WASHINGTON, DC - PAB Produce, which is headquartered in Los Angeles, California, recently posted a $150,000 surety bond with the U.S. Department of Agriculture.

Direct from the USDA Agricultural Marketing Service:

The company posted the bond to employ Jose Del Toro, Jr., as required by the Perishable Agricultural Commodities Act (PACA).

In October 2018, the Agricultural Marketing Service (AMS) found that Unified Ltd., doing business as Pan American Banana, Los Angeles, California, committed repeated and flagrant violations of the PACA. Jose Del Toro, Jr. was an officer and a stockholder of the company during the violation period.

Any PACA licensee wishing to employ individuals who have failed to pay a reparation award, or have been subject to a USDA disciplinary action, must post a USDA-approved surety bond. The USDA will hold the $150,000 bond for four years and nine months, providing assurance to the industry that the firm will be able to pay for produce purchased and to conduct its business according to PACA rules.

The PACA Division, which is a part of AMS’ Fair Trade Practices Program, 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, the USDA resolved approximately 3,500 PACA claims involving more than $58 million. PACA staff also assisted more than 7,800 callers with issues valued at approximately $148 million. These are just two examples of how the USDA continues to support the fruit and vegetable industry.

For further information, contacts, and to read the press release in its entirety, please click the link here.

USDA’s Agricultural Marketing Service