JBS Has Limited Time To Reply to GIPSA ComplaintThu, 14 Oct 2010 17:00:19 CDT
JBS USA, LLC has until next Wednesday to reply to a complaint brought buy USDA’s Grain Inspection, Packers and Stockyards Administration that JBS purchased hogs on a carcass merit basis, provided inaccurate accounting to hog sellers, and substituted an arbitrary lean value for many of the hogs purchased. In the complaint, filed on September, 30th, GIPSA said this action reduced payments to hog sellers who sold 16 lots of hogs within less than a year’s time by an estimated 350-thousand dollars.
If the allegation proves correct, and if each of the 16 lots of hogs was separately owned by 16 independent hog producers, then the loss alleged in the complaint represents an average loss per hog producer of nearly 22-thousand dollars. R-CALF USA CEO Bill Bullard points out - for a family sized hog operation, this amount of loss could well mean the end of their ability to stay in business.
According to R-CALF USA Marketing Committee Chair Dennis Thornsberry, - this GIPSA complaint provides a perfect and timely example of why the proposed GIPSA competition rule is vitally important to prevent packers like JBS from exacting financial harm on individual U.S. livestock producers or small groups of U.S. livestock producers.
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