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Better Farming Ontario Featured Articles

Better Farming Ontario magazine is published 11 times per year. After each edition is published, we share featured articles online.


JBS fined for hog payments

Sunday, April 3, 2011

In January, the U.S. Department of Agriculture fined JBS USA LLC, the nation's largest packer, US$175,000 for underpaying hog suppliers by a total of about US$350,000 in 11 months in 2007, according to a press release from the Grain Inspection, Packers and Stockyards Administration.

According to a federal charge registered in October, JBS bought hogs at several plants in Worthington, Marshalltown and Louisville based upon lean per cent as measured with an instrument that sometimes failed to produce proper data. The company substituted an arbitrary (and low) 49 per cent yield on settlement bills without disclosing the measuring failure to the sellers. Sellers were also automatically discounted $1-$2 a hundredweight and missed out on premiums of up to $5.30 a hundredweight for those carcasses.

According to the news release, $50,000 of the fine is being held in abeyance. BF

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