Public Affairs
WASHINGTON, Aug 17, 2020 – As part of its commitment to ensuring fair and competitive markets for the livestock, meat and poultry industries, on July 15, 2020, the U.S. Department of Agriculture (USDA) entered into a stipulation agreement with Beken Livestock Inc. of Texas for alleged violations of the Packers and Stockyards (P&S) Act. Under the terms of the stipulation agreement, Beken Livestock Inc. waived its right to a hearing and paid a penalty of $7,900.
An investigation by USDA’s Agricultural Marketing Service (AMS) revealed that between August 8 and Oct. 11, 2019, in 19 transactions, Beken Livestock Inc. failed to pay five markets timely for 171 head of livestock totaling $62,681. It also disclosed that Beken Livestock Inc. issued one check returned for insufficient funds.
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 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 $29,270 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 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 Stuart Frank, Packers and Stockyards Division, at (515) 323-2586, or by email at stuart.frank@usda.gov.
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