American Food Distributors, LLC., Posts $260,000 Surety Bond to Obtain PACA License

USDA/AMS Press Release:

Release No.: 169-14

Contact: Nadine Wilkins, (202) 720-8998, nadine.wilkins@ams.usda.gov

WASHINGTON, July 17, 2014 – American Food Distributors Inc., operating in Denver, Colo., has posted a $260,000 surety bond with the U.S. Department of Agriculture (USDA).

The company posted the bond to obtain a license to operate in the produce industry.

Under the regulations of the Perishable Agricultural Commodities Act (PACA), the company was required to post a bond following its prior involvement in bankruptcy.

USDA will hold the bond for three years, providing assurance to the industry that the company will be able to pay for produce purchased and to conduct business according to PACA rules.

The Agricultural Marketing Service, (AMS), PACA Division, regulates fair trading practices of produce businesses operating subject to PACA, which includes buyers, sellers, commission merchants, dealers and brokers within the fruit and vegetable industry. All oversight of actions related to PACA are conducted by AMS, an agency within USDA.

In the past three years, USDA resolved approximately 4,600 claims filed under PACA involving more than $87 million. This is just one more way USDA continues to support the fruit and vegetable industry.