Fresh Produce Discussion Blog

Created by The Packer's National Editor Tom Karst

Thursday, December 10, 2009

Mexico Citrus Annual - USDA FAS 2009

Mexico Citrus Annual 2009

Report Highlights: MY 2009/10 (November-October) production of fresh oranges is forecast at lower levels compared to the already low levels of MY 2008/09 as production areas, mainly the northern states, were affected by dry weather conditions throughout 2009. Mexican orange exports are forecast to increase slightly from MY 2008/09 as more demand is expected from the international market. Meanwhile, total MY 2009/10 production for Key and Persian limes is forecast at two million metric tons (MMT) due to expected better weather conditions. Grapefruit production for MY 2009/10 is also forecast to be slightly higher compared to MY 2008/09 due to acreage coming into production and expected better weather conditions.

Executive Summary: MY 2009/10 (November-October) production of fresh oranges is forecast at lower levels compared to the already low levels of MY 2008/09 as production areas, mainly the northern states of Mexico, were affected by dry weather conditions throughout 2009. Mexican orange exports are forecast to increase slightly from export levels of MY 2008/09 as more demand is expected from the international market. The final export figures will depend on U.S. demand. Total MY 2009/10 production for Key and Persian limes is forecast at two million metric tons (MMT) due to expected better weather conditions. Lime exports for MY 2009/10 are forecast to increase slightly compared to MY 2008/09 exports. Since exports depend heavily on international demand from Europe and the United States, the current financial situation will ultimately influence demand. Grapefruit production for MY 2009/10 is forecast to be slightly higher compared to MY 2008/09 due to acreage coming into production and expected better weather conditions. Production for MY 2008/09 was low as expected as northern areas were affected by dry weather conditions. Some fruit could not reach the fresh market due to quality issues, and therefore was sold for processing. Grapefruit production for MY 2007/08 was revised upward based on official GOM data. Reliable production numbers for frozen concentrate orange juice (FCOJ) are difficult to obtain since no official statistical data are available. According to industry sources, FCOJ production for MY 2010 (January-December) is forecast to decrease to 65,000 MT due to an expected lower availability of fresh fruit for the industry. Exports of FCOJ for MY 2010
are forecast to decrease compared to previous years due to lower availability of fruit. The expectation of better international prices and stronger demand could increase exports more than forecast. It is likely that dry weather conditions will continue to affect orange and grapefruit production from the northern states, mainly Nuevo Leon, Tamaulipas, and the northern part of Veracruz. Production from the other states is expected to be good. Persian lime production overall is likely to face fewer problems from the dry weather since a slight increase in production is expected to counterbalance the dryness due to more flowerings. Although citrus imports are not significant compared to production, it could be affected by the weakening of the Mexican peso relative to the U.S. dollar [1] and the economic crisis afflicting the Mexican economy.[1] The exchange rate used in this report was the average exchange rate of 13.50 pesos to the dollar, unless
otherwise indicated.

LEMONS/LIMES, FRESH Persian and Key lime exports for MY 2009/10 are forecast to increase slightly compared to MY 2008/09 exports. However, exports depend heavily on international demand from Europe, the United States and the current financial market. Exports for MY 2008/09 remain unchanged from previous estimates, which are slightly lower compared to the previous marketing year due to decreased demand from international markets. The spring Persian lime harvest usually begins in the month of May, but in 2009 it began earlier in March, and since Europe commanded better prices (US$18/10 lb box), exporters shipped to Europe first. U.S. prices were low at that time due to economic recession and export prices improved by May (US$20/40 lb box). According to exporters, a good price for Persian limes is about US$40/ 40-lb box. Exports for MY 2007/08 were revised upward, due to stronger international demand than previously anticipated. According to producers, Persian limes from Mexico supply about 40 percent of the U.S. and Canadian markets. However, lime producers are expanding into new markets in Japan and Europe. International prices for Persian limes reached US$20-$30 per 40-pound box at the peak of winter but started at US$5 to $7 per 40-pound box in October/November. Lime imports continue to be minimal due to ample domestic supplies. MY 2009/10 imports are forecast at 1,000 MT. Data for MY 2007/08 and 2008/09 remains unchanged. Mexico's tariff rate on imported limes from the United States is zero under NAFTA.

