WASHINGTON, DC - The United States Department of Agriculture (USDA) recently announced it has imposed sanctions on two produce businesses in Georgia. The companies were sanctioned for failing to meet contractual obligations to the sellers of produce they purchased and failing to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).

Sanctions include suspending the businesses’ PACA licenses and barring the principal operators of the businesses from engaging in PACA-licensed business or other activities without approval from USDA.

Direct from the USDA Agricultural Marketing Service: 

The following businesses and individuals are currently restricted from operating in the produce industry:

• South Side Fresh Produce, operating out of Forest Park, Georgia, for failing to pay a $6,800 award in favor of a Minnesota seller. As of the issuance date of the reparation order, Pedro Consuelo Salinas and Pascual Avitia, Sr., were listed as members of the business
• All Fresh Farms, operating out of Tifton, Georgia, for failing to pay a $43,070 award in favor of an Arizona seller. As of the issuance date of the reparation order, Bobby J. Pettiford was listed as the member and manager of the business

PACA provides an administrative forum to handle disputes involving produce transactions; this may result in USDA’s issuance of a reparation order that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. USDA is required to suspend the license or impose sanctions on an unlicensed business that fails to pay PACA reparations awarded against it, as well as impose restrictions against those principals determined to be responsibly connected to the business when the order is issued. Those individuals, including sole proprietors, partners, members, managers, officers, directors, or major stockholders, may not be employed by or affiliated with any PACA licensee without USDA approval.

By issuing these penalties, USDA continues to enforce the prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.

To read the release in its entirety, click here.