Loading…

USDA restricts PACA violators in Texas from operating in the produce industry

paca artAs part of its efforts to enforce the Perishable Agricultural Commodities Act and ensure fair trading practices within the U.S. produce industry, the Department of Agriculture has imposed sanctions on three produce businesses for failing to meet their contractual obligations to the sellers of produce they purchased and failing to pay reparation awards issued under the PACA.

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

  • Lonestar Produce Express LLC, operating out of San Antonio, TX, for failing to pay a $48,735 award in favor of a Texas seller. As of the issuance date of the reparation order, Leonidez Fernandez III and Eric Fernandez were listed as members of the business.
  • Luna Wholesale Inc., doing business as Mexluna Produce Stand, operating out of Houston, TX, for failing to pay a $37,404 award in favor of a Texas seller. As of the issuance date of the reparation order, Rodolfo Luna and Teresa Luna were listed as officers, directors and/or major stockholders of the business.
  • AguiGato LLC, operating out of McAllen, TX, for failing to pay a $4,130 award in favor of a Texas seller. As of the issuance date of the reparation order, Erica Aguirre was listed as the sole member and manager 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.

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 USDA. 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.

In the past three years, USDA resolved approximately 3,500 PACA claims involving more than $58 million. PACA staff also assisted more than 7,800 callers with issues valued at approximately $148 million.

tpn daily signup

Index Fresh invites customers to virtual Meeting in the Grove
As businesses and communities cross the six-month mark of working partially or completely from home, creative use of digital communication tools has surged across industries. California-based global avocado marketer Index Fresh has adapted to this model by launching its virtual Meeting in the Grove program to connect its Read More ...
New salad from FiveStar makes debut at Costco
Staying on-trend is one thing, but bringing the freshest seasonal ingredients in a timely manner is another, especially as consumers look for solutions to their “what’s for dinner?” dilemma. FiveStar Gourmet Foods has answered the call with their latest extension to the wildly successful Family Size line of Simply Fresh Salads Read More ...
Kroger announces new SVP of supply chain
The Kroger Co. announced the retirement of Robert Clark, senior vice president of supply chain, manufacturing and enterprise sourcing, after more than 35 years of service, effective Feb. 1, 2021. Clark will be succeeded by Gabriel Arreaga, who is joining The Kroger Co. as senior vice president of supply chain, starting Oct. 1, Read More ...
Progressive Produce brings fresh, nutritious asparagus to dinner tables
With consumers cooking at home more than ever, Progressive Produce is looking forward to working with its partners throughout the supply chain to bring fresh, nutritious asparagus to dinner tables around the country. One of the key things the company plans to do encourage retailers to generate excitement around asparagus on Read More ...
Fox Packaging aquires additional press to increase production
Fox Packaging, an industry leader in flexible packaging innovation, has added an additional UTECO printing press to its dedicated facility. “Expanding our manufacturing capacity is essential to meet growing customer demand and it also presents Fox Packaging with an opportunity to make fast turnaround on large print runs,” said Read More ...
Growers Express names new COO
Growers Express LLC announced that Kirk Wagner is promoted to chief operating officer.    Wagner serves as a member of the executive team, reporting to the board of directors, and working closely with President Tom Byrne and CEO Mark Dendle to set company performance goals, develop and implement strategies, procedures, and Read More ...

Market Watch

the source pro-act

Western growing regions getting hit by rain, cooler temps

floral pulse