Policy: CITRUS GREENING The Secretariat of Agriculture (SAGARPA) published an emergency regulation in the Diario Oficial (Federal Register), on July 8, 2009, that establishes a monitoring program to detect the anticipated introduction and dispersion of Huanglongbing (citrus greening or HLB). All domestic production of propagative vegetative material of citrus will be conducted under controlled and protected conditions complying with NOM-079-FITO-2002. In case of detection of HLB in any of the products listed in the regulation, SAGARPA will implement several actions to limit and control the point of infection along with other local plant health offices, state plant health committees, and the production chain for citrus and sweet and Key limes (See Report MX9043). Mexico is currently surveying a range of areas for the presence of the Asian greening bacterium, Candidatus Liberibacter asiaticus, in symptomatic host plants throughout the country.
Similarly, USDA and Mexico are conducting a joint suppression campaign aimed at reducing populations of the insect vector (Asian citrus pysllid - Diaphorina citri) along the United State/Mexico border. In fact, collaboration efforts recently expanded to include Central American countries to join efforts to control this pest. Although the Asian citrus pysllid is thought to be widespread throughout Mexico, there have been relatively few positive detections of citrus greening, and only in the states of Yucatan and Quintana Roo on the Yucatan Peninsula. The current trade impact is negligible since fruit are not considered a disease vector.

Marketing: The Mexican market is more sensitive to price than to quality. This is one of the main reasons for limited exports of U.S. citrus products. Because of the excellent quality, U.S. oranges command a price four to five times higher than does Mexican fruit. Some attempts have been made by U.S. firms to enter the market, but they have had limited success because of strategies emphasizing quality rather than price. Due to phytosanitary restrictions, only citrus fruit coming from California, Texas, and Arizona can be exported to Mexico.
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Apple dumping decision - Mexico

USDA FAS - Mexican tariffs

Report Highlights: On November 4, 2009, the Mexican Secretariat of Economy (SE) announced in the Diario Oficial (Federal Register) the NAFTA Panel’s decision regarding the anti-dumping investigation on imports of apples from the United States (see report MX9086). The ruling requested updated data from the SE with its final decision by December 15, 2009. However, on November 13, the SE notified all of the parties involved in the resolution that a final decision would
not be reached by December 15. Instead, the SE will issue a determination by March 1, 2010. In the meantime, the anti-dumping duty will apply until a decision is made.

General Information: According to the decision published in the Diario Oficial (Federal Register) on November 4, 2009, the NAFTA Panel resent this issue back to the Secretariat of Economy (SE) for further actions consistent with their investigation, in accordance with paragraph 8, Article 1904 of NAFTA. Specifically, the SE is required to reissue a new final determination considering data that focuses only on information from 2004-05 as indicated by the Secretariat in the Preliminary Investigation of September 29, 2005. (Note: This decision was issued by the NAFTA Panel on October 15, 2009, and published November 4, 2009.) According to the panel’s decision,official authorities should issue the new determination based on the following ? SE must base its determination on information and data contained in the files only. The SE must provide the percentage of the domestic production in question that was considered for analysis in case the SE determines positive injury findings. The SE must provide a justification if it chooses to exclude data from certain months, as established in the Preliminary Resolution, or includes producers that are also importers of apples.

SE CHANGES FINAL DATE TO MARCH 1 The SE was granted 60 days from the date of the decision (October 15, 2009) to reissue its final determination, which would have been December 15, 2009. On November 13, the SE notified all of the parties involved in the resolution that a final decision will not be reached by December 15. The SE will still comply with the Panel's guidelines and procedures (as noted above), but a determination will not be issued until March 1, 2010. Below is a timeline of proposed dates. Date SE Proposed Activities November 17, 2009 Starting Date: All parties must express their opinions on how the committee should conduct its investigation.
December 4, 2009 Due date to receive comments from participants. December 14, 2009 Due date for the participants to receive responses. December 15, 2009
As indicated by the Binational Panel, an analysis will be conducted using the established time period (2004-05) and opinions from the parties involved.

February 26, 2010 March 1, 2010 Deliver the final determination to the Binational Panel and notify all of the parties. For More Information:

AgMexico@usda.gov Fax: 011-52-55-5080-2532 Internet Connections: FAS Mexico Web Site: http://www.mexico-usato.com Useful Mexican Web Sites: Mexico's equivalent of the Secretariat of Agriculture, SAGARPA, can be found at www.sagarpa.gob.mx and Mexico's equivalent of the Secretariat of the Economy can be found at www.se.gob.mx. Author Defined: INTERNAL COMMENT ONLY: On November 20, 2009, lawyers from the Northwest Fruit Exporters (NFE) issued a memo expressing their outrage that they have to submit new data and indicated the SE's actions were contrary to the September 2005 Apple Anti-Dumping Resolution. While this case has had its share of delays, it is common for both countries to request more information and/or delay implementation (Mexican avocado access

to every state in the United States was delayed for nearly 90 years). Sources indicate they believe the GOM has no intention to postpone its decision again.

A final decision should be made by March 1, 2010.

