WASHINGTON, DC - The United States Department of Agriculture (USDA) recently announced it has imposed sanctions on four produce businesses in California, Minnesota, and Texas for failing to meet contractual obligations to sellers of produce they purchased and failing to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA). Combined, the companies allegedly failed to pay sellers $72,277.

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

Direct from the USDA Agricultural Marketing Service:

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

• Fresh Life Co., operating out of Moreno Valley, California, for failing to pay a $15,780 award in favor of a California seller. As of the issuance date of the reparation order, Gabriel Gomez and Rose Mata were listed as the officers, directors, and/or major stockholders of the business

• Dukarani Food Processing, operating out of Minneapolis, Minnesota, for failing to pay an $11,040 award in favor of an Illinois seller. As of the issuance date of the reparation order, Fomba S. Konjan and Mohammed Dukuly were listed as the officers, directors, and/or major stockholders of the business

• New Start Produce Group, operating out of Dallas, Texas, for failing to pay a $33,214 award in favor of a Texas seller. As of the issuance date of the reparation order, Carlos Chavez and Ruben Ayala were listed as the members of the business

• Nationwide Foods, operating out of Grand Prairie, Texas, for failing to pay a $12,243 award in favor of a Texas seller. As of the issuance date of the reparation order, Rosario Lanao was listed as the 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.

USDA Agricultural Marketing Service