USDA sanctions PACA violators in Michigan and Texas
The USDA imposed sanctions on The Apple Truck LLC, operating out of Ann Arbor, MI, and CFG Produce Inc., from Lantana, TX.
The companies did not meet contractual obligations to produce sellers and failed to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).
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.
The Apple Truck reportedly failed to pay a $27,803 award in favor of a Michigan seller. As of the issuance date of the reparation order, Apley Dale and Bird Dog Agribusiness were listed as members of the business.
CFG Produce failed to pay a $151,053 award in favor of a California seller. As of the issuance date of the reparation order, Shawn E. Jackson was listed as the officer, director and major stockholder of the business.
PACA provides an administrative forum to handle disputes involving produce transactions; this may result in USDA’s issuance of a reparation order that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables.