Public Affairs
WASHINGTON, Sept. 28, 2023 – The U.S. Department of Agriculture (USDA) entered into a stipulation agreement with Pilgrim’s Pride Corporation (Pilgrim’s Pride) on Aug. 30, 2023, for alleged violations of the Packers and Stockyards (P&S) Act. Under the terms of the stipulation, Pilgrim’s Pride waived its rights to a hearing and paid a civil penalty of $3,750.
An investigation by USDA’s Agricultural Marketing Service (AMS) revealed Pilgrim’s Pride failed to pay five (5) poultry growers timely at its Lufkin and Nacogdoches, Texas, processing facilities from April 2022 through September 2022. Payments were four (4) days late.
The P&S Act requires subject entities obtaining live poultry by purchases in a cash sale or subject entities obtaining live poultry under a poultry growing arrangement to issue the full payment by the next business day following the purchase of the poultry or before the close of the fifteenth day following the week in which the poultry is slaughtered. Failure to timely pay for purchases and failure to issue the full payment for purchases is an unfair trade practice and a violation of the P&S Act.
The P&S Act authorizes the Secretary of Agriculture to assess civil penalties up to $98,605 per violation against any person after notice and opportunity for a 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 alleged violations quickly.
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 Dora Malykin, Packers and Stockyards Division, at (202) 720-7051 or by email at dora.malykin@usda.gov.
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