WASHINGTON, Aug 15, 2022 – The U.S. Department of Agriculture (USDA) entered into a stipulation agreement with Mohamed Mesallem and Islamic Meat and Poultry, Inc. (IMP) of Stockton, CA, on June 28, 2022, for alleged violations of the Packers and Stockyards (P&S) Act. Under the terms of the stipulation agreement, IMP waived their rights to a hearing and paid a civil penalty of $975.
An investigation by USDA’s Agricultural Marketing Service (AMS) found that IMP violated the prompt payment provisions of Section 409 of the Packers and Stockyards Act. Livestock purchase transactions dated August 13, 2021, through April 13, 2022, show 559 head purchased for $140,747.21 and was paid up to 20 days late.
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 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 $29,616 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 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, Packers and Stockyards Division, at (202) 720-7051, or by email at Stuart.Frank@usda.gov.
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