 [44 U.S.C. Chapter 35], the information collection and 
recordkeeping requirements that are imposed by the Order have been 
approved previously under OMB control number 0581-0093. This rule does 
not result in a change to the information collection and recordkeeping 
requirements previously approved.
    We have performed this Initial Regulatory Flexibility Analysis 
regarding the impact of this proposed amendment to the Order on small 
entities, and we invite comments concerning potential effects of this 
amendment on small businesses.

Background

    Under the Order, the Council administers a nationally coordinated 
program of research, development, advertising, and promotion designed 
to strengthen the position of highbush blueberries in the marketplace, 
and to establish, maintain, and expand markets for highbush 
blueberries. This program is financed by assessments on producers 
growing 2,000 pounds or more of highbush blueberries and importers who 
import 2,000 or more pounds of highbush blueberries per year. The Order 
specifies that handlers are responsible for collecting and submitting 
the producer assessments to the Council and maintaining records 
necessary to verify their reporting(s). Importers are responsible for 
payment of assessments to the Council on highbush blueberries imported 
into the United States through the U.S. Customs Service and Border 
Protection.
    This rule proposes to increase the assessment rate to $24 per ton 
for producers and importers who produce and import more than 2,000 
pounds of highbush blueberries annually. Currently, the assessment rate 
is $12 per ton levied on highbush blueberries produced within the 50 
States, the District of Columbia, the Commonwealth of Puerto Rico, and 
the territories and possessions of the United States and imports of 
more than 2,000 pounds into the United States. In order to expand 
promotion, health research, new uses and applications for highbush 
blueberries, and education about good management practices for food 
safety, the Council believes that additional revenue is needed. The 
proposed $24 per ton assessment rate increase is estimated to generate 
$2.4 million in new revenue for a total of $4.8 million depending on 
production levels. For the 2008 crop year, total production was 408 
million pounds of highbush blueberries resulting in $2.4 million in 
assessment collections. Of the total, the Council received $830,222 
from import assessment collections which is approximately 35 percent of 
the Council's total budget. The Council has projected import assessment 
collections at $850,000 for the 2009 budget year. With the additional 
revenue, the Council would continue to dedicate 65 percent of their 
budget to market promotions and expand its existing promotional 
programs directed to consumers, food service and food manufacturers and 
add an advertising component to reach consumers nationwide, as well as 
internationally.

[[Page 36959]]

Also, the Council would invest additional funds to explore new uses and 
applications for highbush blueberries in the domestic and international 
markets. Furthermore, the Council stated that it will use the 
additional resources to expand the health research studies.
    Furthermore, the Council whose members represent all highbush 
blueberry producing states as well as importers voted to increase the 
assessment rate at its February 28, 2009, meeting. The vote to 
recommend the assessment increase was nine in favor and two against of 
the Council members present at the meeting. The two voters against the 
change expressed concern about how the growers might respond to an 
assessment increase given the overall economic climate the industry is 
facing and noted how an assessment increase might impact voting on the 
program continuance referendum in 2011. One of the two dissenters noted 
that in a meeting held in his region prior to the Council's meeting, 
the growers had discussed and supported the $18 per ton assessment rate 
increase, but did not discuss the $24 per ton increase. Accordingly, he 
did not feel comfortable voting for the change. Both dissenting voters 
stated that they were willing to support an $18 per ton assessment 
increase instead of the proposed $24 per ton.
    The Council evaluated a media plan designed to advertise to 
consumers nationwide with a proposed rate of $18 per ton on highbush 
blueberries. At this assessment rate level, the Council could continue 
to support its current market promotion efforts and add a $1 million 
media budget for advertising. This level would result in 45 percent 
reach and a frequency of 4 of the target audience which is 18 million 
out of the 40 million of the United States population. The Council 
discussed the rate of $18 per ton and determined that the highbush 
blueberry potential supply and demand situation would require a need to 
create greater awareness than the level that could be generated at $18 
per ton. Therefore, the Council voted to recommend the rate of $24 per 
ton on highbush blueberries which is the first assessment increase 
since the Council was established in August 2000.
    If adopted, the Council's recommended assessment rate would be 
applicable to the 2010 highbush blueberry crop. The higher assessment 
rate on the 2010 crop would generate additional dollars allocated for 
the 2011 budget year. The Council plans to increase the domestic 
marketing budget beginning that year to $4 million which would allow 
for as much as $2 million allocation to advertising to increase the 
frequency of the Council's message. According to the Council, this 
increase would gain greater awareness for highbush blueberries.
    This rule would amend the rules and regulations under the Order. 
The rate would increase the assessment from $12 per ton to $24 per ton 
on highbush blueberries. This proposed increase is consistent with 
section 517(d) of the Act that permits changes in the assessment rate 
through notice and comment procedures. Section 1218.52(c) of the Order 
state assessments can be levied at a rate of $12 per ton on all 
highbush blueberries. The assessment rate will be reviewed and may be 
modified with the approval of the Secretary.
    The Council is recommending the proposed assessment rate increase 
for the following reasons: (1) A potential gap between highbush 
blueberry demand and future supply in the United States; (2) efforts 
are necessary to strengthen the Council's existing consumer, food 
service, and food manufacturer publicity and export market promotion 
programs and add an advertising component to expand the reach and 
frequency of the highbush blueberry message; (3) the Council plans to 
invest additional revenue to explore new markets both domestic and 
international, as well as to explore new uses and application for 
highbush blueberries; (4) to expand its investment in more health 
research and move to human clinical trials to discover additional 
product attributes; and (5) added funding will allow for greater 
educational effort in the critical areas of good management practices 
and food safety. Accordingly, section 1218.52(c) of the Order would be 
revised.
    A 60-day comment period is provided to allow interested persons to 
respond to this proposal. All written comments received in response to 
this rule by the date specified would be considered prior to finalizing 
this action.

List of Subjects in 7 CFR Part 1218

    Administrative practice and procedure, Advertising, Consumer 
information, Marketing agreements, Blueberry promotion, Reporting and 
recordkeeping requirements.
    For the reasons set forth in the preamble, Part 1218, Chapter XI of 
Title 7 is proposed to be amended as follows:

PART 1218--BLUEBERRY PROMOTION, RESEARCH, AND INFORMATION ORDER

    1. The authority citation for 7 CFR part 1218 continues to read as 
follows:

    Authority:  7 U.S.C. 7411-7425; 7 U.S.C. 7401.

    2. In Sec.  1218.52, paragraph (c) is revised to read as follows:


Sec.  1218.52  Assessments.

* * * * *
    (c) Such assessments shall be levied at a rate of $24 per ton on 
all blueberries. The assessment rate will be reviewed, and may be 
modified with the approval of the Secretary, after the first referendum 
is conducted as stated in Sec.  1218.71(b).
* * * * *

    Dated: July 21, 2009.
David R. Shipman,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. E9-17802 Filed 7-24-09; 8:45 am]
BILLING CODE 3410-02-P


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