USDA Settles a Packers and Stockyards Case against Dennis Kolb Dairy Sales Inc.

WASHINGTON, April 17, 2024 - The U.S. Department of Agriculture (USDA) entered into a stipulation agreement with Dennis Kolb Dairy Sales Inc. of Landisville, Pa., on Feb. 13, 2024, for alleged violations of the Packers and Stockyards (P&S) Act. Under the terms of the stipulation agreement, Dennis Kolb Dairy Sales Inc. waived their rights to a hearing and paid a civil penalty of $12,600.

An investigation by USDA's Agricultural Marketing Service (AMS) revealed that between March 2023 and July 2023, Dennis Kolb Dairy Sales Inc. failed to pay timely on 18 livestock purchases totaling $96,360. Payments were up to 40 days late.

The P&S Act requires subject entities to issue the full payment for livestock by the close of the first business day following purchase and transfer of possession. Failure to timely pay for livestock purchases is a violation of the P&S Act.

The P&S Act authorizes the Secretary of Agriculture to assess civil penalties up to $33,896 per violation against any person 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.

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.

For further information about the Packers and Stockyards Act, contact Amy Blechinger, Packers and Stockyards Division, at (202) 720-7051 or by email at [email protected].

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