WASHINGTON, DC - Several companies in the fresh produce industry recently had sanctions imposed on them by the United States Department of Agriculture (USDA) under the Perishable Agricultural Commodities Act (PACA). The five companies were sanctioned for allegedly failing to meet contractual obligations to the sellers of produce they purchased and failing to pay reparation awards totaling $111,098.

These 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:

• Havmore Food Products, operating out of Garden Grove, California, for failing to pay a $17,416 award in favor of an Arizona seller. As of the issuance date of the reparation order, Syed A. Hussain was listed as the officer, director, and major stockholder of the business
• Tyler’s Pride Produce, operating out of Kenner, Louisiana, for failing to pay an $8,110 award in favor of a Texas seller. As of the issuance date of the reparation order, Tammy P. St. Philip and Charles R. St. Philip, Jr., were listed as members of the business
• Amcan Produce, operating out of Troy, Michigan, for failing to pay a $25,995 award in favor of an Ohio seller. As of the issuance date of the reparation order, Tayssir Baydoun was listed as a member of the business
• Crazy Avocados Produce, operating out of McAllen, Texas, for failing to pay a $23,000 award in favor of a Texas seller. As of the issuance date of the reparation order, Luis A. Valencia Villa was listed as a member of the business
• Grupo San Gabriel, operating out of McAllen, Texas, for failing to pay a $36,577 award in favor of a Texas seller. As of the issuance date of the reparation order, Rolando Olivares Ahumada was listed as a manager and member 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.

For contact information, and to read the release in full, click here.

USDA Agricultural Marketing Service