USDA Restricts PACA Violators in California and Texas from Operating in the Produce Industry

Thu. August 1st, 2019
- by Melissa De Leon     

WASHINGTON, DC - This week, the U.S. Department of Agriculture (USDA) announced that it has imposed sanctions on three produce businesses as part of the Perishabel Agricultural Commodities Act (PACA). Each company failed to meet their contractual obligations to the sellers of produce they purchased product from, as well as failed to pay reparation awards issued under PACA. As a result, the below listed companies have had their PACA licenses suspended and are now barred from engaging in PACA-licensed business without approval from the USDA, according to a press release.

Direct from the USDA Agricultural Marketing Service:

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

  • Golden Rule Produce Inc., operating out of Morgan Hill, California, for failing to pay a $24,245 award in favor of an Arizona seller. As of the issuance date of the reparation order, Dimitrios Tsigaris was listed as the officer, director and/or major stockholder of the business.
  • Alberto Cantu, Jr., doing business as Veggie Co., operating out of Mission, Texas, for failing to pay a $23,086 award in favor of an Arkansas seller. As of the issuance date of the reparation order, Alberto Cantu, Jr. was listed as the sole proprietor of the business.
  • Martinez Fresh Produce LLC, operating out of Dallas, Texas, for failing to pay a $9,760 award in favor of a Texas seller. As of the issuance date of the reparation order, Arturo Martinez Isguerra was listed as a manager/member of the businesses.

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 PACAreparations 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, USDA resolved approximately 3,350 PACA claims involving more than $63 million. PACA staff also assisted more than 8,000 callers with issues valued at approximately $156 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.

For further information, contacts, and to read the press release in its entirety, please check out the link here.

USDA's Agricultural Marketing Service