USDA says citrus company failed to pay produce sellers $1M

The agency has filed a Perishable Agricultural Commodities Act complaint against a California company, alleging that it failed to pay two sellers.

Various mixed citrus
Effective Aug. 21, the assessment rate for Florida citrus will increase to 2 cents per carton, up from the previous rate of 1.5 cents per carton, which has been in place since 2018-19.
(Photo: Olena Rudo, Adobe Stock)

The USDA has filed an administrative complaint against California Fresh Citrus Co. for alleged violations of the Perishable Agricultural Commodities Act.

The company, operating from California, allegedly failed to make payment promptly to two produce sellers for $1,128,040 from March 2019 through March 2020, according to a news release.

California Fresh Citrus Co. can request a hearing on these violations, the USDA said. If the agency finds the company committed repeated violations, it would ban the company from the produce industry as a licensee for three years or two years after posting a USDA-surety bond, the release said.

The company’s principal operators also could not take employment or be affiliated with any PACA licensee for two years, or one year with the posting of a USDA-approved surety bond, the agency said.

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