Safeway Fresh Foods risks 3-year ban over $3.9M PACA complaint
Safeway Fresh Foods LLC, operating as Sunnyside Fresh, is accused of failing to make payments of nearly $3.9 million to 13 produce sellers from October 2021 through July 2023.
The U.S. Department of Agriculture filed an administrative complaint against the New Jersey-based company on Friday. Safeway Fresh Foods will have the 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,” the USDA said. “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.”
Other PACA filings
The USDA announced several other PACA complaints on Thursday in California, Pennsylvania, Virginia, Texas and elsewhere.
In California, Aggrigator Inc., doing business as Amor Organics, was accused of payment failure of $264,268 to seven produce sellers from October 2022 through August 2023.
Meanwhile in Pennsylvania, Atlantic Frozen Foods LLC faced a $1,176,084 complaint involving payments to six sellers from December 2021 through May 2023.
Both companies will have the right to request hearings regarding the complaints.
Virginia's GoGreen Farms Inc. and its principal operator, Breon Clemons, were barred from the produce business until March 2025 for failure to pay $313,036 to three sellers.
Another four companies faced sanctions for failure to meet contractual agreements and failure to pay PACA reparation awards. California's West Central Produce Inc. did not pay a $117,277 award granted to a seller, the USDA said. Elirey Group Inc., doing business as Hank’s Farmer Market, failed to pay a $22,137 award. Peak Seasons Produce LLC of Florida was also sanctioned for non-payment of $113,834, and Avonature LLC of Texas failed to pay $29,003.
"USDA is required to suspend the license or impose sanctions on an unlicensed business that fails to pay PACA reparations awarded against it as well as impose restrictions against those principals determined to be responsibly connected to the business when the order is issued," the department said.
"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."
Related articles:
USDA issues PACA violations in Georgia, lifts order in Texas
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