Release No.: 043-19
WASHINGTON, April 17, 2019 – On March 26, 2019, Mahan Packing Co Inc. waived its right to a hearing, entered into a stipulation agreement with the U.S. Department of Agriculture (USDA) and paid a penalty of $600 for an alleged violation of the Packers and Stockyards (P&S) Act.
The USDA’s Agricultural Marketing Service (AMS) investigation on October 16, 2018 revealed that Mahan Packing Co Inc. failed to establish a tare weight that included only the weight of the trolleys while also failing to use trolleys that were uniform in weight. The average weight of a trolley was 7.35 pounds. Two trolleys make up the tare weight. The average tare weight is 14.70 pounds. Mahan was using a 15 pound tare, taking an average of 0.30 pounds from each carcass.
The P&S Act authorizes the Secretary of Agriculture to assess civil penalties up to $28,061 per violation against any person after notice and opportunity for hearing on the record. USDA may offer alleged violators the option of waiving their right to a hearing and entering into a stipulation agreement to quickly resolve alleged violations.
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.
For further information about the Packers and Stockyards Act, contact Stuart Frank, Director, Packers and Stockyards Division, Fair Trade Practices Program, at (515) 323-2586, or by email Stuart.Frank@usda.gov.
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