Government report looks at ethanol's use of water

Government report looks at ethanol's use of water

Government report looks at ethanol's use of water

SIOUX FALLS, S.D. — A new government report examining whether increased biofuels use could pinch the nation's water resources says farmers in the Northern Plains use considerably more water to produce a gallon of corn ethanol than growers in other parts of the country.
An ethanol industry group says the report offers little new insight and the vast majority of ethanol is produced from rain-fed corn.The November study from the Government Accountability Office quotes Argonne National Laboratory data saying that farmers in North Dakota, South Dakota, Nebraska and Kansas use, on average, 323.6 gallons of water to produce one gallon of ethanol from corn, with all but 3 of those gallons used for irrigation.
The GAO said that's 20 to 30 times the amount of water used in the U.S. Department of agriculture's two other main corn producing regions, where rainfall is more plentiful.

Go more at the link...

Calif. air pollution board to redo report on truck regulations - Fresno Bee

Calif. air pollution board to redo report on truck regulations - Fresno Bee


SACRAMENTO -- The state's air pollution board voted Wednesday to redo a key report guiding truck regulations that was prepared by a staff member who lied about his credentials.
But the California Air Resources Board stopped short of suspending the rules while the work is repeated -- a move pushed by a Valley member of the board. Dr. John Telles has pressed his case for weeks, criticizing board staff and Chairwoman Mary Nichols for failing to reveal that the lead author of a report on health effects of soot falsely claimed a doctorate in statistics from the University of California at Davis. Hien Tran later confessed that he obtained an online degree from an unaccredited university.
The incident gave momentum to critics of the regulations, including truckers who are pushing for a delay. Nichols and other board members have defended the science behind the report, but agreed to redo it after the pressure mounted.


For more go to link...

DHS Secretary reiterates commitment to immigration reform in 2010- Examiner

DHS Secretary reiterates commitment to immigration reform in 2010

Department of Homeland Security Janet Napolitano testified before the Senate Judiciary Committee Wednesday, and reiterated her comitment to work with Congress to push for comprehensive immigration reform in early 2010.
DHS Secretary updated committee members with her department's progress over this past year and emphasized that immigration enforcement is a necessity, but that enforcement alone is not a solution for a broken immigration system.
"We can no longer perpetuate a status quo that is unacceptable for workers, employers, law enforcement, faith leaders, and America as a whole. We must seize this moment to build a truly effective immigration system that deters illegal immigration, provides effective and enduring enforcement tools, protects workers from exploitation and retaliation, and creates a tough but fair path to legalization for the millions of illegal immigrants already here," Secretary Napolitano said.

For more, go to link....

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Federal Register notice: potato imports

New USDA regulation on potato imports


[Federal Register: December 10, 2009 (Volume 74, Number 236)]
[Rules and Regulations]
[Page 65390-65394]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr10de09-2]

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 948, 953, and 980

[Doc. No. AMS-FV-08-0018; FV08-980-1 FR]


Vegetable Import Regulations; Modification of Potato Import
Regulations

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This rule modifies the import regulations for Irish potatoes
by reducing the number of marketing order areas determined as being in
the most direct competition with imported potatoes from five to three;
exempting U.S. No. 1 grade potatoes imported in certain small
containers from size requirements; and removing certain language from
Marketing Orders No. 948 and 953 that reference the regulation of
imported Irish potatoes. In addition, this rule makes minor
administrative changes to the potato, onion, and tomato import
regulations to update informational references. The modifications to
the import regulations are expected to benefit potato importers and
consumers.

DATES: Effective Date: January 11, 2010.

FOR FURTHER INFORMATION CONTACT: Barry Broadbent or Gary D. Olson,
Northwest Marketing Field Office, Marketing Order Administration
Branch, Fruit and Vegetable Programs, AMS, USDA, 1220 SW. Third Avenue,
Suite 385, Portland, OR 97204; Telephone: (503) 326-2724, Fax: (503)
326-7440, or E-mail: Barry.Broadbent@usda.gov or GaryD.Olson@usda.gov.
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 final rule is issued under section 8e
of the Agricultural Marketing Agreement Act of 1937, as amended (7
U.S.C. 601-674), hereinafter referred to as the ``Act'', which provides
that whenever certain specified commodities, including potatoes
produced in certain areas, are regulated under a Federal marketing
order, imports of that commodity must meet the same or comparable
grade, size, quality, and maturity requirements as those in effect for
the domestically produced commodity. The import regulations for
vegetables issued under section 8e, which cover imports of Irish
potatoes, onions, and tomatoes, are contained in 7 CFR part 980.
This final rule is also issued under Marketing Agreement No. 97 and
Marketing Order No. 948, both as amended (7 CFR part 948), regulating
the handling of Irish potatoes grown in Colorado, and Marketing
Agreement No. 104 and Marketing Order No. 953, both as amended (7 CFR
part 953), regulating the handling of Irish potatoes grown in two
southeastern States (Virginia and North Carolina). Both orders are
effective under the Act.
The Department of Agriculture (USDA) is issuing this rule in
conformance with Executive Order 12866.
This final rule has been reviewed under Executive Order 12988,
Civil Justice Reform. This rule is not intended to have retroactive
effect.
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

