Public Affairs
WASHINGTON, Feb. 28, 2024 – The U.S. Department of Agriculture (USDA) entered into a stipulation agreement with Cabritos Garza Corporation (Cabritos) of Humble, Texas, on Feb. 7, 2024, for alleged violations of the Packers and Stockyards (P&S) Act. Under the terms of the stipulation agreement, Cabritos waived its rights to a hearing and paid a civil penalty of $7,500.
An investigation by USDA’s Agricultural Marketing Service (AMS) revealed that between February 2023 and June 2023, Cabritos failed to pay timely for the full purchase price of 2,098 head, totaling $506,238.72. Payments were up to 21 days late. Additionally, during the same period, Cabritos issued two non-sufficient funds (NSF) checks for $45,593.00, which were later reissued and deposited.
The P&S Act requires subject entities to issue the full payment for livestock by the close of the first business day following purchase and transfer of possession. Failure to timely pay for livestock purchases and issuing NSF checks are violations of the P&S Act.
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 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 the 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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