Public Affairs
WASHINGTON, Nov. 9, 2021 – The U.S. Department of Agriculture (USDA) reached a consent decision against Petaluma Livestock Auction Yard Inc. (Petaluma) and Manuel A. Brazil (Brazil) of Petaluma, Calif., on Sept. 28, 2021, for alleged violations of the Packers and Stockyards (P&S) Act.
An investigation by USDA’s Agricultural Marketing Service revealed that during November and December 2017, Petaluma and Brazil engaged in deceptive trade practices by operating as both a market agency selling livestock in commerce on a commission basis and as a packer under the Act.
Brazil has common ownership and management in Petaluma, a market agency selling livestock on a commission basis, and a livestock packing plant in Newman, Calif., (Newman Plant), a packer subject to the Act. Brazil purchased veal calves, consigned for sale by third parties, from its own market agency and had them custom slaughtered at the Newman Plant. In addition, Petaluma and Brazil served as the sole supplier of livestock for slaughter at the Newman Plant.
Petaluma and Brazil’s auction market business relationship with the Newman Plant lessens its loyalty to consignors and impairs the quality of selling services that it provides to them; this is a violation of the P&S Act. In addition, operating as a packer and as a market agency selling on commission is considered a deceptive trade practice and is a violation of the Act and regulations.
Under the consent decision, Petaluma and Brazil are ordered to cease and desist from operating as both a market agency selling livestock in commerce and as a packer, including entering into any agreement, relationship or association with any packer, or any other buyer, which lessens the loyalty of Petaluma to its consignors that impairs the quality of its agency selling services.
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 Kraig Roesch, Packers and Stockyards Division, at (303) 375-4291, or by email at kraig.roesch@usda.gov.
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