[[Page 65391]]

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.
There are no administrative procedures which must be exhausted
prior to any judicial challenge to the provisions of import regulations
issued under section 8e of the Act.
Section 8e provides authority to regulate certain imported
commodities whenever those same commodities are regulated by a domestic
marketing order. Potatoes are one of the commodities specifically
covered by section 8e in the Act. In addition, section 8e provides that
whenever two or more such marketing orders regulating the same
agricultural commodity produced in different areas are concurrently in
effect, imports must comply with the provisions of the order which
regulates the commodity produced in the area with which the imported
commodity is in the ``most direct competition.'' Prior to this rule,
five marketing orders were determined to be in most direct competition
with Irish potato imports, varying by the type of potato and the
shipping season. Section 980.1(a) reflected this determination.
This final rule modifies the Irish potato import regulations by
reducing the number of domestic marketing order areas determined as
being in the most direct competition with imported Irish potatoes from
five to three. This final rule also exempts U.S. No. 1 grade potatoes
that are imported in three-pound or less containers from any concurrent
marketing order size requirements. Additionally, this final rule
removes language contained in Marketing Orders No. 948 and 953 that
becomes obsolete upon the implementation of this rule. Finally, this
rule makes minor changes to update certain informational references
contained in the Irish potato, onion, and tomato import regulations.
Prior to this action, five marketing orders were determined to be
in most direct competition with imported Irish potatoes and acted as
the basis for the establishment of minimum grade, size, quality, and
maturity requirements for imported Irish potatoes, as set forth in the
import regulations issued under section 8e. The marketing order areas
that were previously determined to be in most direct competition were:
Marketing Order No. 946 (Irish Potatoes Grown in Washington) for
imports of red-skinned, round type potatoes during the period July
through September; Marketing Order No. 948 (Area II) for imports of
red-skinned, round type potatoes during the period October through the
following June; Marketing Order No. 953 for imports of round white
potatoes during the period June 5 through July 31; Marketing Order No.
948 (Area III) for imports of all other round type potatoes during the
period August 1 through June 4 of the following year; and Marketing
Order No. 945 for imports of long type potatoes during each month of
the marketing year.
The previous determinations as to the areas in most direct
competition needed to be updated to reflect current production trends.
With this final rule, USDA is reducing the number of marketing orders
determined to be in most direct competition with Irish potato imports
from five to three: One for red-skinned, round type potatoes; one for
all other varieties of round potatoes; and one for long type potatoes.
Consequently, the import regulations for Irish potatoes (7 CFR 980.1)
are revised by determining Marketing Order No. 946 as the production
area in most direct competition with imports of red-skinned, round type
potatoes through the entire year and Marketing Order No. 948 (Area II)
as the production area in most direct competition with imports of all
other round type potatoes through the entire year. Marketing Order No.
945 continues to be the area determined to be in most direct
competition with imports of long type potatoes through the entire year.
Production trends in recent years justify the changes to the
designation of the areas in most direct competition with imported
potatoes. The production area for Irish potatoes grown in Washington,
Marketing Order No. 946, has emerged as the clear domestic shipping
leader for fresh packed red-skinned, round type potatoes, shipping more
than three times the quantity as any other domestic area. Based on
marketing order records for the years 2003-2007, the production area
for Marketing Order No. 946 shipped an average of 1,370,410
hundredweight of red-skinned, round type, fresh packed potatoes. The
next highest marketing order production area was the San Luis Valley of
Colorado, covered by Marketing Order No. 948 (Area II). Based on
marketing order statistics for the 2003-2007 period, the area shipped
an average of 405,083 hundredweight of red-skinned, round type, fresh
packed potatoes. Furthermore, handlers in the Marketing Order No. 946
production area shipped in all 12 months of the year.
The production area for Marketing Order 948 (Area II) does ship a
larger volume of red-skinned, round type, fresh packed potatoes than
Marketing Order 946 for a few months a year during its peak shipping
season, but does not ship near the total quantity or for the length of
time. Marketing Order 946, therefore, is established as the marketing
order area in most direct competition year round due to its dominance
in total shipping volumes and year round availability.
Establishing one marketing order as the area in most direct
competition for red-skinned, round type potatoes more accurately
reflects current production trends and simplifies the process for
importers by having the same regulations established on a year round
basis. As such, USDA has determined that, based on recent shipment
statistics, Marketing Order No. 946 is the area in most direct
competition with imports of red-skinned, round type potatoes for the
entire year.
Likewise, the production area for Irish potatoes grown in the San
Luis Valley of Colorado, Marketing Order No. 948 (Area II), has become
the predominant domestic shipping area of all other round type, fresh
packed potatoes, shipping more than double the quantity as any other
area. Based on marketing order statistics for the years 2003-2007, the
production area for Marketing Order No. 948 (Area II) shipped an annual
average of 1,671,810 hundredweight of all other round type, fresh
packed potatoes. In addition, handlers in Area II shipped all other
round type potatoes in all 12 months of the year. Following Colorado
Area II in the quantity handled of all other round type, fresh potatoes
was the Marketing Order No. 946 production area, where an annual
average of 778,400 hundredweight was shipped during this four year
period.
Prior to this action, USDA had determined that the production areas
for Marketing Orders No. 948 (Area III) and No. 953 were in most direct
competition with imports of all other round type potatoes during
certain periods of the year and were designated as such in the import
regulations. However, these production areas no longer ship fresh Irish
potatoes in quantities that warrant the continuation of such a
designation.

