The USDA Restricts PACA Violators in New York and Utah from Operating in the Produce Industry

Fri. January 17th, 2020
- by Anne Allen     

WASHINGTON, DC - As part of its efforts to enforce the Perishable Agricultural Commodities Act (PACA) and ensure fair trading practices within the U.S. produce industry, the Department of Agriculture (USDA) reported in a press release, that it has imposed sanctions on three produce businesses for failing to meet their contractual obligations to the sellers of produce they purchased and failing to pay reparation awards issued under the PACA.

Direct from the USDA Agricultural Marketing Service:

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. By issuing these penalties, the USDA continues to enforce the prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.

The following businesses and individuals are currently restricted from operating in the produce industry:

  • Brahm Foods Inc., operating out of Maspeth, New York, for failing to pay a $52,701 award in favor of a Florida seller. As of the issuance date of the reparation order, Arrora Vijay was listed as the officer, director and/or major stockholder of the business.
  • 54 ISLIP Food Corp., operating out of Central Islip, New York, for failing to pay a $7,114 award in favor of a New York seller. As of the issuance date of the reparation order, Daniel Taveras and Liz Dionicio, Jr., were listed as the officers, directors and/or major stockholders of the business.
  • D & R Foods LLC, operating out of St. George, Utah, for failing to pay a $47,360 award in favor of a Texas seller. As of the issuance date of the reparation order, Daniel Webster and Roy Cook was listed as a members or managers of the business.

PACA provides an administrative forum to handle disputes involving produce transactions; this may result in the 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. The 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.

The PACA Division, which is in the Fair Trade Practices Program in the Agricultural Marketing Service, regulates fair trading practices of produce businesses that are operating subject to PACA, including buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry.

In the past three years, the 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 the USDA continues to support the fruit and vegetable industry.

To see the full press release directly from the USDA, click here.

USDA's Agricultural Marketing Service