AMS NEWS RELEASE

AMS No. 098-04


Nadine Wilkins (202) 720-8998

nadine.wilkins@usda.gov

Billy Cox (202) 720-8998

billy.cox@usda.gov


USDA FILES ACTION AGAINST BAYSIDE PRODUCE INC., SALINAS, CALIFORNIA


WASHINGTON, May 20, 2004 – The U.S. Department of Agriculture has filed an administrative action against Bayside Produce Inc., operating in Salinas, Calif. The action alleges that the company committed repeated and flagrant violations of the Perishable Agricultural Commodities Act.


In the action, it is alleged that the company failed to pay 22 sellers $163,102.70 for perishable agricultural commodities purchased in interstate commerce during the period of November 2002 through February 2003.

 

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 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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