Fresh Produce Market Report: Score Distribution Across 1,000 USDA PACA Entities Reveals Industry Compliance Trends

When you're running a small grocery store, restaurant, or food service business, choosing the right fresh produce supplier can make or break your operation. One bad shipment, one failed payment dispute, or one unreliable partner can cascade into lost revenue, disappointed customers, and operational headaches. That's why understanding the compliance landscape of produce dealers, brokers, and commission merchants isn't just helpful—it's essential.

Verdica's Fresh Produce platform recently completed a comprehensive analysis of 1,000 USDA PACA-licensed entities, revealing critical insights about compliance trends, risk distribution, and what separates top-performing suppliers from those raising red flags. With an average Verdica score of 831 out of 850 points and 95.3% of entities earning an A grade, the data tells a story that every small business owner should understand before signing their next produce contract.

Understanding the Verdica Scoring System and USDA PACA Context

Before diving into the numbers, it's important to understand what we're measuring. The Perishable Agricultural Commodities Act (PACA) is the federal regulatory framework administered by the USDA that governs fair trading practices in the fresh produce industry. PACA licensing is required for businesses that buy or sell fresh fruits and vegetables in interstate or foreign commerce, with wholesale values exceeding $230,000 annually.

Verdica's scoring system evaluates entities across multiple compliance dimensions, including PACA license status, enforcement actions, disciplinary history, financial reliability indicators, and operational track record. The maximum score of 850 points represents an entity with a clean compliance record, active good-standing license, and no adverse regulatory actions.

For small business owners, these scores translate directly into risk assessment. A high score indicates a supplier with demonstrated reliability and regulatory compliance—the kind of partner you can count on for consistent quality and fair dealing. Lower scores signal potential red flags that warrant additional due diligence before entering into agreements.

The Big Picture: 95% of Produce Entities Demonstrate Strong Compliance

Of the 1,000 dealers, brokers, and commission merchants scored by Verdica, 953 earned an A grade, representing 95.3% of the market. This overwhelming majority demonstrates that most USDA PACA-licensed entities maintain strong compliance standards and operate within regulatory guidelines.

The grade distribution breaks down as follows:

• A Grade: 953 entities (95.3%) - Excellent compliance, minimal to no regulatory concerns
• B Grade: 32 entities (3.2%) - Good compliance with minor considerations
• C Grade: 14 entities (1.4%) - Moderate compliance concerns requiring attention
• D Grade: 1 entity (0.1%) - Significant compliance issues

For small business owners, this distribution offers both reassurance and a word of caution. While the vast majority of produce suppliers operate responsibly, the presence of 47 entities with B, C, or D grades—nearly 5% of the market—underscores the importance of verification. Without proper due diligence, your business could unknowingly partner with one of these higher-risk entities.

The average score of 831/850 reflects an industry that generally maintains high standards, but the 19-point gap from perfection indicates that even among compliant entities, there's variation in track records worth understanding.

The Gold Standard: Five Entities Achieving Perfect 850 Scores

At the top of the compliance spectrum, five entities achieved the maximum possible Verdica score of 850 points:

1. B & D PRODUCE DISTRIBUTORS INC
2. BRAUM INC W H
3. BLANKE SALES INC BOB
4. BETHEL FOOD MARKET INC
5. MIMS PRODUCE INC

These perfect scores represent suppliers with impeccable regulatory records—no enforcement actions, no PACA violations, no payment disputes, and consistently maintained licenses in good standing. For small business owners, entities like these represent the gold standard in produce partnerships.

What distinguishes these top performers? Based on Verdica's latest data refresh from July 13, 2026, which included 30 records from PACA enforcement proceedings, these entities maintained clean records despite the regulatory scrutiny that exists across the industry. They've demonstrated sustained commitment to fair trading practices, financial responsibility, and compliance with federal produce trading regulations.

When evaluating potential suppliers, small business owners should look for entities approaching or achieving these top scores. While a perfect 850 isn't necessary for a reliable partnership, scores in the 840-850 range indicate suppliers with proven track records and minimal risk profiles.

