USDA Cites El Metate Foods in California for PACA Violations
The USDA has cited California-based company El Metate Foods Inc. for failure to make payment to six produce sellers under the Perishable Agricultural Commodities Act (PACA).
The company allegedly failed to make payment to six produce sellers in the amount of $307,678 from March 2011 through February 2012, according to a press release. El Metate Foods will have an opportunity to request a hearing. However, if the USDA finds that the company committed repeated and flagrant violations, it would be barred from the produce industry for two years. In addition, 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.
In the past three years, the USDA resolved approximately 5,000 claims filed under PACA involving $96 million, according to a press release. Individuals, including sole proprietors, partners, members, managers, officers, directors, and major stockholders may not be employed by or affiliated with any PACA licensee without the approval of the USDA. The Agricultural Marketing Service (AMS), PACA Division, regulates fair trading practices of produce businesses operating subject to PACA.
Agricultural Marketing Service
