WASHINGTON, DC - Several companies in the fresh produce industry recently had sanctions imposed on them by the U.S. Department of Agriculture (USDA) under the Perishable Agricultural Commodities Act (PACA). The four companies were sanctioned for allegedly failing to meet contractual obligations to the sellers of produce they purchased and failing to pay reparation awards totaling $113,870.

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:

• JB Produce, operating out of Denver, Colorado, for failing to pay a $16,999 award in favor of a California seller. As of the issuance date of the reparation order, Daniel Perez-Perez was listed as the member and/or major stockholder of the business

• UMV Foods Corporation, operating out of Doral, Florida, for failing to pay a $17,215 award in favor of a New Jersey seller. As of the issuance date of the reparation order, Damian Vega was listed as the officer, director, and major stockholder of the business

• Fong Shing International Corp., operating out of Maspeth, New York, for failing to pay a $53,540 award in favor of a Texas seller. As of the issuance date of the reparation order, Minh Thai was listed as the officer, director, and major stockholder of the business

• Mercatropic Corp., operating out of Mission, Texas, for failing to pay a $26,116 award in favor of a Florida seller. As of the issuance date of the reparation order, Roberto De La Torre 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 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