Source: https://www.federalregister.gov/documents/2014/05/08/2014-10371/marketing-order-regulating-the-handling-of-spearmint-oil-produced-in-the-far-west-salable-quantities
Timestamp: 2018-09-20 23:07:12
Document Index: 766330507

Matched Legal Cases: ['art 985', '§\u2009985', '§\u2009985', '§\u2009985', '§\u2009985', '§\u2009985', '§\u2009985']

79 FR 26359
26359-26365 (7 pages)
https://www.federalregister.gov/d/2014-10371 https://www.federalregister.gov/d/2014-10371
Start Preamble Start Printed Page 26359
This final rule is issued under Marketing Order No. 985 (7 CFR Part 985), as amended, regulating the handling of spearmint oil produced in the Far West (Washington, Idaho, Oregon, and designated parts of Nevada and Utah), 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.”
Pursuant to authority in §§ 985.50, 985.51, and 985.52 of the order, the full eight-member Committee met on November 6, 2013, and recommended salable quantities and allotment Start Printed Page 26360percentages for both classes of oil for the 2014-2015 marketing year. The Committee unanimously recommended the establishment of a salable quantity and allotment percentage for Class 1 (Scotch) spearmint oil of 1,149,030 pounds and 55 percent, respectively. The Committee, also with a unanimous vote, recommended the establishment of a salable quantity and allotment percentage for Class 3 (Native) spearmint oil of 1,090,821 pounds and 46 percent, respectively.
(A) Estimated carry-in of Scotch spearmint oil on June 1, 2014—0 pounds. This figure is the difference between the revised 2013-2014 marketing year total available supply of 1,073,399 pounds and the estimated 2013-2014 marketing year trade demand of 1,073,399 pounds.
(B) Estimated trade demand of Scotch spearmint oil for the 2014-2015 marketing year—1,000,000 pounds. This figure is based on input from producers at five Scotch spearmint oil production area meetings held in late September and early October 2013, as well as estimates provided by handlers and other meeting participants at the November 6, 2013, meeting. The average estimated trade demand provided at the five production area meetings was 1,033,000 pounds, which is 25,750 pounds less than the average of trade demand estimates submitted by handlers. However, Far West Scotch spearmint oil sales have averaged 819,824 pounds per year over the last five years. Given this information, the Committee decided it was prudent to anticipate the trade demand at 1,000,000 pounds. Should the initially established volume control levels prove insufficient to adequately supply the market, the Committee has the authority to recommend intra-seasonal increases as needed.
(D) Total estimated allotment base of Scotch spearmint oil for the 2014-2015 marketing year—2,089,146 pounds. This figure represents a one-percent increase over the revised 2013-2014 total allotment base. This figure is generally revised each year on June 1 due to producer base being lost as a result of the bona fide effort production provisions of § 985.53(e). The revision is usually minimal.
(F) Recommended Scotch spearmint oil 2014-2015 marketing year allotment percentage—55 percent. This is the Committee's recommendation and is based on the computed allotment percentage (47.9 percent), the average of the computed allotment percentage figures from the five production area meetings (46.2 percent), and input from producers and handlers at the November 6, 2013, meeting. The recommended allotment percentage of 55 percent is also based on the Committee's determination that the computed percentage (47.9 percent) may not adequately supply the potential 2014-2015 Scotch spearmint oil market.
(H) Estimated total available supply of Scotch spearmint oil for the 2014-2015 marketing year—1,149,030 pounds. This figure is the sum of the 2014-2015 recommended salable Start Printed Page 26361quantity (1,149,030 pounds) and the estimated carry-in on June 1, 2014 (0 pounds).
(B) Estimated trade demand of Native spearmint oil for the 2014-2015 marketing year—1,300,000 pounds. This estimate is established by the Committee and is based on input from producers at six Native spearmint oil production area meetings held in late September and early October 2013, as well as estimates provided by handlers and other meeting participants at the November 6, 2013, meeting. The average estimated trade demand provided at the six production area meetings was 1,271,281 pounds, whereas the handlers' estimates ranged from 1,290,000 pounds to 1,400,000 pounds, and averaged 1,347,500 pounds. The average of Far West Native spearmint oil sales over the last five years is 1,190,928 pounds. Should the initially established volume control levels prove insufficient to adequately supply the market, the Committee has the authority to recommend intra-seasonal increases as needed.
