[Federal Register: November 30, 2000 (Volume 65, Number 231)]
[Proposed Rules]
[Page 71272-71273]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30no00-18]
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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.
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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:
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.
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.
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?
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?
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?
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?
Should USDA provide direct analytical detection services
and certification for crops derived from biotechnology? Should the same
be done for other crops?
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?
How should a fee structure be determined for such
services?
Should such involvement be limited to U.S.-produced crops
or expanded to imported crops?
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
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