The U.S. Department of Agriculture's Grain Inspection, Packers and Stockyards Administration (GIPSA) has filed a complaint against JBS USA LLC for alleged violations of the Packers and Stockyards Act.
The complaint alleges that JBS used an electronic probe known as the Fat-O-Meat'er to calculate the lean percent of processed hogs to adjust carcass merit payment to hog sellers. On occasion, this meter would fail, resulting in missing data that was never accounted for. This led to reduced payments for hogs delivered to various JBS plants by an estimated $350,000 between Jan. 1, 2007 and Nov. 30, 2007.
If the allegations are proven, JBS will be ordered to cease and desist the actions resulting in the violations and will be assessed a civil penalty.