[[Page 65392]]

Marketing order committee statistics show that handlers in the
production area for Marketing Order No. 948 (Area III) shipped an
annual average of 203,115 hundredweight of all other round type, fresh
potatoes for the years 2003-2007, or approximately 12 percent of the
amount shipped by the leading shipping area. Similarly, based on
marketing order committee statistics, handlers in the production area
for Marketing Order No. 953 shipped an annual average of 303,558
hundredweight of all other round type, fresh potatoes during the years
2005-2007, which is approximately 18 percent of the amount shipped by
the leading shipping area.
Marketing Order 946 does ship a large volume of other round type,
fresh packed potatoes during a few months a year during its peak
shipping season. However, Marketing Order 948 (Area II) is established
as the marketing order area in most direct competition with potato
imports year round due to the area's dominance in total yearly shipping
volumes and year round availability. Establishing one marketing order
as the order in most direct competition for other round type potatoes
more accurately reflects current production trends and will simplify
the process for importers by having consistent regulations for those
type potatoes established on a year round basis. Consequently, USDA has
determined that, based on recent shipment statistics, Marketing Order
No. 948 (Area II) is the area in most direct competition with imports
of all other round type potatoes for the entire year.
The production area for Irish potatoes grown in certain designated
counties in Idaho, and Malheur County, Oregon, covered by Marketing
Order No. 945, has been, and is expected to continue to be, the
production and shipping leader for long type potatoes. As such, the
determination of the area in most direct competition with long type
Irish potato imports as currently contained in the import regulations
continues unchanged.
This final rule also exempts U.S. No. 1 grade potatoes of any type
imported in 3 pound or less containers from the size requirements
otherwise specified in the potato import regulations. Marketing Order
No. 946, which covers potato production in the state of Washington,
contains this exemption in its handling regulation. Washington is the
only domestic potato production area to ship U.S. No. 1 grade potatoes
in 3 pound or less containers without regard to size. However, they are
marketed throughout the year. Therefore, the exemption from size
requirements for imported potatoes in 3 pound or less containers is
based upon the regulation established under Marketing Order 946 for the
entire year. This change will allow importers to import potatoes under
comparable regulation.
Additionally, as a result of the changes delineated above, this
final rule removes Sec. Sec. 948.387(h) and 953.322(g) from their
respective marketing orders. These paragraphs, specifically addressing
``Applicability to imports'', are no longer relevant given the changes
in the determination of areas in most direct competition with imported
potatoes.
Marketing Orders No. 948 (Area III) and No. 953 continue to be
viable marketing orders in providing for the orderly marketing of Irish
potatoes in the respective production areas. This action has no direct
bearing on the operation of those programs. The changes in the
determination simply means that those marketing orders will no longer
be used as a basis for establishing Irish potato import requirements
and, as such, any language in those marketing orders that link the
orders to the potato import regulations is obsolete.
Lastly, this rule makes minor changes to certain reference
information included in the import regulations covering potatoes,
onions, and tomatoes that either require updating or have become
obsolete since the subpart was last amended. Specifically, the
designation of governmental inspection services are amended to reflect
agency name changes, references to certain Code of Federal Regulations
citation numbers are updated to acknowledge changes, and other outdated
address information is brought current.
USDA believes that the modifications specified above will
streamline the import regulations that potato importers are subject to.
It is expected that these changes will benefit importers of Irish
potatoes and consumers.

