WASHINGTON, DC - The U.S. Department of Agriculture (USDA) has imposed sanctions on Genaro Produce Incorporated, based in Miami, Florida, for failing to meet its contractual obligations to the sellers of produce it purchased under the Perishable Agricultural Commodities Act (PACA). These sanctions, according to a press release, include barring the business and the principal operators of the business from engaging in PACA-licensed business or other activities without approval from USDA.

Direct from the USDA Agricultural Marketing Service:

By issuing these penalties, USDA continues to enforce the prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.

Genaro Produce Incorporated failed to pay $284,981 to ten sellers for produce that was purchased, received, and accepted in interstate and foreign commerce from September 2016 to October 2018. This is in violation of the PACA. Genaro Produce Incorporated cannot operate in the produce industry until August 10, 2022, and then only after they apply for and are issued a new PACA license by USDA.

The company’s principals, Teodoro Aragon and Genaro Aragon, may not be employed by or affiliated with any PACA licensee until August 10, 2021, and then only with the posting of a USDA approved surety bond.

USDA is required to publish the finding that a business has committed willful, repeated, and flagrant violations of PACA as well as impose restrictions against those principals determined to be responsibly connected to the business during the violation period. Those individuals, including sole proprietors, partners, members, managers, officers, directors, or major stockholders may not be employed by or affiliated with any PACA licensee without USDA approval.

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, 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. These are just two examples of how USDA continues to support the fruit and vegetable industry.

To see the full press release directly from the USDA, click here.

USDA's Agricultural Marketing Service