As part of its efforts to ensure fair trading practices within the U.S. produce industry, the Department of Agriculture has imposed sanctions on three produce businesses for failing to meet their contractual obligations to the sellers of produce they purchased and failing to pay reparation awards issued under the Perishable Agricultural Commodities Act.  These sanctions include suspending the businesses’ PACA licenses and barring the principal operators of the businesses from engaging in PACA-licensed business or other activities without approval from USDA.  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.

The following businesses and individuals are currently restricted from operating in the produce industry:

• SAR Quality Avocados Corp., operating out of McAllen, TX, for failing to pay a $102,783 award in favor of a New Jersey seller.  As of the issuance date of the reparation order, Javier Sanchez Aguilar and Maria De Jesus Romero Sanchez were listed as the officers, directors and/or major stockholders of the business.  Another principal of the business at the time of the order was Luis F. Mejia.  He has challenged his responsibly connected status.
• Martinez Fresh Produce LLC, operating out of Dallas, for failing to pay a $17,767 award in favor of a Texas seller.  As of the issuance date of the reparation order, Arturo Martinez Isguerra was listed as a member of the business.
• Fresh Is Best Inc., operating out of Long Beach, CA, for failing to pay a $17,638 award in favor of a California seller.  As of the issuance date of the reparation order, Ever Melchor, Antonio Melchor and Reina Melchor were listed as the officers, directors and/or major stockholders of the business.

In the past three years, USDA resolved approximately 3,350 PACA claims involving more than $63 million. PACA staff also assisted more than 8,000 callers with issues valued at approximately $156 million.