USDA files action against Texas company for PACA violations

Date: 
Monday, 31 August 2020 - 11:30pm

paca artAs part of its efforts to enforce the Perishable Agricultural Commodities Act and ensure fair trading practices within the U.S. produce industry, the U.S. Department of Agriculture has filed an administrative complaint against Martinez Fresh Produce LLC. The company, operating from Texas, allegedly failed to make payment promptly to eight produce sellers in the amount of $155,508 from April 2017 through March 2019.

Martinez Fresh Produce LLC 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 a part of AMS’ Fair Trade Practices Program, regulates fair trading practices of produce businesses that are operating subject to the 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.

About D. Otani Produce

In business since 1989, D. Otani Produce, Inc. has grown into one of Hawaii’s largest produce wholesalers, enjoying business with hotels, restaurants, local business institutions. We are also a major distributor to Hawaii’s retailers.

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D. Otani Produce
1321 Hart St
Honolulu, HI 96817

Phone: (808) 509-8350

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