[Code of Federal Regulations]

[Title 9, Volume 2]

[Revised as of January 1, 2007]

From the U.S. Government Printing Office via GPO Access

[CITE: 9CFR203.19]



[Page 59]

 

                  TITLE 9--ANIMALS AND ANIMAL PRODUCTS

 

  CHAPTER II--GRAIN INSPECTION, PACKERS AND STOCKYARDS ADMINISTRATION 

      (PACKERS AND STOCKYARDS PROGRAMS), DEPARTMENT OF AGRICULTURE

 

PART 203_STATEMENTS OF GENERAL POLICY UNDER THE PACKERS

AND STOCKYARDS ACT--Table of Contents

 

Sec. 203.19  Statement with respect to packers engaging in the business of livestock dealers or buying agencies.



    (a) In its administration of the Packers and Stockyards Act, the 

Grain Inspection, Packers and Stockyards Administration (Packers and 

Stockyards Programs) has sought to prevent conflicts of interest and to 

maintain open and fair competition in the livestock and meat packing 

industries. The ownership or operation of livestock dealers or buying 

agencies by packers, under some circumstances, may result in violations 

of the Packers and Stockyards Act.

    (b) Traditionally, livestock dealers and buying agencies purchase 

livestock for resale or to fill orders for farmers, ranchers, producers, 

other livestock firms and packers. When a livestock dealer or buying 

agency is owned or operated by a packer, and when such packer is also 

buying livestock for its own operational requirements, there is a 

potential conflict of interest. Furthermore, the purchase and sale of 

livestock by meat packers may result in control of markets and prices 

which could adversely affect both livestock producers, competing 

packers, and consumers.

    (c) Arrangements between packers and dealers or buying agencies 

which do not normally create a conflict of interest or result in a 

restraint of competition include:

    (1) Operations utilizing different species or classes of livestock; 

(2) operations where the business activities are widely separated 

geographically; and (3) operations where tie-in purchases or sales are 

not involved. Packers contemplating engaging in the business of a 

livestock dealer or a buying agency are encouraged to consult with the 

Grain Inspection, Packers and Stockyards Administration (Packers and 

Stockyards Programs) prior to the commencement of such activities.

    (d) In the event a packer/dealer or a packer/buying agency 

arrangement appears to give rise to a violation of the Act, an 

investigation will be made on a case-by-case basis and, where warranted, 

appropriate action will be taken.



(Approved by the Office of Management and Budget under control number 

0580-0015)



(7 U.S.C. 228, 228b, 222, 15 U.S.C. 46)



[49 FR 32845, Aug. 17, 1984; 54 FR 26349, June 23, 1989, as amended at 

68 FR 75388, Dec. 31, 2003]