Public Affairs Office
WASHINGTON, Feb. 13, 2024 – The U.S. Department of Agriculture (USDA) reached a consent decision with Cargill Meat Solutions Corporation (Cargill) of Wichita, Kan., on Feb. 5, 2024, for violations of the Packers and Stockyards (P&S) Act.
An investigation by USDA’s Agricultural Marketing Service (AMS) was initiated in March 2022 when Cargill self-reported that its beef grading cameras were installed incorrectly, resulting in inaccurate yield grades at its four fed cattle plants. The investigation revealed that Cargill applied inaccurate yield grades to 324,824 carcasses that it purchased on a carcass grade and weight basis from August 2021 to March 2022, resulting in an underpayment of $12,514,804 to cattle sellers. Cargill compensated all sellers for any underpayment in May 2022 using corrected yield grades.
Under the consent decision, Cargill must cease and desist from failing to meet applicable camera grading installation standards as established by the National Institute of Standards and Technology at its cattle processing plants and from compensating sellers based on inaccurate grading. In addition, Cargill was assessed a civil penalty of $155,000.
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 Bryice Wilke, Packers and Stockyards Division, at (515) 314-3888 or by email at Bryice.A.Wilke@usda.gov.
#
USDA touches the lives of all Americans each day in so many positive ways. In the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov.
Get the latest Agricultural Marketing Service news at www.ams.usda.gov/news or follow us on Twitter @USDA_AMS. You can also read about us on the USDA blog.
USDA is an equal opportunity provider, employer, and lender.