The U.S. Department of Agriculture (USDA) entered into a stipulation agreement with Cabritos Garza Corp. (Cabritos), of Humble, Texas, on Jan. 5, 2023, for alleged violations of the Packers and Stockyards (P&S) Act. Under the terms of the stipulation agreement, Cabritos waived its rights to a hearing and paid a civil penalty of $2,000.

An investigation by USDA’s Agricultural Marketing Service (AMS) revealed Cabritos failed to timely pay for 17 livestock purchases from August 2021 through December 2021. Payments were up to 26 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. It also requires subject entities to keep and maintain records that accurately disclose the full nature of the transaction. Failure to timely pay for livestock purchases and failing to properly maintain records are violations of the P&S Act.

The P&S Act authorizes the secretary of agriculture to assess civil penalties up to $31,459 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 entering 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 303-375-4291 or by email at Kraig.Roesch@usda.gov.

Source: USDA's AMS