The U.S. Department of Agriculture (USDA) has filed an administrative complaint against Berry People LLC for alleged violations of the Perishable Agricultural Commodities Act (PACA). The company, operating from California, allegedly failed to make payment promptly to 19 produce sellers in the amount of $3,519,748 from December 2022 through August 2023.
Berry People LLC will have an 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. 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.
USDA has also imposed sanctions on Cantero Produce Corp., Panama City, Fla., for violating PACA. These sanctions include barring the business and the principal operators of the business from engaging in PACA-licensed business or other activities without approval from USDA.
Cantero Produce Corp. failed to pay $412,050 to two sellers for produce that was purchased, received, and accepted in interstate and foreign commerce from August 2022 to September 2022. This is in violation of the PACA. Cantero Produce Corp. cannot operate in the produce industry until Oct. 15, 2026, and then only after they apply for and are issued a new PACA license by USDA.
The company's principal, Carlos Martinez, may not be employed by or affiliated with any PACA licensee until Oct. 15, 2025, and then only with the posting of a USDA-approved surety bond.
USDA is required to publish the finding that a business has committed willful, repeated, and flagrant violations of PACA as well as impose restrictions against those principals determined to be responsibly connected to the business during the violation period. 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.
By issuing these penalties, USDA continues to enforce the prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.
Click here for an overview of companies that previously violated PACA.
For more information:
Corey Elliott
USDA
Tel: +1 (202) 720-6873
[email protected]
www.ams.usda.gov