United States-Cattle payment problems.

CATTLE DEALERS IN TROUBLE.

There have been rumors for a few months, about cattle company North Star Beef Inc, delaying payments for cattle purchased, over and above their agreed terms of credit with suppliers. The matter became worse in September, when cheques were returned unpaid by their bankers.

The company based in Buffalo Lake Minn, are one of the largest suppliers of Kosher beef to New York, and one would have assumed prospering, since the demise of the worlds largest Kosher beef plant at Postville.

USDA’s Grain Inspection Packers and Stockyards Administration, has filed complaints against the company and one of the owners Bill Gilger.

The company allegedly owe $2.5 million to cattle dealers and farmers, for livestock supplied.

A lesson could be learned from the beef and cattle industry in Argentina.

1) Should a company bounce a cheque the Central Bank freeze the account.

2) Should a meat plant owe money for cattle, they can apply for an immediate embargo on the bank for the equivalent amount until the matter settled in court.

Prevention is far better than cure, the trading risks are far to high for anyone to do anything untoward