Arizona Produce Business Settles Reparation Award

AMS No. 058-10

Nadine Wilkins (202)720-8998Nadine.wilkins@ams.usda.govBilly Cox (202)720-8998Billy.cox@ams.usda.gov

WASHINGTON, March 26, 2010 – The U.S. Department of Agriculture announced that Jalisco Foods Inc., operating in Springdale, Ariz., has settled a reparation award issued under the Perishable Agricultural Commodities Act (PACA).

Jalisco Foods Inc.’s officers, directors, and major stockholders, Salvador Herrera and Epigmenia Herrera, may be employed by or affiliated with any PACA licensee.

PACA provides for damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. Interstate traders operating as commission merchants, dealers or brokers, and conducting a sufficient volume of business must be USDA-licensed.

PACA requires USDA to suspend the license of a business that fails to pay reparations awarded against it.

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