Final Regulatory Flexibility Analysis

Pursuant to the 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 final 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.
Small agricultural producers are defined as those whose annual
receipts are less than $750,000, and small agricultural service firms,
including potato importers, are defined by the Small Business
Administration (13 CFR 121.201) as those having annual receipts of less
than $7,000,000. There are approximately 255 importers of all types of
potatoes who are subject to regulation under the Act. The majority of
potato importers may be classified as small entities.
This final rule modifies the import regulations for Irish potatoes
(7 CFR 980.1) by reducing the number of areas designated as being in
most direct competition with Irish potato imports from five to three to
reflect changes in domestic production trends. This final rule
designates Marketing Order No. 946 as the sole production area in most
direct competition with imports of red-skinned, round type potatoes,
whereas the previous determination was that both Marketing Orders No.
946 and No. 948 (Area II) were the areas in most direct competition
during certain specific periods of the year. This final rule also
designates Marketing Order No. 948 (Area II) as the production area in
most direct competition with imports of all other round type potatoes,
whereas the previous determination was that Marketing Orders No. 948
(Area III) and No. 953 were the areas in most direct competition during
certain specific periods of the year.
Section 8e of the Act provides authority for the regulation of
imported Irish potatoes, whenever similar type potatoes are regulated
by a domestic marketing order. In addition, section 8e provides that
whenever two or more such marketing orders regulating the same
agricultural commodity produced in different areas are concurrently in
effect, imports must comply with the provisions of the marketing order
which regulates the commodity produced in the area with which the
imported commodity is in the ``most direct competition.''
Prior to this action, the Irish potato import regulations required
importers to comply with the grade, size, quality, and maturity
requirements of five marketing orders (Marketing Orders No. 945, No.
946, No. 948 (Area II and Area III), and No. 953) depending on the type
of potato and the time period when shipped. This final rule reduces
that number to three by eliminating Marketing Orders No. 948 (Area III)
and No. 953 from the determinations in Sec. 980.1(a). With this
action, Marketing Order No. 946 is determined as the area

[[Page 65393]]

in most direct competition with imports of red-skinned, round type
potatoes, and Marketing Order No. 948 (Area II) is determined as the
area in most direct competition with imports of all other round type
potatoes. Marketing Order No. 945 continues as the area determined to
be in most direct competition with imports of all long type potatoes.
Designating just three marketing orders as being generally in most
direct competition with imported potatoes of similar type more
accurately reflects current domestic production trends. Statistics from
recent years show that the production area of Marketing Order No. 946
(Irish potatoes grown in Washington) has emerged as the clear leader in
the production of red-skinned, round type potatoes, nearly tripling the
next largest production area (Marketing Order No. 948 (Area II)).
Likewise, the production area of Marketing Order No. 948 (Area II)
(Irish potatoes grown in the San Luis Valley of Colorado) has become
the production leader of all other round type potatoes, producing over
twice the quantity of these type potatoes than the next largest
domestic producing region (Marketing Order No. 946). The production
area for Marketing Order No. 945 (Irish potatoes grown in certain
designated counties in Idaho, and Malheur County, Oregon) continues to
be the production leader of long type potatoes.
This final rule also exempts U.S. No. 1 grade potatoes of any type
imported in 3 pound or less containers from the size requirements
otherwise specified in the potato import regulations. Marketing Order
No. 946, which covers the only domestic potato production area that
ships such potatoes, currently contains this exemption. However, they
are marketed throughout the year. Therefore, the exemption from size
requirements for imported potatoes in 3 pound or less containers should
be based upon the regulation established under Marketing Order No. 946
for the entire year. This change allows importers to import potatoes
under comparable regulation.
Additionally, as a result of the changes to the import regulations
delineated above, this rule removes Sec. Sec. 948.387(h) and
953.322(g) from the respective marketing orders. These paragraphs,
specifically addressing ``Applicability to imports,'' are no longer be
necessary after the determination of areas in most direct competition
with imported potatoes are modified.
Lastly, this final rule makes minor changes to certain
informational references included in the import regulations covering
potatoes, onions, and tomatoes that require updating since the subpart
was last amended. Specifically, the designation of the governmental
inspection service is amended to reflect agency name changes,
references to certain Code of Federal Regulations citation numbers are
updated to acknowledge changes, and outdated address information is
brought current.
In most cases, the changes to the potato import regulations
constitute a relaxation of the regulatory requirements that potato
imports are subject to. In all other cases, this action represents a
continuation of the current regulatory requirements. Therefore, the
changes enacted by this final rule either maintain or reduce the
regulatory burden on potato importers.
Imports of red-skinned, round type potatoes, previously subject to
the requirements of Marketing Orders No. 946 and 948 (Area II), will
now only be subject to the requirements of Marketing Order No. 946. The
minimum size requirements in Marketing Order No. 946 are less
restrictive than the size requirements in Marketing Order No. 948 (Area
II).
Likewise, imports of all other round type potatoes, previously
subject to the requirements of Marketing Orders No. 948 (Area III) and
953, will now only be subject to the requirements of Marketing Order
No. 948 (Area II). The minimum size requirements in Marketing Order No.
948 (Area II) are less restrictive than the requirements of both
Marketing Orders No. 948 (Area III) and 953.
Exempting U.S. No. 1 grade potatoes handled in 3 pound or less
containers from size requirements is also considered a relaxation of
the current regulations.
AMS is committed to complying with the E-Government Act, to promote
the use of the Internet and other information technologies to provide
increased opportunities for citizen access to Government information
and services, and for other purposes.
This final rule will not impose any additional reporting or
recordkeeping requirements on either small or large potato importers.
As with all Federal marketing order programs and corresponding import
regulations, reports and forms are periodically reviewed to reduce
information requirements and duplication by industry and public sector
agencies. In addition, USDA has not identified any relevant Federal
rules that duplicate, overlap, or conflict with this final rule.
A proposed rule concerning this action was published in the Federal
Register on May 29, 2009 (74 FR 25678). The rule was made available
through the Internet by USDA and the Office of the Federal Register. A
60-day comment period ending July 28, 2009, was provided to allow
interested persons to respond to the proposal. No comments were
received. Accordingly, no changes will be made to the rule as proposed.
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/AMSv1.0/
ams.fetchTemplateData.do?template=TemplateN&page=MarketingOrdersSmallBus
inessGuide. Any questions about the compliance guide should be sent to
Jay Guerber at the previously mentioned address in the FOR FURTHER
INFORMATION CONTACT section.
In accordance with section 8e of the Act, the United States Trade
Representative has concurred with the issuance of this final rule.
After consideration of all relevant matter presented, it is hereby
found that this rule, as hereinafter set forth, will tend to effectuate
the declared policy of the Act.

