WASHINGTON – The Agricultural Marketing Service (AMS) reached a consent decision with JBS USA Food Company, also known as Swift Beef Company (JBS Swift), Greeley, Colo., for alleged violations of the Packers and Stockyards (P&S) Act. The consent decision was signed by Acting Chief Administrative Law Judge, Channing D. Strother, on November 21, 2018.
AMS conducted an investigation that revealed JBS Swift failed to maintain the identity of beef carcasses purchased on a hot weight basis to ensure accurate payment to livestock sellers at its Grand Island, Neb., facility. During the period of December 14, 2017 through March 31, 2018 JBS Swift failed to record accurately the weights, grades and prices of carcasses on accountings issued to sellers.
JBS Swift was notified of such violations and immediately took corrective action by making adjustments to its carcass tracking procedures and computer software. Under the consent decision, JBS Swift agreed to remit amounts owed to livestock sellers resulting from the inaccurate recording of weights, grades, and prices of carcasses. In addition, the consent decision ordered JBS Swift to pay a $50,000 civil penalty, and to cease and desist from:
- Failing to properly maintain the identity of each seller’s livestock and the carcasses therefrom;
- Failing, after determination of the amount of the purchase price, to transmit or deliver to the seller or his duly authorized agent a true written account of such purchase showing the number, weight and price of the carcasses of each grade (identifying the grade) and of the ungraded carcasses, an explanation of any condemnations and any other information affecting final accounting; and
- Failing to maintain sufficient records to substantiate the settlement of each transaction.
The Packers and Stockyards Division, which is in the AMS Fair Trade Practices Program, administers the P&S Act, 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, Fair Trade Practices Program, Packers and Stockyards Division, at (515) 323-2586, or by email at stuart.frank@usda.gov.
