WASHINGTON, DC - The United States Department of Agriculture (USDA) has imposed sanctions on four produce businesses for failing to meet contractual obligations to the sellers of produce they purchased and failing to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA). 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:

• Golden Hills Foods Corp., operating out of Bogalusa, Louisiana, for failing to pay a $22,584 award in favor of an Arizona seller. As of the issuance date of the reparation order, Veronica Perez was listed as the sole officer, director, and stockholder of the business
• Assured Edge Solutions, operating out of Geneva, New York, for failing to pay a $22,904 award in favor of a Maryland seller. As of the issuance date of the reparation order, Daniel Rao was listed as the sole member of the business
• Jack Humphreys doing business as Zia Onion Sales, operating out of Desoto, Texas, for failing to pay a $8,457 award in favor of a Texas seller. As of the issuance date of the reparation order, Jack Humphreys was listed as the sole proprietor of the business
• Fresh Central Trading, operating out of Pharr, Texas, for failing to pay a $4,268 award in favor of a Pennsylvania seller. As of the issuance date of the reparation order, Edgar Garcia Lanuza was listed as the sole 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.

For contact information and to read the release in its entirety, click here.

BENTONVILLE, AR - Walmart is enacting some tactical changes across its supply chain operations, recently unveiling plans to merge its Sam’s Club banner corporate supply chain with Walmart’s internal supply chain.

“This is a big step in our growth journey, bringing together a supply chain that is future-ready to serve both Sam’s Club and Walmart for the long term,” said David Guggina, Head of Supply Chain Operations at Walmart, noting that the integration would support the long-term growth of both outfits. “The collaboration is expected to streamline operations and accelerate growth by leveraging Walmart’s expansive enterprise systems and infrastructure.”

As news source Talk Business & Politics reported, Walmart has had success merging operations within its business unit, as Walmart U.S. CEO John Furner consolidated digital and in-store buying employees into one merchandising unit on the heels of several other operational shifts aimed at uniting the supply chain in 2020.

Both businesses have also invested heavily in technology with the goal of boosting efficiency and establishing a more modernized supply chain through AI-powered applications and robotics.

The news of this operational merger comes as Sam’s Club initiates a plan to open 30 new stores over the next four to six years. No job cuts are anticipated with the transition, according to Sam’s Club.

ANUK will keep an eye out for more updates on this strategy and bring the latest insights straight to your inbox.