GIPSA Settles Case with Tyson Fresh Meats
USAgNet – 10/19/2016
The USDA’s Grain Inspection, Packers and Stockyards Administration recently entered into a Consent Decision with Tyson Fresh Meats, Inc. Tyson changed its carcass trim procedures at two of its plants without prior notification to hog producers. GIPSA inspectors noticed the change and brought the notification issued to Tyson’s attention. Tyson discontinued the new trim procedures at these plants and returned to its traditional trim method.
In Oct. 2015, prior to settlement negotiations, Tyson voluntarily compensated pork producers as a result of the temporary change in trimming procedure. GIPSA filed a complaint on Sept. 29, 2016. To resolve the complaint, Tyson agreed to cease and desist from failing to disclose, or otherwise make known to hog producers, prior to purchase, a description of the carcass trim procedure to be used in determining the weight of producer’s hogs. Tyson also paid a civil penalty of $22,500.
Tyson waived further procedure for the purpose of settling this proceeding and agreed to the entry of the Consent Decision. The Consent Decision became final and effective on Sept. 30, 2016. The Packers and Stockyards Act is a fair trade practice and payment protection law that promotes fair and competitive marketing environments for the livestock, meat, and poultry industries.