As you know, timely inspection of fresh fruits and vegetables is critical to the proper functioning of the produce market, since delays of even one or two days will have a substantial impact on the quality of the produce to be inspected. Produce receivers are also concerned about the quality of some of the inspections performed. For example, inspectors use widely varying methodology, so that the results of inspections can be unpredictable. Inspectors who have been transferred from one location to another for poor performance have suspect qualifications. Inspectors at the destination markets often seem unwilling to contradict inspections performed at the point of shipment, thereby rendering the results of their inspection dependent on agency politics rather than the quality of the produce.
Receivers are reluctant to complain about poor performance, however, for fear of retaliation.
Thus, AMS has proposed to increase the costs for destination inspections at a time at which customer satisfaction with the service provided is declining. The concerns discussed above are highlighted by the arrests that took place at the Hunts Point, NY market on October 27, 1999. As you know, eight USDA inspectors and thirteen wholesaler employees were arrested on charges that racketeering and bribery had been taking place at the market for nearly twenty years. These allegations coupled with the issues identified above mitigate in favor of conducting public meetings on the inspection system as a whole so that concerns can be aired and the system can be considered in its entirety before inspection fee increases are implemented. In reviewing the system as a whole, we recommend that the Agency consider administering a privatized destination inspection program for produce.