Nadine Wilkins (202)720-8998Nadine.wilkins@ams.usda.govBilly Cox (202)720-8998Billy.cox@ams.usda.gov
WASHINGTON, April 6, 2010 – The U.S. Department of Agriculture has filed an administrative action against Salyer American Fresh Foods Inc., operating in Monterey, Calif. The action alleges that the company committed willful, repeated, and flagrant violations of the Perishable Agricultural Commodities Act (PACA).
In the action, it is alleged that the company failed to make full payment promptly to 10 sellers of the agreed purchase prices, or balances thereof, in the total amount of $257,629.50 for 55 lots of perishable agricultural commodities, which the company purchased, received, and sold in the course of, or in contemplation of, interstate or foreign commerce during the period of March 2009 through June 2009. The complaint also alleges that the company, during the period April 2009 through August 2009, failed to remit net proceeds, or balances thereof, in the total amount of $2,040,186.51 to 20 growers for 2,479,143 containers of produce, which the company, while acting as a growers’ agent, sold in the course of, or in contemplation of, interstate or foreign commerce.
The company will have an opportunity to request a hearing. Should USDA find that the company committed repeated and flagrant violations, it could be barred from the produce industry for two years. Furthermore, its principals could not be employed by or affiliated with any PACA licensee for one year and then only with the posting of a USDA-approved surety bond.
The PACA establishes a code of good business conduct for the produce industry. Under it, all interstate traders in fresh and frozen fruits and vegetables must be licensed by USDA. USDA is authorized to suspend or revoke a trader’s license for violating the act.
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