The U.S. Department of Agriculture reached a consent decision with Cargill Meat Solutions Corp. of Wichita, Kan., on Feb. 5, 2024, for violations of the Packers and Stockyards (P&S) Act.
An investigation by USDA’s Agricultural Marketing Service was initiated in March 2022 when Cargill self-reported that its beef grading cameras were installed incorrectly, resulting in inaccurate yield grades at its four fed cattle plants. The investigation revealed that Cargill applied inaccurate yield grades to 324,824 carcasses that it purchased on a carcass grade and weight basis from August 2021 to March 2022, resulting in an underpayment of $12,514,804 to cattle sellers. Cargill compensated all sellers for any underpayment in May 2022 using corrected yield grades.
Under the consent decision, Cargill must cease and desist from failing to meet applicable camera grading installation standards as established by the National Institute of Standards and Technology at its cattle processing plants and from compensating sellers based on inaccurate grading. In addition, Cargill was assessed a civil penalty of $155,000.
The P&S Act is a fair-trade practice and payment-protection law that promotes fair and competitive marketing environments for the livestock, meat and poultry industries.
For further information about the Packers and Stockyards Act, contact Bryice Wilke, Packers and Stockyards Division, at 515-314-3888 or by email at Bryice.A.Wilke@usda.gov.
The USDA issued a complaint against Indiana Halal Farms LLC, LaGrange, Ind., and its owner, Aref Alhag, on Jan. 19, 2024, for alleged violations of the Packers and Stockyards Act.
An investigation by USDA’s Agricultural Marketing Service revealed that between Oct. 12 and 30, 2020, Halal failed to pay timely for the full purchase price of 839 head of livestock totaling $168,815.94. Additionally, Halal failed to pay for $60,335.67 in livestock purchases and issued two nonsufficient funds checks for a total of $20,000.
The P&S Act authorizes the secretary of agriculture to assess civil penalties, up to $33,896 per violation, against any person after notice and opportunity for hearing on the record. USDA may offer alleged violators the option of waiving their right to a hearing and enter into a stipulation agreement to resolve the alleged violations quickly.
For further information about the P&S Act, contact Dora Malykin, Packers and Stockyards Division, at 202-720-7051 or by email at dora.malykin@usda.gov.
Source: USDA's AMS
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