USDA reopening comment period for proposed termination of the South Texas onion marketing order

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The South Texas Onion Marketing Order isn’t dead yet.

The U.S. Department of Agriculture on Nov. 8 announced the reopening of the comment period on a proposal to terminate the marketing order regulating the handling of onions grown in south Texas.

The reopened comment period will close on Dec. 8.

The proposed rule to terminate the marketing order was published in the Federal Register on Aug. 5, and the initial comment period closed on October 4.

The proposed rule drew nearly 100 comments from the industry by Oct. 4.  Some comments supporting continuance of the marketing order said the COVID-19 pandemic had an impact on referendum participation by growers.

In a comment to the USDA, the Washington Potato & Onion Association said the proposed rule “has and will have tremendous, detrimental effect on onion family farms in our region and across the U.S. if Section 8(e) protections are removed because of this action.”

“The removal of Order 959 (South Texas onion marketing order), even though it is only three months (March through June), would place independent farm families in our region at a severe competitive disadvantage from imports from foreign producers and SOE’s from onions entering the U.S. without regulation and inspection,” the group said. “Lower quality, uninspected onions that do not meet U.S. Grade quality standards, could contain diseases and pests that will disrupt our growing capacity and ability to export. We know it’s not the intent for USDA to introduce quarantined pests, but without the current checks and balances of mandatory grade and inspection of foreign onions, our lands become a target for irrevocable damage.”

The group said that “allowing foreign produce to be sold into our country without the same regulation and expectation would absolutely be unethical and detrimental to all stakeholders of onions in the United States.”

“The WPOA strongly encourages USDA to ensure fair practice and competition continue by reinstating the South Texas Onion Marketing Order 959, if no other similar protections can be granted.”

J. Allen Carnes, chairman of the Texas Vegetable Association and owner of Winter Garden Produce, said in a comment to USDA that the marketing order has also been critical in providing promotion to growers and shippers that otherwise lack the resources to perform promotional activities.

“Of the 22 registered handlers in the South Texas Onion Committee (STOC), only a handful have any marketing,” he said. 

“This order gives those growers a better opportunity to see higher returns because the STOC is running highly targeted consumer-focused and buyer-focused campaigns to promote all of Texas onions – especially the Texas 1015 Sweet onion,” he said. 

“Without the order, these growers would have no marketing and promotion of this commodity would lie solely with their handler, rather than the community of growers.”

However, the Fresh Produce Association of the Americas said in a comment to the USDA that the group supports termination of the order under the proposed rule. Further, the FPAA thinks that regulations impacting imported onions should also be terminated as outlined under Section 8(e) of the Act.

“The outcome of the mandatory continuance referendum shows a lack of interest in continuation of the order by the domestic industry,” said Lance Jungmeyer, president of the FPAA. 

“Contemplation of continuing an order that is unsupported by the domestic industry and that goes against the referendum regulations outlined in the order would undermine the integrity of the process and industry oversight of self-initiated marketing orders.”

Jungmeyer said companies that sell onions still have options for controlling quality, including shipping point and destination inspections of onions. 

“Additionally, many retail and foodservice buyers have quality standards they require of their suppliers,” he said. 

“These standards are designed to meet their specific consumers’ demands. These requirements often exceed existing requirements in a marketing order or more specifically target preferences that may change based on region, type of customer, and more.”

Overtime

During the initial comment period, the USDA also received a request to extend the comment period for an additional 30 days to allow those affected by the rulemaking to weigh in on the proposed termination of the program.

The marketing order was established in 1961 and authorizes the South Texas Onion Committee to conduct research and promotion initiatives, establish minimum quality requirements under USDA’s oversight and requires a continuance referendum every six years to determine producers’ level of support for the program, according to a news release.

Interested parties can post comments concerning the proposed termination at www.regulations.gov or email them to MarketingOrderComment@usda.gov, the USDA said. All comments submitted by the deadline will be made available for public review and will be considered before a final determination is made. 
 

 

 

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