WASHINGTON, D.C. – The U.S. Department of Agriculture (USDA) has imposed sanctions on four produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).
According to a recent USDA press release, the following businesses and individuals are currently restricted from operating in the produce industry:
- ABI Imports Inc., operating out of Pittsgrove, NJ, for failing to pay a $12,218 award in favor of a Georgia seller. As of the issuance date of the reparation order, Christopher A. Bowe was listed as the officer, director, and major stockholder of the business. Another principal of the business at the time of the order was Karen Bowe and she has challenged her responsibly connected status.
- National Farm Wholesale Fruit & Vegetable Corp., operating out of Bronx, NY, for failing to pay a $27,819 award in favor of a New Jersey seller. As of the issuance date of the reparation order, Farid I. Jaber was listed as the officer, director, and major stockholder of the business.
- Haag Food Service Inc., operating out of Breese, IL, for failing to pay an $86,925 award in favor of an Ohio seller. As of the issuance date of the reparation order, Jack E. Garcia was listed as the officer, director, and major stockholder of the business.
- Alejandro Cartagena, doing business as Cartagena Produce, operating out of McAllen, TX, for failing to pay a $68,250 award in favor of a Texas seller. As of the issuance date of the reparation order, Alejandro Cartagena was listed as the sole proprietor of the business.
PACA provides an administrative forum to handle disputes involving produce transactions; this may result in a reparation order being issued 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.
In the past three years, the USDA resolved approximately 3,700 PACA claims involving more than $66 million. Its experts also assisted more than 7,100 callers with issues valued at approximately $100 million. These are just two examples of how the USDA continues to support the fruit and vegetable industry.
WASHINGTON, D.C. – The U.S. Department of Agriculture (USDA) announced that Hart Produce Co. Inc. satisfied a reparation order issued under the Perishable Agricultural Commodities Act (PACA).
The Hart, MI, company has met its obligations and is now free to operate in the produce industry, according to a USDA press release. Jerry A. Brandel was listed as the officer, director, and major stockholder of the business and may now be employed by or affiliated with any PACA licensee.
Once a reparation order is fully satisfied and it is confirmed that there are not any outstanding unpaid awards, the USDA lifts the employment restrictions of the previously named, responsibly connected individuals. The USDA will only reinstate the license of a business to an active status if all reparation awards are satisfied and if the license is not terminated.
In the past three years, the USDA resolved approximately 3,700 PACA claims involving more than $66 million. Its experts also assisted more than 7,100 callers with issues valued at approximately $100 million. These are just two examples of how the USDA continues to support the fruit and vegetable industry.
WAPAKONETA, OH – Opening in a strategic location off of a major interstate, Red Sun Farms has announced that its second U.S.-based greenhouse operation will break ground next week.
“We are incredibly excited to expand our USA Grown footprint with the announcement of our second US-based farm operation,” said Paul J. Mastronardi in a press release. Mastronardi is Co-Owner of the project, and son to company Owner, Jamie Mastronardi. “State and local government officials have been phenomenal to partner with as we look forward to many years of future growth in Ohio.”
The company said that the new greenhouse, situated a few hundred yards from the busy I-75 interstate on 20 acres of land, will provide fresh greenhouse produce for almost 60 percent of the U.S. population within a 10-hour transport radius.
Phase 1 of the greenhouse’s development will consist of a state-of-the-art production area, and a 26,000-sq.-ft. distribution center.
“In addition to cutting-edge technology, phase 1 will employ the use of high pressure sodium lighting to provide our retail partners and consumers with fresh, local, greenhouse produce, even during the cold winter months in Ohio,” said Co-Owner and Master Grower, Louis Chibante.
The company’s future plans and phases for the greenhouse, mark the operation with the potential to span over 200 acres within the next 7-10 years. The greenhouse could also create upwards of 400 jobs for the area.
AndNowUKnow will continue to have the lastest in new facility constructions and growth expansions within the industry.
YAKIMA, WA – The apple buds are blooming in eastern Washington, and as Dave Gleason recently told Domex Superfresh Growers, quality and progression of the season is looking great.
“Things are developing really well,” said Gleason, Chief Horticulturist of Kershaw Companies, in an exclusive video for Domex. “We are at the point where you can see lots of apples, lots of fruits on the trees.”
What can consumers attribute this bountiful blossoming to? Good Washington weather, said Gleason, with warm temperatures and no frost.
However, with the ample amount of flowers on the trees, Gleason disclosed that growers’ main focus right now is trimming down the buds to increase the end quality and size of the crop.
“A tree will bloom way more flowers than it can handle if they all become apples,” explained Gleason. “In fact, if we can get rid of 99 percent of the fruit potential on a tree it only takes one percent to give us a full crop of the total flowers that a tree will produce.”
To find out the reasoning and strategies utilized by Washington growers as they cut down on blossoms, and prepare to nurture the buds to full-grown juicy apples, watch the above video!
