Nadine Wilkins (202)720-8998Nadine.wilkins@ams.usda.gov
WASHINGTON, Dec. 23, 2010 – The U.S. Department of Agriculture (USDA) has cited SK Foods L.P. (SK) of Lemoore, Calif., for failure to make full payment promptly to 12 sellers totaling $594,705.96 for 46 lots of produce. This is in violation of the Perishable Agricultural Commodities Act (PACA).
As a result of these actions, the USDA and SK have entered into a consent decision and SK cannot operate in the produce industry until Dec, 8, 2012, at which time it may reapply for a PACA license.
Two of the company’s principals, Frederick S. Salyer and Mark McCormick, may not be employed by, or affiliated with, any PACA licensee until Dec. 8, 2011, and then only with the posting of a USDA-approved surety bond.
Under PACA provisions, individuals held responsibly connected to PACA violations including sole proprietors, partners, members, officers, directors, and stockholders may not be employed by or affiliated with any PACA licensee without USDA-approval.
The PACA Branch, which is part of the USDA’s Agricultural Marketing Service (AMS), regulates fair trading practices of produce companies operating subject to the PACA, which includes buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry. The USDA is authorized to suspend or revoke a company’s license for violations of the PACA. All oversight of actions related to the PACA are conducted by the AMS.
In fiscal year 2010, USDA resolved approximately 2,000 claims totaling $30 million under the PACA as a result of their continued efforts to serve and protect the fruit and vegetable industry from unlawful trade practices.
For further information contact Phyllis Hall, Director, Trade Practices Section, at (202) 720-6873, by fax at (202) 720-8868, or by email at TradePracticesSection@ams.usda.gov.
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