The U.S. Department of Agriculture (USDA) reached a consent decision and entered into a stipulation agreement with ZMDR LLC, doing business as Republic Foods (Republic) of Lone Jack, Missouri, on Dec. 29, 2022, and Jan. 3, 2023, respectively, for alleged violations of the Packers and Stockyards (P&S) Act.

An investigation by USDA’s Agricultural Marketing Service (AMS) revealed Republic failed to comply with the payment terms of credit agreements with any livestock seller with whom they had trust waivers. Payment for 309 head of livestock in 19 livestock transactions from July 24, 2020, through Oct. 14, 2020, were paid up to 134 days late, and Republic failed to have its monorail scale tested in the first half of 2022.

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 test livestock scales used in commerce at least once between Jan. 1 and June 30, and at least once again between July 1 and Dec. 31, with a minimum period of 120 days between tests. Failure to timely pay for livestock purchases and test scales used in commerce are violations of the P&S Act.

Under the consent decision, Republic was ordered to cease and desist from failing to pay, when due, the full purchase price of livestock, failing to comply with the payment terms of credit agreements with livestock sellers and failing to define payment terms in credit agreements clearly. Under the terms of the stipulation agreement for failing to test its monorail scale, Republic waived its rights to a hearing and paid a civil penalty of $750.

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