The U.S. Department of Agriculture (USDA) has taken firm action against two Georgia-based produce businesses, South Side Fresh Produce LLC and All Fresh Farms LLC, for failing to honor their financial commitments, according to a press release by U.S. Department of Agriculture’s Agricultural Marketing Service (AMS) on March 18, 2024.

This move underscores the USDA’s dedication to enforcing the Perishable Agricultural Commodities Act (PACA), a key regulatory framework aimed at ensuring fair play in the produce market.

The sanctions, announced on Monday, stem from the businesses’ inability to pay reparation awards issued under PACA, highlighting the USDA’s role in mediating disputes within the produce sector.

South Side Fresh Produce LLC, located in Forest Park, and All Fresh Farms LLC, based in Tifton, have been suspended from conducting PACA-licensed business due to their outstanding debts of $6,800 and $43,070, respectively, to sellers in Minnesota and Arizona.

Pedro Consuelo Salinas, Pascual Avitia, Sr., and Bobby J. Pettiford, the principal operators of these businesses, are now barred from engaging in any PACA-licensed activities without prior approval from the USDA.

This decision reflects the USDA’s commitment to protecting the rights of sellers and buyers alike, ensuring that all parties fulfill their contractual obligations.

PACA plays a crucial role in the agricultural sector by providing a forum for resolving disputes over produce transactions.

It mandates that businesses failing to comply with reparation orders face license suspension and other sanctions.

This regulatory mechanism is vital for maintaining trust and fairness in the marketplace, ensuring that sellers receive prompt and full payment for their goods.

The enforcement actions taken by the USDA serve as a reminder of the importance of adhering to PACA regulations. By holding businesses accountable, the USDA aims to foster a more reliable and equitable trading environment for the fruit and vegetable industry.