GIPSA Alleges National Beef Packing Company, LLC Paid Producers on Inaccurate Premiums and Failed to Disclose Freight Charge
WASHINGTON, January 28, 2008 - The U.S. Department of Agriculture's Grain Inspection, Packers and Stockyards Administration has found evidence that National Beef Packing Company, LLC (National Beef), Kansas City, Missouri:
- Deducted a $.75 cwt freight charge in grid-based pricing calculations and did not disclose to livestock sellers that the freight charges were being deducted;
- From December 18, 2005 through December 24, 2005, used inaccurate Prime and CAB premium price numbers which resulted in underpayments to some producers whose cattle were priced from December 27, 2005 through January 21, 2006; and
- From December 27, 2005 through January 21, 2006, paid livestock sellers delivering cattle to National Beef's plants in Dodge City, Kansas and Liberal, Kansas, $18,775.39 less than they would have received for their cattle.
On December 21, 2007, GIPSA filed a complaint against National Beef. If the allegations are admitted, or proven in an oral hearing, National Beef may be ordered to cease and desist from violating the Packers and Stockyards (P&S) Act and assessed a civil penalty.
National Beef is a packer. It currently buys livestock in commerce for the purposes of slaughter.
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.
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Catherine M. Grasso 202-720-7201
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