USDA halts operations of three produce firms
Aug 11, 2005 9:13 AM, from staff and wire reports
Three produce businesses have been cited by the United States Department of Agriculture for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act. These firms have been barred from operating in the produce industry until their awards are paid:
•Adalane Inc, also trading as Total Marketing Distributors, operating in Westland MI, for failing to pay a $6,359 award in favor of a California seller.
•Garden State Produce Inc, operating in Maspeth NY, for failing to pay a $19,703 award in favor of a Canadian seller.
•Demar Foodservice Inc, operating in East Stroudsburg PA, for failing to pay an $18,404 award in favor of a Canadian seller.
PACA provides for damages to be paid by those not meeting contractual obligations in buying and selling fresh and frozen fruits and vegetables. Interstate produce traders operating as commission merchants, dealers, or brokers, and conducting a sufficient volume of business must be USDA-licensed.
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