WASHINGTON, DC - Alleging violations of the Perishable Agricultural Commodities Act (PACA), the U.S. Department of Agriculture (USDA) has filed an administrative complaint against Ayar Produce NY. The New York-based company allegedly failed to make prompt payment to 14 produce sellers in the amount of $720,226 from February to September 2020.

Direct from the USDA Agricultural Marketing Service:

Ayar Produce NY will have an opportunity to request a hearing. Should 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 in the Fair Trade Practices Program in the Agricultural Marketing Service, 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, USDA resolved approximately 3,500 PACA claims involving more than $165 million. PACA staff also assisted more than 6,600 callers with issues valued at approximately $169 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.

To read the release in full, click here.

USDA Agricultural Marketing Service