USDA/AMS Press Release:
Fairway Group Holdings Corp. and its subsidiaries, operating out of New York, posted $1 million in surety bonds with the U.S. Department of Agriculture (USDA).
The companies posted the bonds to obtain licenses to operate in the produce industry.
Under the regulations of the Perishable Agricultural Commodities Act (PACA), the companies were required to post the bonds following their prior involvement in bankruptcy.
USDA will hold the bonds for three years, providing assurance to the industry that the companies will be able to pay for produce purchased and to conduct business according to PACA rules.
The PACA Division, which is part of USDA’s Agricultural Marketing Service, (AMS), regulates fair trading practices of produce businesses that are operating subject to the PACA including buyers, sellers, commission merchants, dealers and brokers within the fruit and vegetable industry.
In the past three years, USDA resolved approximately 3,500 PACA claims involving more than $58 million. Our experts also assisted more than 8,000 callers with issues valued at approximately $140 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.
For further information, contact Josephine E. Jenkins, Chief, Investigative Enforcement Branch, at (202) 720-6873, or by email at PACAInvestigations@ams.usda.gov.
Contact Info: Nadine Wilkins, nadine.wilkins@ams.usda.gov, 202-720-8998
Release No.: 039-17