GREENSBORO, NC - In one swift movement, The Fresh Market has announced the closure of 13 stores resulting in a complete exit from four states.
“The decision to close these stores is a difficult but necessary step with the end goal of producing a stronger, more agile company,” CEO of The Fresh Market, Rick Anicetti, said in a statement, according to the Dallas Morning News. “This shift also allows us to focus our energy and resources on the growth of our remaining stores, as well as new stores we have planned in the future.”
The closures include all eight of its locations in Texas, as well as its two Kansas locations, both Iowa stores, and only Missouri store.
Stores were closed down yesterday, May 3rd, when the retailer informed employees of the move, according to Dallas Morning News, and reopened today with prices slashed on grocery items.
In a letter to employees, Senior Vice President Karen Stout wrote that the doors to the announced locations will close permanently on May 18th. Workers affected will be paid for 30 days past that closing date.
It has only been two months since The Fresh Market exited California, which it announced shortly before agreeing to be acquired by the Apollo Global for approximately $1.36 billion. The retailer did not, however, release any information that the purchase is involved with the closures.
As retailers continue to make strategic moves in the market, AndNowUKnow will continue to report on any details that could influence the produce industry.
CALIFORNIA & MEXICO - The Californian and Mexican grape seasons have kicked off, and suppliers are saying that they are looking at a strong start.
Castle Rock’s Sales Manager, Laura Berryessa, tells me that the company is seeing good quality and supplies, with the Coachella Flame harvest beginning at the end of May.
“We had good weather in February and expect very good quality,” Laura tells me. “We are expected to start around May 28th to June 1st on Flames, with Sugar Ones, Summer Royals, and Sweet Celebration beginning out of our Coachella Ranch about a week later.”
Laura adds that Castle Rock will start transitioning to the San Joaquin Valley for Flames the last week of June. “Volumes look good in Coachella and the San Joaquin Valley, with supplies carrying us through the first of July.”
Anthony Vineyards agrees that the season looks to kick off with good momentum.
“We are looking forward to an active start to the California grape deal,” Rob Spinelli, Sales for Anthony Vineyards shares with me. “We have some decent volumes coming out of Coachella Valley, with quality looking really good.”
This first week of May kicks off the company’s conventional grapes with Sugraone and Flame varieties, with organic grape offerings starting a few days later, and everything in full swing by mid-month. And the grapes will be meeting good demand, Rob says, with a slight tightening of Chilean grapes in the market.
“Chilean green grapes have been a bit tight due to some weather problems in Chile, and Crimsons have been a bit lighter than usual,” Rob explains. The result is a boost in demand, and Rob tells me that the transition from Chile to the Golden State of California and Mexico will be a seamless one.
He is also happy to report that the recent hail and rain around California did not set back the company’s schedule. “While there was some wind in Coachella, we didn’t see any major damage. Bakersfield experienced some rain and hail, but it was mostly in the North away from our grapes.”
Sun World, who is starting Perlettes and Flames the first week of May in Mexico, followed by Sugraone SUPERIOR SEEDLESS® and Summer Royal the following week, says this season will mark the first significant volume from Guaymas, and could bring earlier volumes on Summer Royal and other varieties.
“The industry is targeting its start for the week of May 9th, and volume will pick up the following week for Sugraone, SUPERIOR SEEDLESS, and Flames,” Jason Fuller, Sales Manager at Sun World explains. “MIDNIGHT BEAUTY® will start the last week of May, and the first crop of the tropical and muscat flavored SABLE SEEDLESS® out of the early Coachella region will be available first week in June.”
Weather has cooled off dramatically in both Mexico and Coachella, the company says, helping give Sun World’s grapes their signature bright coloring, and grape quality out of both regions is looking excellent. There are some indicators of a lighter Sugraone crop out of Hermosillo, Jason tells me, but the industry is continuing to monitor conditions.
Jason says this is a season of new launches and a focus on organics for the company as well. “New this season, Sun World will market organic MIDNIGHT BEAUTY® brand black grapes out of Mexico, available the second week of May. This is part of a broader effort to help meet retailer demand for organics, as the company is also undergoing certification for an expanded organics program out of California.”
As more details emerge on the developing Californian and Mexican grape seasons, check back in with AndNowUKnow for the details.
Castle Rock Vineyards Anthony Vineyards Sun World International
STOCKTON, CA - With the California cherry season having kicked off last week, Unitec’s Cherry Vision 2 is helping to ensure quality output despite adverse weather.
"The precision in the selection of defects has reached percentages of reliability that exceed any expectation," Mike Chinchiolo of Chinchiolo Stemilt California, one of the packers that have chosen Unitec’s Cherry Vision 2 technology, said of the innovative system, according to a press release.
