The Buzz: Central Livestock Corporation Investigation

USDA investigates South Hutchinson sale barn. Bill Spiegel 

Published on: Feb 20, 2006

Central Livestock Corporation, South Hutchinson, is being audited by USDA inspectors after several cattlemen filed complaints with the South Hutchinson police department that their checks from previous sales have bounced.

The Hutchinson News reported the story last week in its Thursday edition. Central canceled its weekly sale last week and the business is closed indefinitely.

  • Central owner Mac Frederick is trying to find a buyer for the salebarn, which he says has suffered from fewer animals being consigned by ranchers, and rising expenses. He has owned the salebarn for 11 years…

  • Frederick, who has owned the business for 11 years, blamed soaring expenses and fewer cattle plodding through the sale ring for his financial problems. He decided last week to close the business and hopes to find a buyer. According to the newspaper report, Central Livestock owes $30,000 in taxes - and more than $20,000 is delinquent…

  • The Packers and Stockyards Act of 1921 requires salebarns to carry surety bonds, the story reported. Customers owed money by Central Livestock Corp. can file against a $75,000 bond issued through the Hartford Fire Insurance Co. Paperwork can be picked up at either Central Livestock or the South Hutchinson Police Department. Claims must be filed within 60 days from the date of transaction; if more than $75,000 is claimed, parties will receive a "pro-rata distribution of funds against the total claims." Call (303) 375-4240 for information…

  • Last week, Tyson Foods, Inc. (formerly IBP), announced it would close two beef plants in Nebraska. The processing plant in Norfolk and slaughter plant in West Point employ more than 1,600 workers. Production will be shifted to its remodeled Dakota City, Neb., plant…

  • Some of the workers displaced by the closure will be offered jobs in Dakota City, or at the Tyson plants in Lexington, Neb. or Emporia, Kan….

  •  Speaking of beef, the USDA has released a report on its investigation into the shipment of ineligible veal from the U.S. to Japan, which was reported Jan. 20. The USDA notes that the beef shipment, which contained spinal tissue, posed no risk to human health. However, the report concludes that mistakes were made by the plant shipping the product, and by USDA inspection personnel…

  • It concluded that Food Safety and Inspection Service employees at the plant in New York were not sufficiently aware of the Agricultural Marketing Service Export Verification program and should not have approved the shipment to Japan…

  • USDA will beef up training of its employees to assure similar mistakes don't happen again. Japan had just opened its borders to U.S. beef about a month prior to the incident for the first time since Dec. 23, 2003. U.S. beef producers have lost millions of dollars in beef exports as a result…

  •  Lastly, retired Kansas State University animal scientist John Brethour will be honored at the university's annual Stockman's Dinner, March 2. Brethour pioneered the use of ultrasound to predict animal harvest timing. The dinner will be held at the Kansas Farm Bureau headquarters; tickets can be obtained by calling (785) 532-7536.  
Please provide the answer to the following question:

 =