List of Subjects

7 CFR Part 948

Marketing agreements, Potatoes, Reporting and recordkeeping
requirements.

7 CFR Part 953

Marketing agreements, Potatoes, Reporting and recordkeeping
requirements.

7 CFR Part 980

Food grades and standards, Imports, Marketing agreements, Onions,
Potatoes, Tomatoes.


0
For the reasons set forth in the preamble, 7 CFR parts 948, 953, and
980 are amended as follows:
0
1. The authority citation for 7 CFR part 948, 953, and 980 continues to
read as follows:

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

PART 948--IRISH POTATOES GROWN IN COLORADO

0
2. In Sec. 948.387, paragraph (h) is removed.

PART 953--IRISH POTATOES GROWN IN SOUTHEASTERN STATES

0
3. In Sec. 953.322, paragraph (g) is removed.

[[Page 65394]]

PART 980--VEGETABLES; IMPORT REGULATIONS

0
4. In Sec. 980.1, paragraphs (a)(2)(i), (a)(2)(ii), (b)(1), (b)(2),
and (j) are revised to read as follows:


Sec. 980.1 Import regulations; Irish potatoes.

(a) * * *
(2) * * *
(i) Imports of red-skinned, round type potatoes during each month
of the marketing year are in most direct competition with potatoes of
the same type produced in the area covered by Marketing Order No. 946
(part 946 of this chapter).
(ii) Imports of all other round type potatoes during each month of
the marketing year are in most direct competition with potatoes of the
same type produced in Area 2, Colorado (San Luis Valley) covered by
Marketing Order No. 948, as amended (part 948 of this chapter).
* * * * *
(b) * * *
(1) Through the entire year, the grade, size, quality, and maturity
requirements of Marketing Order No. 946, as amended (part 946 of this
chapter), applicable to potatoes of the red-skinned, round type shall
be the respective grade, size, quality, and maturity requirements for
all imported red-skinned, round type potatoes.
(2) Through the entire year, the grade, size, quality, and maturity
requirements of Area II, Colorado (San Luis Valley) covered by
Marketing Order No. 948, as amended (part 948 of this chapter),
applicable to potatoes of the round type, other than red-skinned
varieties, shall be the respective grade, size, quality, and maturity
requirements for imports of all other round type potatoes.
* * * * *
(j) Exemptions. (1) The grade, size, quality and maturity
requirements of this section shall not be applicable to potatoes
imported for canning, freezing, other processing, livestock feed,
charity, or relief, but such potatoes shall be subject to the safeguard
provisions contained in Sec. 980.501. Processing includes canning,
freezing, dehydration, chips, shoestrings, starch and flour. Processing
does not include potatoes that are only peeled, or cooled, sliced,
diced, or treated to prevent oxidation, or made into fresh potato
salad.
(2) There shall be no size requirements for potatoes that are
imported in containers with a net weight of 3 pounds or less, if the
potatoes are otherwise U.S. No. 1 grade or better.

