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, for alleged violations of the Packers and Stockyards (P&S) Act. Under the terms of the stipulation agreement, IMP waived its rights to a hearing and paid a civil penalty of $975.

An investigation by USDA’s Agricultural Marketing Service (AMS) revealed IMP failed to timely pay for 17 livestock purchases from August 2021 through April 2022. IMP paid up to 20 days late for a total of 559 head, valued at $140,747.

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 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 a 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 Kraig Roesch, Packers and Stockyards Division, at (202) 720-7051 or by email at kraig.roesch@usda.gov.

Source: USDA