USDA Restricts PACA Violator in Texas from Operating in the Produce Industry

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Fri. January 17th, 2020
- by Melissa De Leon Chavez     

WASHINGTON, DC - The USDA has filed an administrative complaint against Mido Fresh Foods as part of its efforts to enforce the PACA and ensure fair trading practices within the U.S. produce industry. The company, operating from Texas, allegedly failed to make payment to 14 produce sellers in the amount of $1,861,502 from May 2018 through June 2019.

Direct from the USDA Agricultural Marketing Service:

Mibo Fresh Foods LLC 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.

The PACA Division, which is a part of AMS’ Fair Trade Practices Program, regulates fair trading practices of produce businesses that are operating subject to the 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 7,800 callers with issues valued at approximately $148 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.

For further information, contacts, and to read the press release in its entirety, please click the link here.

USDA's Agricultural Marketing Service