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Tallgrass Beef Fined $402,816.53 by GIPSA

08 November 2012

US – The US Department of Agriculture’s Grain Inspection, Packers and Stockyards Administration has fined a Kansas beef procesor for breaking the rules over livestock buying.

Tallgrass Beef Company LLC based in Sedan, Kansas has been censured for failing to pay, when due, the full purchase price of livestock.

The company has also been told to stop engaging in the business of a packer when its financial condition does not meet the requirements of the Packers and Stockyards (P&S) Act and engaging in the business of a packer without maintaining a bond or bond equivalent.

Tallgrass has been fiuned a total of $402,816.53.

The civil penalty will be reducible dollar-for-dollar by restitution made by Tallgrass to its unpaid livestock suppliers, up to a total reduction of $352,816.53.

If Tallgrass fails to satisfy the terms of the Understanding, the remaining civil penalty, for which restitution has not been made, will become due in full immediately, upon application of GIPSA to the Administrative Law Judge, without further procedure.

If Tallgrass satisfies the terms of the Understanding, Tallgrass will request that the Administrative Law Judge issue an order reducing the civil penalty dollar-for-dollar for restitution made.

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.

TheMeatSite News Desk

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