The U.S. Department of Agriculture (USDA) has cited Ven-Co Produce Inc. of Bronx, N.Y., for failure to pay for produce. Ven-Co is located on the Hunts Point Wholesale Terminal Market.
The company failed to pay $1,559,892.79 to 26 sellers for 210 lots of produce. This is in violation of the Perishable Agricultural Commodities Act (PACA). As a result of these actions, the USDA and Ven-Co Produce Inc. have entered into a consent decision and Ven-Co Produce Inc. cannot operate in the produce industry until Feb. 15, 2014, at which time it may reapply for a PACA license. It is not known whether Ven-Co owes money to truckers for services. Such transactions are not taken into account by the PACA.
In fiscal year 2011, USDA resolved approximately 2,000 claims filed under the PACA involving $31 million in their continued efforts to serve and protect the fruit and vegetable industry from unlawful trade practices.
Unfortunately the PACA does not offer protections to produce transportation entities who deliver fresh fruits and vegetables. Whether you are faced with an unfair claim, your load is unfairly rejected, or you are not paid for your services, you are pretty much at the mercy of the produce receiver. Of course, you can file a lawsuit where the alleged violations occur, but then you face the high cost of litgation, and have to make court appearances in a venue that may be thousands of miles away. In other words, it usually is not worth the time and effort.
How much time and money is lost every year by produce haulers is not known. But talking with people in transportation, it is significant. The produce industry has fought tirelessly for decades to avoid having truckers receive the same protections they receive under the PACA.