WASHINGTON, DC - The U.S. Department of Agriculture (USDA) has imposed sanctions on four produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).

According to a press release, the following businesses and individuals are currently restricted from operating in the produce industry:

• Sarita Ranch Provission Inc., operating out of Los Angeles, California, for failing to pay a $101,327 award in favor of an Idaho seller. As of the issuance date of the reparation order, Miguel S. Ortega was listed as the officer, director, and major stockholder of the business.
• Appleseed Organic Produce LLC, operating out of Richmond, California, for failing to pay a $14,595 award in favor of a Washington seller. As of the issuance date of the reparation order, Brett Cummins was listed as a member of the business.
• Valley Produce Corp, operating out of Jonesboro, Georgia, for failing to pay a $65,340 award in favor of a Texas seller. As of the issuance date of the reparation order, Mario A. Lazo was listed as the officer, director, and major stockholder of the business.
• Huntington Products Inc., operating out of Raleigh, North Carolina, for failing to pay a $2,174 award in favor of a Texas seller. As of the issuance date of the reparation order, Bryan Flores was listed as the officer, director, and major stockholder of the business.

PACA provides an administrative forum to handle disputes involving produce transactions; this may result in a reparation order being issued 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.

The PACA Division, which is in the Fair Trade Practices Program in the Agricultural Marketing Service, regulates fair trading practices of produce businesses that are operating subject to PACA including buyers, sellers, commission merchants, dealers and brokers within the fruit and vegetable industry.

In the past three years, USDA resolved approximately 3,500 PACA claims involving more than $58 million. PACA staff also assisted more than 8,000 callers with issues valued at approximately $140 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.

USDA Agricultural Marketing Service