Developed by Unitec, Cherry Vision 2 was developed to detect the internal and external quality of cherries non-destructively. The technology equips all 40 sizing lines of Chinchiolo Stemilt California warehouse in Stockton, CA, providing the company with a reliable selection of defects.
According to Unitec, the technology combines the following for cherry packers:
- A user-friendly interface
- Respect to the characteristics of the fruit
- Very high efficiency levels
Unitec looks to offer technology that improves fruit and vegetables manufacturing and packing processes from hardware to software, design to mechanics, through the realization of automation parts.
An international company that operates out of Italy to reach more than 50 countries, in which it reports it has 95 percent of its turnover, Unitec specializes in the design and manufacturing of innovative technologies for processing, sorting, quality selection, and packaging of over 35 kinds of fresh fruit and vegetables.
CALIFORNIA - Earlier this week the California Berry Cultivars, LLC (CBC) filed suit against the Regents of the University of California, claiming the body has breached its contract.
Filed on May 2, the grievance “represents the frustration of CBC members after more than three years of unsuccessful discussions and negotiations revolving around the systematic demise of the world famous UC Davis strawberry-breeding program,” according to a press release.
Specifically, the claim lists the following against UC Davis:
- Breach of contract
- Conversion
- Breach of fiduciary duty
- Breach of the implied covenant of good faith and fair dealing
- Unfair competition
According to the release, two of the CBC's celebrated members and former UC strawberry breeders, Drs. Doug Shaw and Kirk Larson, helped the program and the state of California maintain prominence with the invention of successful, publically available breeds of strawberry varieties for over three decades.
Now the claimant said its members hope to discover why UC Davis administrators have denied the breeders rights and access to their own inventions of strawberry plant breeding material through the lawsuit.
“For over three years, CBC has worked to re-invigorate the stalled strawberry-breeding program through efforts to obtain non-exclusive access to the core strawberry materials created by Drs. Shaw and Larson and now held by the UC,” the cultivar stated, claiming that the UC has mismanaged a successful public-private partnership. “The failure of UC Davis to establish a succession plan and the lack of continuity is creating hardships for all growers large and small who depend on improved strawberry varieties for their livelihoods.”
For what it says has damaged the commercial viability of its members, as well as the California strawberry industry, the CBC is reportedly seeking both equitable and monetary relief for past, current, and future injuries caused by these actions.
AndNowUKnow will keep you up to date on this story as it continues to develop.
CAMBRIDGE, UK – To bolster its UK and global supply chain software operations, LINKFRESH has found a new CEO in tech veteran, Andy Makeham.
“LINKFRESH is a great company with a great product, staff and customers,” said Makeham in a press release. “I have competed with them in the past, and they were always tough to beat, so when the CEO opportunity arose, I didn’t have to think twice.”
Makeham brings over 40 years of software business experience to the LINKFRESH team and his U.K. and globally-minded appointment. In addition to founding and developing several tech businesses, like Sheffield Micro and BEC Group, Makeham has also held several senior IT positions at sector companies such as Advanced Computer Software Group plc, and Kewill Systems plc.
Makeham most recently acted as Founder and CEO of K3 Business Technology Group PLC. As CEO of K3, Makeham grew company sales to £70 million (approximately $102 million) with an operating profit of £10 million (about $15 million).
Makeham said that he is looking forward to growing business for LINKFRESH in his new role, as well. “With the fresh food market expanding rapidly, and the U.K. economy recovering, I am looking forward to spearheading LINKFRESH’s U.K. and global business, working with our fresh food customers to deliver the innovative and relevant software that is increasingly essential as the food industry raises the bar on traceability and transparency,” concluded Makeham.
LINKFRESH said that it plans to continue expanding and hiring in both the U.K. and the U.S.
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SAN ANTONIO, TX - H-E-B is on another land grab, adding two new parcels of land to its North Texas real estate holdings.
With these two new additions in Tarrant County, H-E-B has now purchased 20 pieces of land in the counties of Dallas, Collin, and Tarrant.
According to the Fort Worth Star-Telegram, the company bought a 17.8-acre tract in the Glade Parks development of Euless, TX, and an 18.2-acre parcel in north Fort Worth.
These land purchases have piqued the interest of many who believe this may signal a possible expansion in the North Texas market. Just last month, H-E-B hired the CEO of the North Texas Commission, Marbrie Jackson, to head the company’s public affairs and community outreach in North Texas.
H-E-B’s Director of Public Affairs, Leslie Sweet, told the Dallas Morning News that Jackson’s hiring does not necessarily mean any new moves are being made.
“[Jackson’s hiring] does not signal a market entry for the company,” she explained, but is more about customer relations and philanthropy efforts. “While there are no specific plans for expansion into the Dallas Fort-Worth market at this time, H-E-B continues to evaluate opportunities to serve customers across Texas.”
Sweet added that H-E-B is continuing its focus on the Central Market brand.
AndNowUKnow will continue to follow H-E-B’s regional growth, so stay tuned for details!