Nadine Wilkins (202)720-8998Nadine.wilkins@ams.usda.gov
WASHINGTON, July 28, 2011 – Eurofresh Inc., headquartered in Willcox, Ariz., has posted an additional $100,000 cash surety with the U.S. Department of Agriculture to maintain its Perishable Agricultural Commodities Act (PACA) license. On Dec. 8, 2009, Eurofresh Inc. posted a $50,000 cash surety to obtain a PACA license. Based upon the company’s substantial increase in the level of its produce purchases during the past year, the bond amount required was increased to $150,000.
Under the regulations of the PACA, the company was required to post and maintain a bond following the company’s prior involvement in bankruptcy.
USDA will hold the $150,000 bond for a total of three years from the date it was initially posted or until Dec. 8, 2012, providing assurance to the industry that the company will be able to pay for produce purchased and to conduct its business according to PACA rules.
PACA requires that all interstate traders in fresh and frozen fruits and vegetables be USDA licensed. The PACA establishes a code of good business conduct for the produce industry. USDA is authorized to suspend or revoke a trader's license for violating the act.
In fiscal year 2010, USDA resolved approximately 2,000 claims filed under the PACA involving $30 million. This is just one more way in which the USDA continues to support the fruit and vegetable industry.
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