Red Flags: Understanding the Bottom 5% of Scores

On the opposite end of the spectrum, the five lowest-scoring entities in Verdica's analysis each scored 524/850—a full 326 points below the maximum and 307 points below the industry average:

1. HAMDEN MARKETS LLC (524)
2. CT FARMS LTD (524)
3. PARADISE PRODUCE (524)
4. HOWARD FARMS LLC (524)
5. MOODY'S MARKET INC (524)

These scores indicate significant compliance concerns that should raise immediate red flags for any small business owner considering a partnership. A score this far below the industry average typically reflects one or more serious issues: PACA license suspensions or revocations, enforcement actions for unfair trading practices, failure to pay producers, employment of responsibly connected individuals with troubled histories, or patterns of regulatory violations.

The 326-point gap between these entities and perfect scores isn't just a statistical difference—it represents fundamental disparities in operational reliability and regulatory compliance. For small business owners, partnering with entities in this score range carries substantial risk of payment disputes, quality issues, and potential legal complications.

Important note: A low score doesn't necessarily mean an entity is currently operating illegally. Some entities with past violations may be working to rehabilitate their records. However, the score signals that extra due diligence is essential, including verifying current PACA license status, reviewing any recent enforcement actions, and potentially seeking alternative suppliers with stronger compliance records.

What the Score Distribution Means for Small Business Owners

The concentration of entities in the A grade range (95.3%) reveals an important truth about the fresh produce industry: most suppliers meet basic compliance standards, but that doesn't mean all A-rated entities are created equal. The A grade spans a range of scores, and understanding where a potential partner falls within that range provides valuable context.

Consider two entities, both with A grades:

• Entity One: Score of 850/850 (perfect compliance)
• Entity Two: Score of 780/850 (still A grade, but 70 points lower)

Both are technically in the same grade category, but Entity One has demonstrated flawless regulatory compliance while Entity Two may have minor historical issues or less established track records. For a small business owner with thin margins and high stakes, that 70-point difference could represent meaningful variations in reliability.

The 32 entities earning B grades (3.2% of the market) represent a middle ground—generally compliant operations with some considerations worth understanding. These might include entities with older, resolved violations, newer businesses with limited track records, or operations with minor administrative issues that don't rise to serious enforcement actions.

The 14 C-grade entities (1.4%) and single D-grade entity should prompt careful evaluation. These scores indicate compliance concerns substantial enough to potentially impact your business relationship.

USDA PACA Enforcement Trends and What They Mean for Verification

Verdica's platform incorporates real-time data from USDA PACA enforcement proceedings. The latest data refresh on July 13, 2026, included 30 records from PACA enforcement, reflecting the ongoing regulatory oversight that shapes the fresh produce marketplace.

PACA enforcement actions can include:

• License suspensions or revocations for failure to pay producers, misrepresentation, or breach of trust
• Reparation awards requiring entities to pay producers for unfair treatment or payment failures
• Publication of responsibly connected individuals who cannot operate in the produce industry due to past violations
• Injunctions and civil penalties for serious or repeated violations

These enforcement actions directly impact Verdica scores, and recent enforcement activity is weighted more heavily than older, resolved issues. For small business owners, this means Verdica scores reflect not just historical compliance, but current regulatory standing.

The produce industry's unique characteristics make PACA enforcement particularly relevant. Perishable goods create time pressure and financial vulnerability—once lettuce wilts or berries spoil, your investment is gone. PACA's trust provisions provide legal protections for produce sellers, but prevention through verification is always preferable to pursuing legal remedies after problems occur.

Practical Steps: Using Compliance Data in Your Supplier Selection Process

Armed with understanding of score distributions and compliance trends, small business owners can implement practical verification steps:

Step 1: Establish Minimum Score Thresholds Based on Verdica's data showing 953 entities with A grades, you can afford to be selective. Consider establishing a minimum score threshold of 800/850 for potential suppliers. This keeps you well within the high-performing majority while filtering out higher-risk entities.

Step 2: Verify Before Every Major Contract Don't rely on a single verification. Compliance status can change as new enforcement actions emerge. Check Verdica scores before signing contracts, especially for large orders or new supplier relationships.

Step 3: Understand the Context Behind Scores A score is a starting point, not the complete picture. If you're considering a supplier with a B or C grade due to pricing or product availability, understand specifically what's driving that score. Is it a one-time historical issue or an ongoing pattern?

Step 4: Compare Within Your Supplier Pool When multiple suppliers offer similar products and pricing, use Verdica scores as a tiebreaker. Why take unnecessary risk when entities like B & D PRODUCE DISTRIBUTORS INC or BRAUM INC W H offer perfect compliance records?

Step 5: Document Your Due Diligence Maintain records of your supplier verification process. If problems arise, documentation of your reasonable due diligence can provide important protection for your business.

