USDA files action over NJ company's $750K PACA violations

April 07, 2020

paca artAs part of its efforts to enforce the Perishable Agricultural Commodities Act and ensure fair trading practices within the U.S. produce industry, the U.S. Department of Agriculture has filed an administrative complaint against Southern Sun LLC. The company, operating from New Jersey, allegedly failed to make payment promptly to 14 produce sellers in the amount of $744,685 from February 2018 through November 2018.

Southern Sun 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.

In the past three years, USDA resolved approximately 3,500 PACA claims involving more than $58 million. PACA staff also assisted more than 7,800 callers with issues valued at approximately $148 million.

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