The U.S. Department of Agriculture reached a consent decision with Beltex Corp. doing business as Frontier Meats, also known as Frontier Packing Co., Arlington, Texas, and Eric Nauwelaers, director and president of Frontier Meats, on Aug. 7, 2024, for violations of the Packers and Stockyards Act.

An investigation by USDA’s Agricultural Marketing Service revealed that between Sep. 3 and Oct. 2, 2019, Frontier Meats and Nauwelaers failed to pay for livestock purchased from ten livestock sellers. Additionally, Frontier Meats and Nauwelaers issued two checks for eight livestock purchases that were returned unpaid because of insufficient funds in the bank account.

Under the decision, Frontier Meats and Nauwelaers agreed to cease failing to pay in full, failing to pay timely and issuing payments for livestock purchases with insufficient funds in their bank account. They paid a $10,000 civil penalty. They also agreed not to engage in the business of buying livestock in commerce for slaughter in the future. If Frontier Meats and Nauwelaers, individually or jointly, engage in purchasing livestock for slaughter again, they agree to pay an additional $115,000 civil penalty.

The P&S Act requires subject entities to issue 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 and failure to issue the full payment for purchases is an unfair trade practice and a violation of the P&S Act.

The P&S Act authorizes the secretary of agriculture to initiate actions to seek various sanctions, including orders to cease and desist from continuing violations, suspensions of registrations where applicable and other remedies as authorized and appropriate under the act.

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.

Source: USDA