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Those Were The Good Ole Days!

Mike

Well-known member
USDA Charges Excel Corporation Violated Packers And Stockyards Act


WASHINGTON, DC, April 9, 1999-- Agriculture Secretary Dan Glickman announced today that USDA has filed a complaint against Excel Corporation alleging that the company underpaid more than 1250 farmers by about $1.8 million in violation of the Packers and Stockyards Act.


"To remain competitive and to survive, America's small- and medium-size producers need a level playing field," said Glickman. "Today's action demonstrates how seriously we at USDA take our responsibility for ensuring that level playing field. We simply will not tolerate unfair and deceptive trade practices."


The complaint, brought by USDA's Grain Inspection, Packers and Stockyards Administration, alleges that Excel failed to notify hog producers that it changed the method of calculating lean percent of hogs. Excel uses lean percent to compute the purchase price it pays farmers for hogs that it buys on a carcass merit basis.


According to the complaint, as a result of the undisclosed formula change, Excel paid lower prices for more than 19,900 lots of hogs that it purchased on a carcass merit basis. The complaint stems from a routine compliance investigation into Excel's hog purchases during late 1997 and early 1998. That investigation revealed violations of the Packers and Stockyards Act, a fair trade practice and payment protection law.


The complaint was filed with the office of USDA's hearing clerk. Excel, a subsidiary of Cargill, Inc., will have an opportunity to respond to the complaint and request an oral hearing.


Glickman said USDA has become increasingly concerned about ensuring the integrity and competitiveness of livestock markets -- and the need to protect smaller producers from unfair trade practices. He has restructured GIPSA's Packers and Stockyards Program, strengthening its economic and legal expertise to enhance USDA's ability to monitor and investigate livestock transactions.
 

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