The Competitive Advantage of Compliance-Focused Supplier Selection

For small business owners operating on thin margins, supplier reliability isn't just about compliance—it's about competitive advantage. Consider the business impact of supplier-related problems:

• Inventory disruptions: When a supplier fails to deliver, you face empty shelves, disappointed customers, and rushed orders from alternative sources at premium prices
• Quality inconsistencies: Unreliable suppliers often correlate with quality problems, leading to waste, customer complaints, and damaged reputation
• Payment disputes: Entities with poor compliance records are more likely to have payment-related conflicts, potentially tying up your capital in legal proceedings
• Operational distraction: Dealing with supplier problems consumes management time and attention that could be directed toward growing your business

By contrast, partnering with high-scoring suppliers provides:

• Predictable operations: Reliable deliveries enable better inventory planning and customer service
• Quality consistency: Suppliers with strong compliance records typically maintain better quality standards
• Reduced risk: Lower probability of payment disputes, legal complications, or enforcement action impacts
• Peace of mind: Confidence that your supplier relationships are built on solid foundations

The data from 1,000 scored entities demonstrates that choosing high-compliance suppliers isn't about limiting options—with 953 A-rated entities available, you have abundant choices among top-performing suppliers.

Looking Forward: Compliance Trends and Small Business Strategy

The fresh produce industry continues evolving, with regulatory oversight, food safety standards, and market dynamics creating an increasingly complex landscape. The concentration of entities in the A-grade range (95.3%) suggests that industry-wide compliance standards are generally strong, but the presence of outliers and the regular PACA enforcement activity reflected in Verdica's data remind us that vigilance remains essential.

For small business owners, several trends warrant attention:

Increasing Regulatory Scrutiny: PACA enforcement continues actively, with 30 enforcement records in Verdica's latest data refresh. This suggests ongoing regulatory oversight that will continue identifying problem entities.

Consolidation Dynamics: As smaller operators exit the market and larger entities expand, the supplier landscape continues shifting. Regularly updating your supplier verification ensures you're working with currently licensed, compliant entities.

Technology-Enabled Verification: Platforms like Verdica make compliance verification accessible to small businesses that previously lacked resources for thorough due diligence. This democratization of information levels the playing field.

Supply Chain Transparency: Customers increasingly expect and demand transparency about supply chain practices. Partnering with highly compliant suppliers supports your ability to meet these transparency expectations.

Taking Action: Protecting Your Business Through Verification

The analysis of 1,000 USDA PACA entities reveals a clear message: while most produce suppliers maintain strong compliance records, the stakes are too high to assume every potential partner meets your standards. The difference between the 953 A-rated entities and the 47 entities with lower grades could mean the difference between smooth operations and costly disruptions.

For small business owners, verification isn't overhead—it's insurance. The few minutes required to check a Verdica score before entering a supplier relationship can prevent weeks of operational headaches and thousands of dollars in losses.

The entities achieving perfect 850 scores—B & D PRODUCE DISTRIBUTORS INC, BRAUM INC W H, BLANKE SALES INC BOB, BETHEL FOOD MARKET INC, and MIMS PRODUCE INC—prove that excellent compliance is achievable and sustainable. These should be your benchmarks when evaluating potential partners.

Equally important, the entities scoring 524/850—HAMDEN MARKETS LLC, CT FARMS LTD, PARADISE PRODUCE, HOWARD FARMS LLC, and MOODY'S MARKET INC—demonstrate that significant compliance issues do exist in the marketplace. Without verification, your business could unknowingly enter relationships with these higher-risk entities.

The average score of 831/850 across all entities provides a useful reference point, but remember: your business doesn't need average suppliers. With 95.3% of entities earning A grades, you can set high standards and still have abundant supplier options.

Your Next Steps

Whether you're evaluating a current supplier relationship, vetting a new potential partner, or conducting a comprehensive review of your entire supplier portfolio, verification should be your first step. Understanding USDA PACA compliance status, enforcement history, and comparative scoring provides the foundation for informed decision-making.

The data is clear: most produce suppliers operate responsibly, but the minority of problematic entities pose real risks. The question isn't whether to verify—it's whether you can afford not to.

Look up any dealers on Verdica Fresh Produce—free for your first search. See exactly where your current and potential suppliers rank among the 1,000 entities we've analyzed, and make your next supplier decision with confidence backed by real compliance data.