Release No.: 049-19
WASHINGTON, April 26, 2019 – As part of its commitment to ensuring fair and competitive markets for the livestock, meat and poultry industries, on April 1, 2019, the U.S. Department of Agriculture’s Agricultural Marketing Service (AMS) entered into a stipulation agreement with Park Packing Company Inc. (Park), a packer in Chicago, Ill., for alleged violations of the Packers and Stockyards (P&S) Act. Under the terms of the stipulation agreement, Park waived its right to a hearing and paid a penalty of $4,500.
An investigation conducted by AMS revealed that Park failed to timely pay for livestock purchases, totaling $115,334, from August 2018 through September 2018. Payment for all livestock is due before the close of the business day following the purchase and transfer of possession of the livestock. Failure to pay when due for livestock is a violation of the P&S Act and places livestock sellers at risk of not being paid timely or at all.
The P&S Act authorizes the Secretary of Agriculture to assess civil penalties up to $28,061 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 entering into a stipulation agreement to quickly resolve alleged violations.
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 Stuart Frank, Director, Packers and Stockyards Division, Fair Trade Practices Program, at (515) 323-2586, or by email at Stuart.Frank@usda.gov.
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