USDA Settles a Packers and Stockyards Case with J.H. Routh Packing Company

WASHINGTON, Aug. 1, 2024 - The U.S. Department of Agriculture (USDA) entered into a stipulation agreement with J.H. Routh Packing Company of Sandusky, Ohio, on July 18, 2024, for alleged violations of the Packers and Stockyards (P&S) Act. Under the terms of the stipulation agreement, Routh waived its rights to a hearing and paid a civil penalty of $14,000.<_o3a_p>

An investigation by USDA's Agricultural Marketing Service revealed that Routh failed to pay livestock sellers in accordance with its carcass merit program during the period of Feb. 11, 2022, through Dec. 13, 2022. Specifically, Routh failed to notify livestock sellers that it would deduct 12 pounds from the actual pay weight of 37,648 head of pork carcasses with heads left on that were purchased on a carcass weight basis. This deduction was a change in Routh's carcass merit program which previously included a deduction of 10 pounds from the actual weight for hog carcasses with heads left on. Prior to the formal resolution of this matter, Routh agreed to and paid $80,057 to livestock sellers because of the additional two-pound deduction.<_o3a_p>

The P&S Act authorizes the Secretary of Agriculture to assess civil penalties of not more than $34,995 for each violation of this type after notice and opportunity for a hearing on the record. USDA may offer alleged violators the option of waiving their right to a hearing and enter into a stipulation agreement to resolve the alleged violations quickly.<_o3a_p>

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.<_o3a_p>

For further information about the Packers and Stockyards Act, contact Bryice Wilke, Packers and Stockyards Division, at (515) 314-3888 or by email at [email protected].

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