Source: Lisa M. Keefe, MEATINGPLACE, 7/26/11

The USDA's Grain Inspection, Packers and Stockyards Administration (GIPSA) entered into a consent decision with John Morrell & Co. over the company's failure to disclose that it was using substitute data for calculations of how much it paid sellers for their hogs.

The company has agreed to cease and desist:
• Failing to disclose when missing data has prevented Morrell from calculating the lean percent of a particular carcass or carcasses in a seller's lot; and
• Substituting an undisclosed lean value for carcasses with missing data when calculating carcass-merit payments for hogs delivered to Morrell's processing plants.

GIPSA assessed Morrell a civil penalty in the amount of $162,500, of which $37,500 will be held in abeyance until Morrell identifies underpaid sellers and makes restitution.

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