Oklahoma Farm Report masthead graphic with wheat on the left and cattle on the right.
Howdy Neighbors!
Ron Hays, Director of Farm Programming Radio Oklahoma Network  |  7401 N. Kelley Ave. Oklahoma City, OK 73111  |  (405) 841-3675  |  Fax: (405) 841-3674


Agricultural News

GIPSA Files Complaint Against JBS on Underpaying Hog Producers Three Years Ago

Fri, 15 Oct 2010 6:57:21 CDT

GIPSA Files Complaint Against JBS on Underpaying Hog Producers Three Years Ago USDA has revealed that the Grain Inspection, Packers and Stockyards Administration (GIPSA) has found evidence that JBS USA, LLC underpaid hog suppliers by a total of $350,000 over 11 months in 2007.

In the complaint filed at the end of September, almost three years after the alledged violation, GIPSA noted that JBS used a Fat-O-Meat’er to calculate the lean percent of processed hogs in order to adjust carcass merit payment to hog sellers. The instrument, however, sometimes failed to obtain the proper data for a particular carcass or for the carcasses in a lot, and lean percent was not calculated for carcasses with missing data.

JBS bought hogs on a carcass merit basis, and when the lean percent data were missing, JBS substituted an arbitrary value of 49 percent, a substitution that was not disclosed to the sellers, the complaint alleges. Furthermore, hog sellers to JBS’s plants were paid an automatic discount of $1 to $2 per hundredweight for carcasses with missing Fat-O-Meat’er data, GIPSA says, and weren’t eligible for possible premiums of up to $5.30 hundredweight for those carcasses.

The difference between JBS’s lean percent value of 49 percent and the amounts it would have had to pay if it had substituted data based on the lean percent equal to the average of the remainder of the lot was an estimated $350,000 between Jan. 1, 2007, and Nov. 30, 2007.

We have an audio overview of this story- click on the LISTEN BAR below- complete with reaction from JBS Spokesman Chandler Keys, who says that JBS is working with producers and USDA to rectify this problem. He points out that this was an isolated incident and that the violation happened three years ago.


Stewart Doan offers this audio overview of this complaint brought forward by GIPSA
right-click to download mp3


WebReadyTM Powered by WireReady® NSI


Top Agricultural News

  • Wednesday, July 28, 2021 Market Wrap-Up with Justin Lewis  Wed, 28 Jul 2021 15:49:22 CDT
  • Oklahoma Grain Elevator Cash Bids as of 2:00 p.m, Wednesday, July 28  Wed, 28 Jul 2021 15:40:41 CDT
  • House Agriculture Hearing Echoes NCBA Push for More Hook Space  Wed, 28 Jul 2021 15:00:33 CDT
  • Ag Secretary Blayne Arthur Sees Two Big Hurdles for Oklahoma Beef Producers   Wed, 28 Jul 2021 15:03:43 CDT
  • Jerry Bohn of NCBA Believes Cash Cattle Trade Improving in the Southern Plains and Kansas  Wed, 28 Jul 2021 11:59:02 CDT
  • Four Years Later, EPA Has Failed to Restore 500 Million Lost RIN Gallons   Wed, 28 Jul 2021 10:57:56 CDT
  • OSU Professors Recognized by National Agricultural Organization  Wed, 28 Jul 2021 10:57:31 CDT
  • Cartridges for Cash; Merck Animal Health Supports Okahoma Cattlemen by paying for Empty Ralgro & Revalor Cartridges  Wed, 28 Jul 2021 10:56:55 CDT

  • More Headlines...


    Ron salutes our daily email sponsors!

    Oklahoma Beef council Oklahoma Ag Credit Oklahoma Farm Bureau National Livestock Credit Ag Mediation Program P&K Equipment Tulsa Farm Show Union Mutual Stillwater Milling Oklahoma Cattlemen's Association KIS FUTURES, INC.

    Our Road to Rural Prosperity sponsors!


    Search OklahomaFarmReport.com

    © 2008-2021 Oklahoma Farm Report
    Email Ron   |   Newsletter Signup   |    Current Spots   |    Program Links

    WebReady powered by WireReady® Inc.