AB Livestock also reimburses state $15,000 for its costs

By MATTHEW WEAVER

Capital Press

Feedlot operator AB Livestock agreed July 8 to pay a $20,000 penalty stemming from a "paperwork error" that led to the improper importation of cattle from Canada to Washington state.

The Washington State Department of Agriculture and the company reached the settlement in which the company will pay a $20,000 penalty and reimburse the agency $15,000 for its expenses, a department press release said.

Department officials allege AB Livestock violated state animal import regulations when in May 2009 it trucked 402 head of Canadian cattle to rangeland in and not to the restricted feedlot in Moses Lake, Wash., that was listed on import documents.

Officials of AB Livestock, a division of Boise-based Agri Beef Co., dispute the department's finding but agreed to the penalty and additional department oversight to settle the matter.

"It's a business decision," Rick Stott, executive vice president of AB Livestock, told the Capital Press. "Our focus is to resolve the issue, be able to move on and work closely with the Department of Ag to make it into a better place from a regulatory and oversight standpoint."

The company has no plans to appeal the finding, Stott said.

In addition to the penalty, Stott said the company had more than $35,000 in expenses.

"We've been very open and frank about the fact this was a paperwork error that we regret," he said. "This cooperative agreement is really a benchmark for the industry and best practices to try to avoid those kind of mistakes in the future."

Jason Kelly, director of communications for the department, said the settlement is the largest penalty the Animal Services Division has issued in Washington State Veterinarian Leonard Eldridge's tenure, which began in 2004.

The fine was determined by the cost of the investigation and a penalty "matrix" that was used in negotiations, Kelly said.

The department tested 398 head of cattle and found no evidence of contagious diseases. Three animals died on the rangeland. One has not been recovered and is presumed dead, according to the department press release.

Stott said there were never any health risks or violations of animal health regulations. The company agreed to work with the department through the entire process out of "an abundance of caution" and a spirit of cooperation, which it intends to continue, he said.

Kelly said state officials were pleased with AB Livestock's cooperation, as well as its agreement that more oversight is needed.

"The cooperation of the firm was instrumental in ensuring all the animals were collected and tested," he said.

An official of the Cattle Producers of Washington, an organization critical of cattle imports, was unhappy with the outcome. Because the department receives most of its operating funds directly from cattlemen, "AB Livestock partially reimbursed the livestock industry and nothing more," organization president Wade King said.

Stott said AB Livestock will work with the department and industry to implement a higher level of traceability for all cattle coming in and out of Washington, identifying areas to use technology and systems approaches that work from business and regulatory standpoints.

AB Livestock has also agreed to more oversight of its cattle feeding operations, according to the press release. WSDA will perform frequent record checks on animals received at feedlots and make unannounced feedlot inspections to verify the proper receipt of cattle shipments.

Online

Agri Beef: www.agribeef.com

Washington State Department of Agriculture: http://agr.wa.gov