WASHINGTON, DC - The U.S. Department of Agriculture (USDA) has filed an administrative complaint under the PACA against PK Produce Inc. The company, operating from Ohio, allegedly failed to make payment promptly to 14 produce sellers in the amount of $827,222 from November 2017 through October 2018.

Direct from the USDA Agricultural Marketing Service:

PK Produce Inc. will have an opportunity to request a hearing. Should the USDA find that the company committed repeated and flagrant violations, it would be barred from the produce industry as a licensee for three years, or two years with the posting of a USDA-approved surety bond. Furthermore, its principals could not be employed by or affiliated with any PACA licensee for two years, or one year with the posting of a USDA-approved surety bond.

The PACA Division, which is a part of AMS’ Fair Trade Practices Program, 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, the 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.

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

USDA's Agricultural Marketing Service