USDA Cites Riba Foods Inc. in Texas for PACA Violations

WASHINGTON, DC - The U.S. Department of Agriculture (USDA) has imposed sanctions on Riba Foods, Inc. The company, operating from Texas, failed to make prompt payment to seven produce sellers in the amount of $948,577 for produce that it purchased, received, and accepted in interstate and foreign commerce from October 2022 to May 2023, in violation of the Perishable Agricultural Commodities Act (PACA).

Riba Foods, Inc. has been barred from operating in the produce industry until May 14, 2028, and then only after it applies for and is issued a new PACA license by USDA, and posts a USDA-approved surety bond. The company’s principal, Miguel Barrios, may not be employed by or affiliated with any PACA licensee until May 14, 2027, and then only with the posting of a USDA-approved surety bond.

USDA is required to publish the finding that a business has committed willful, repeated, and flagrant violations of PACA, and impose restrictions on those principals determined to be responsibly connected to the business during the violation period. 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 more information, contact the PACA Investigative Enforcement Branch at (202) 720-6873 or [email protected].