WASHINGTON, DC - Sanctions have been imposed on three produce businesses in Florida, Georgia, and Texas for failing to meet contractual obligations to the sellers of produce they purchased. According to the USDA, they also failed to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA). Collectively, the businesses failed to pay a total of $60,573.
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 the USDA.
Direct from the USDA Agricultural Marketing Service:
The following businesses and individuals are currently restricted from operating in the produce industry:
- Rooted Connections, operating out of Ft. Lauderdale, Florida, for failing to pay a $12,654 award in favor of a Texas seller. As of the issuance date of the reparation order, Nitzelle Coenen was listed as the member of the business
- Trinity Vegetable Company, operating out of Elberton, Georgia, for failing to pay a $34,873 award in favor of a Georgia seller. As of the issuance date of the reparation order, Joseph N. Haynes II was listed as the member of the business
- Efruit Fresh Produce operating out of Laredo, Texas, for failing to pay a $13,046 award in favor of a California seller. As of the issuance date of the reparation order, Eduardo Vaca Villanueva and Carlos Vaca Villanueva were listed as the 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.
To read the release in its entirety, click here.
