WASHINGTON, June 17, 2010 – The U.S. Department of Agriculture has filed an administrative action against K & R Farms Produce Inc., operating in Sanford, Fla. The action alleges that the company committed willful, repeated, and flagrant violations of the Perishable Agricultural Commodities Act (PACA).
In the action, it is alleged that the company failed to make full payment promptly to 24 sellers of the agreed purchase prices, or balances thereof, in the total amount of $357,926.42 for 304 lots of produce, which the company purchased, received, and accepted in the course of or in contemplation of interstate or foreign commerce during the period of October 2007 through July 2008.
The company will have an opportunity to request a hearing. Should USDA find that the company committed repeated and flagrant violations, it could 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 then only with the posting of a USDA-approved surety bond.
The PACA establishes a code of good 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.
Source: USDA