USDA Reports PACA Actions Against Three Produce Businesses

AMS No. 243-09

Nadine Wilkins (202)720-8998Nadine.wilkins@ams.usda.govBilly Cox (202)720-8998Billy.cox@ams.usda.gov

WASHINGTON, Jan. 5, 2010 - The U.S. Department of Agriculture has cited three produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).

These businesses have been barred from operating in the produce industry until their awards are paid. The businesses were served complaints by USDA and were given the opportunity to respond. USDA subsequently ordered payment of the amounts mentioned below.

The businesses are:

--US Best 1, operating in Essex Junction, Vt., for failing to pay a $13,753 award in favor of a California seller. The sole proprietor is Carlos Delgado.

--Jalisco Foods Inc., operating in Springdale, Ark., for failing to pay a $4,620 award in favor of a Texas seller. The officers, directors, and major stockholders are Epigmenia Herrera and Salvador Herrera.

--Marco International Foods LLC, operating in Brooklyn, N.Y., for failing to pay an $8,104 award in favor of a Florida seller. The member is Steven J. Posa.

PACA provides for damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. Interstate produce traders operating as commission merchants, dealers or brokers, and conducting a sufficient volume of business must be USDA-licensed.

USDA is required to suspend the license of a business that fails to pay PACA reparations awarded against it. Individuals, partners, members, officers, directors, or major stockholders associated with these businesses may not be employed by or affiliated with any PACA licensee without USDA-approval.

USDA is an equal opportunity provider, employer and lender. To file a complaint of discrimination, write: USDA, Director, Office of Civil Rights, 1400 Independence Ave., S.W., Washington, D.C. 20250-9410 or call (800) 795-3272(voice), or (202) 720-6382 (TDD).