WASHINGTON, D.C. - The USDA has cited Allens Inc., also known as Veg Liquidation Inc., for failure to pay for nearly $10 million worth of produce under PACA.
According to a USDA press release, the Siloam Springs, AR-based company failed to pay $9,759,843 to 40 produce sellers for 2,312 lots of produce, a violation of PACA. As a result of these actions, Allens Inc. cannot operate in the produce industry until December 2, 2017, at which time it may apply for a PACA license, the USDA says.
The company’s principals, have challenged their responsibly connected status.
The Agricultural Marketing Service (AMS), PACA Division, regulates fair trading practices of produce businesses operating subject to PACA, which includes buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry. All oversight of actions related to PACA are conducted by AMS, an agency within USDA.
In the past three years, USDA resolved approximately 3,700 PACA claims involving more than $66 million. USDA experts also assisted more than 7,100 callers with issues valued at approximately $100 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.
