The U.S. Department of Agriculture (USDA) has filed an administrative complaint against Fresh Florida Products Inc. for alleged violations of the Perishable Agricultural Commodities Act (PACA). The company, operating from Florida, allegedly failed to make payment promptly to eight produce sellers in the amount of $390,603 from May 2021 through February 2022.
Fresh Florida Products Inc. will have an opportunity to request a hearing. Should USDA find that the company committed repeated and flagrant violations, it would be barred from the produce industry as a licensee for three years, or two years with the posting of a USDA-approved surety bond. Furthermore, its principals could not be employed by or affiliated with any PACA licensee for two years, or one year with the posting of a USDA-approved surety bond.
USDA has also imposed sanctions on two produce businesses for failing to meet contractual obligations to the sellers of produce they purchased and failing to pay reparation awards issued under PACA. 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.
The following businesses and individuals are currently restricted from operating in the produce industry:
- Igo Fresh Produce LLC, operating out of McAllen, Texas, for failing to pay an $11,857 award in favor of a Texas seller. As of the issuance date of the reparation order, Oscar Manuel Corral Vega, Juan Enrique Gonzalez Gutierrez and Liliana Rios Saenz were listed as managers and members of the business.
- Portales Produce LLC, operating out of McAllen, Texas, for failing to pay a $5,070 award in favor of an Ohio seller. As of the issuance date of the reparation order, Gabriela Arechandieta Reyna and Jose L. Arechandieta were listed as members 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.
Click here for an overview of companies that previously violated PACA.
For more information:
Corey Elliott
PACA
Tel: +1 (202) 720-6873
PACAInvestigations@usda.gov
Dispute Resolution Branch
Tel: +1 (202) 720-2890
PACAdispute@usda.gov
www.ams.usda.gov