Nadine Wilkins (202)720-8998Nadine.wilkins@ams.usda.govBilly Cox (202)720-8998Billy.cox@ams.usda.gov
WASHINGTON, March 11, 2010 - The U.S. Department of Agriculture has filed an administrative action against SK Foods L.P., operating in Lemoore, Calif. In the action, it is alleged that the company failed to make full payment promptly to 12 sellers of the agreed purchase prices in the total amount of $594,705.96 for 46 lots of perishable agricultural commodities, which the company purchased, received, and accepted in interstate and foreign commerce during the period of May 2008 through May 2009.
The company will have an opportunity to request a hearing. Should USDA find that the company committed repeated and flagrant violations, it could be barred from the produce industry for two years. Furthermore, its principals could not be employed by or affiliated with any Perishable Agricultural Commodities Act (PACA) licensee for one year and then only with the posting of a USDA-approved surety bond.
The PACA establishes a code of good business conduct for the produce industry. Under it, all interstate traders in fresh and frozen fruits and vegetables must be licensed by USDA. USDA is authorized to suspend or revoke a trader’s license for violating the act.
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