(C) Salable quantity of Native spearmint oil required from the 2014-2015 marketing year production—992,703 pounds. This figure is the difference between the estimated 2014-2015 marketing year trade demand (1,300,000 pounds) and the estimated carry-in on June 1, 2014 (307,297 pounds). This is the minimum amount that the Committee believes is required to meet the anticipated 2014-2015 Native spearmint oil trade demand.
(D) Total estimated allotment base of Native spearmint oil for the 2014-2015 marketing year—2,371,350 pounds. This figure represents a one-percent increase over the revised 2013-2014 total allotment base. This figure is generally revised each year on June 1 due to producer base being lost as a result of the bona fide effort production provisions of § 985.53(e). The revision is usually minimal.
(F) Recommended Native spearmint oil 2014-2015 marketing year allotment percentage—46 percent. This is the Committee's recommendation based on the computed allotment percentage (41.9 percent), the average of the computed allotment percentage figures from the six production area meetings (39.9 percent), and input from producers and handlers at the November 6, 2013, meeting. The recommended allotment percentage of 46 percent is also based on the Committee's determination that the computed percentage (41.9 percent) may not adequately supply the potential 2014-2015 Native spearmint oil market.
The Scotch and Native spearmint oil salable quantities and allotment percentages of 1,149,030 pounds and 55 percent, and 1,090,821 pounds and 46 percent, respectively, are based on the goal of establishing and maintaining market stability. The Committee anticipates that this goal will be achieved by matching the available supply of each class of Spearmint oil to the estimated demand of such, thus Start Printed Page 26362avoiding extreme fluctuations in inventories and prices.
This regulation is similar to regulations issued in prior seasons. The average initial allotment percentage for the five most recent marketing years for Scotch spearmint oil is 41.4 percent, while the average initial allotment percentage for the same five-year period for Native spearmint oil is 50.2 percent. Costs to producers and handlers resulting from this rule are expected to be offset by the benefits derived from a stable market and improved returns. In conjunction with the issuance of this final rule, USDA has reviewed the Committee's marketing policy statement for the 2014-2015 marketing year. The Committee's marketing policy statement, a requirement whenever the Committee recommends volume regulation, fully meets the intent of § 985.50 of the order.
This final rule establishes the quantity of spearmint oil produced in the Far West, by class, that handlers may purchase from, or handle on behalf of, producers during the 2014-2015 marketing year. The Committee recommended this action to help maintain stability in the spearmint oil market by matching supply to estimated demand, thereby avoiding extreme fluctuations in supplies and prices. Establishing quantities that may be purchased or handled during the marketing year through volume regulations allows producers to plan their spearmint planting and harvesting to meet expected market needs. The provisions of §§ 985.50, 985.51, and 985.52 of the order authorize this rule.
Instability in the spearmint oil sub-sector of the mint industry is much more likely to originate on the supply side than the demand side. Fluctuations Start Printed Page 26363in yield and acreage planted from season-to-season tend to be larger than fluctuations in the amount purchased by handlers. Notwithstanding the recent global recession and the overall negative impact on demand for consumer goods that utilize spearmint oil, demand for spearmint oil tends to change slowly from year to year.
The use of volume control allows the industry to fully supply spearmint oil markets while avoiding the negative consequences of over-supplying these markets. The use of volume control is believed to have little or no effect on consumer prices of products containing spearmint oil and will not result in fewer retail sales of such products.Start Printed Page 26364
2. A new § 985.233 is added to read as follows:
The salable quantity and allotment percentage for each class of spearmint Start Printed Page 26365oil during the marketing year beginning on June 1, 2014, shall be as follows:
[FR Doc. 2014-10371 Filed 5-7-14; 8:45 am]