0
5. Amend Sec. 980.117 as follows:
0
a. Revise paragraph (e) to read as set forth below;
0
b. Amend paragraph (f)(2) by removing the reference ``(7 CFR part
2851)'' and by adding in its place the reference ``(7 CFR part 51)'';
and
0
c. Amend paragraph (h), by removing the references ``(7 CFR 2851.3195
through 2851.3209)'', ``(7 CFR 2851.3955 through 2851.3970)'' and ``(7
CFR 2851.3195 through 2851.3209)'' and by adding in their places the
references ``(7 CFR 51.3195 through 51.3209)'', ``(7 CFR 51.3955
through 51.3970)'' and ``(7 CFR 51.3195 through 51.3209)''
respectively.


Sec. 980.117 Import regulations; onions.

* * * * *
(e) Designation of governmental inspection service. The Federal or
Federal-State Inspection Service, Fruit and Vegetable Programs,
Agricultural Marketing Service, U.S. Department of Agriculture and the
Food of Plant Origin Division, Plant Products Directorate, Canadian
Food Inspection Agency, are hereby designated as governmental
inspection services for the purpose of certifying the grade, size,
quality, and maturity of onions that are imported, or to be imported,
into the United States under the provisions of section 8e of the Act.
* * * * *

0
6. Amend Sec. 980.212 as follows:
0
a. Revise paragraph (e) to read as set forth below;
0
b. Amend paragraph (f)(2) by removing the reference ``(7 CFR 2851)''
and by adding in its place the reference ``(7 CFR 51)''; and
0
c. Amend paragraph (h) by removing the words ``(7 CFR 2851.1855 through
2851.1877; title 7, chapter I, part 51 was redesignated title 7,
chapter 28, part 2851 on June 27, 1977)'' and by adding in their place
the words ``(7 CFR 51.1855 through 51.1877).''


Sec. 980.212 Import regulations; tomatoes.

* * * * *
(e) Designation of governmental inspection service. The Federal or
Federal-State Inspection Service, Fruit and Vegetable Programs,
Agricultural Marketing Service, U.S. Department of Agriculture and the
Food of Plant Origin Division, Plant Products Directorate, Canadian
Food Inspection Agency, are hereby designated as governmental
inspection services for the purpose of certifying the grade, size,
quality, and maturity of tomatoes that are imported, or to be imported,
into the United States under the provisions of section 8e of the Act.
* * * * *


Sec. 980.501 [Amended]

0
7. Amend Sec. 980.501 as follows:
0
a. Amend paragraph (a)(4) by removing the words ``Fruit and Vegetable
Division'' in the first and second sentences and by adding in their
places the words ``Fruit and Vegetable Programs''; and
0
b. Amend paragraph (d) by removing the address ``Marketing Order
Administration Branch, USDA, AMS, P.O. Box 96456, Room 2523-S,
Washington, DC 20090-6456, telephone (202) 720-4607'' and by adding in
its place the address ``Marketing Order Administration Branch, Fruit
and Vegetable Programs, AMS, USDA, 1400 Independence Avenue, SW., STOP
0237, Washington, DC 20250-0237, telephone (202) 720-2491.''

Dated: December 1, 2009.
Rayne Pegg,
Administrator, Agricultural Marketing Service.
[FR Doc. E9-29023 Filed 12-9-09; 8:45 am]

BILLING CODE 3410-02-P

Argentina Fresh Deciduous Report Annual - USDA FAS


Argentina Fresh Deciduous Report Annual - USDA FAS


Highlights: Argentina's CY 2010 fresh apple and pear production is expected to decrease due to unfavorable weather conditions, and table grape production is projected to increase due to higher yields. Exports of apples and pears are estimated to remain stable and table grape exports are forecast to increase. Import permit requirements have been affecting fruit exports to Brazil.

Executive Summary: For CY 2010, Post forecasts a decrease in fresh apple production to 800,000 MT due to late frosts and strong winds. Fresh pear production will decrease slightly to 750,000 MT, as unfavorable weather conditions did not affect pear as much as apple plantations. Table grape production is estimated to increase to 140,000 MT as a result of higher yields. Apple and pear exports are forecast to remain stable as local exporters do not expect a significant recovery of export markets, while table grape exports are expected to increase. Import permit requirements have been affecting fruit exports to Brazil.