USDA Takes Actions Against Superior Tomato Avocado
Washington D.C.-
By ANUK Staff
2.5.13
The USDA has just announced that it has filed an administrative action under the Perishable Agricultural Commodities Act (PACA) against Superior Tomato Avocado Ltd.
The Texas-based company allegedly failed to pay 49 produce sellers in the amount of $1,514,272 from June 2011 through January 2012.
Superior Tomato Avocado Ltd. will have an opportunity to request a hearing. If the USDA finds that the company committed repeated and flagrant violations, it would 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 not without the posting of a USDA-approved surety bond.
The Agricultural Marketing Service, PACA Division, regulates fair trading practices of produce companies operating under PACA. The PACA establishes a code of 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.
In the past three years, USDA resolved approximately 5,000 claims filed under the PACA involving $96 million.
American Marketing Association
