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Chick-News.com Poultry Industry News, Comments and more by Simon M. Shane

USDA to Strengthen Enforcement of the Packers and Stockyards Act

06/16/2021

It is becoming readily apparent that USDA Secretary Tom Vilsack is picking up where he left off on Inauguration Day 2017.  At this time the USDA had completed a study of contract conditions and circumstances governing the relationship of cattle producers, poultry and hog contractors with packers and integrators. 

 

Deficiencies in the food production chain were highlighted during the COVID outbreak that demonstrated that packing of red meat was a choke point in production extending from farmers to consumers. 

 

The USDA has announced that rule-making in terms of the Packers and Stockyards Act is in progress with specific attention to: -

  • Strengthening enforcement of unfair and deceptive practices, undue preferences, and unjust prejudices
  • A new poultry contractor tournament system rule will be issued
  • The rule will clarify that aggrieved parties do not need to demonstrate harm to competition in order to initiate action under the Packers and Stockyards Act

 

The USDA considers that modifying rules will “ensure fairer and more resilient markets for farmers, ranchers, and producers”.

 

With regard to the chicken industry, proposed changes to the tournament system will represent a re-evaluation of the relationship between integrators and growers necessitating new parameters to encourage compliance with best practices.

 


 
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