USDA Files Action against Pangea Produce Distributors

Posted on November 5, 2014 by

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The U.S. Department of Agriculture (USDA) filed an administrative action under the Perishable Agricultural Commodities Act (PACA) against Pangea Produce Distributors Inc. The Florida company allegedly failed to make payment to three produce sellers in the amount of $262,199 from October 2010 through December 2013.

Pangea Produce Distributors Inc. will have an opportunity to request a hearing. Should USDA find the company committed repeated and flagrant violations, it would 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 Agricultural Marketing Service (AMS) regulates fair trading practices of produce companies operating subject to PACA, which includes buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry. All oversight of actions related to PACA are conducted by AMS, an agency within USDA. PACA establishes a code of good business conduct for the produce industry and requires all interstate traders in fresh and frozen fruits and vegetables be licensed by USDA. USDA is authorized to suspend or revoke a trader’s license for violating the act.

In the past three years, USDA resolved approximately 4,600 claims filed under PACA involving more than $87 million. This is just one more way USDA continues to support the fruit and vegetable industry.

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