Missouri Packer Must Process Niman Ranch Cattle, Judge Rules

Missouri Prime Beef Packers must process cattle supplied by Niman Ranch in accordance with a previously executed agreement between the companies. That’s the decision handed down Thursday by U.S. District Judge M. Douglas Harpool of the Western District of Missouri.

Missouri Prime entered a contract in February 2021 with Niman Ranch to process and fabricate cattle into wholesale cuts. The contract, which expires in January 2024, allowed either party to terminate the agreement early with at least 90 days' written notice. However, Missouri Prime emailed Niman Ranch on Dec. 14 stating that it could no longer process the ranch's cattle starting Jan. 3 if the company wanted to remain solvent.

Niman Ranch responded by asking Missouri Prime to honor its agreement and provide 90 days' notice before termination, but Missouri Prime refused. On Dec. 28, according to court documents, Niman Ranch said it would still send 40 cattle for processing, but Missouri Prime said it could not process the cattle “until approval” from Nextgen Cattle Company LLC, which was not a party to their contract and is a Niman Ranch rival, the court documents said.

Niman Ranch filed suit against both Missouri Prime and Nextgen Cattle in state court on Jan. 6 claiming breach of contract and interference by Nextgen. Niman sought a temporary restraining order, arguing that it did not have enough time to find a new meat processor and that without an injunction, consumers, ranchers and its network of 22 food service distributors could be irreparably harmed by the alleged contract breach.

Judge Harpool, in an 11-page order, granted Niman Ranch's request, ordering Missouri Prime to process Niman Ranch's cattle, pay a $5,000 bond and comply with the 90-day notice period in the contract.

"The Court is satisfied that, absent injunctive relief, Niman Ranch may suffer irreparable harms to its goodwill, reputation and to agreements with other entities," the judge wrote. "Government regulations and requirements, among other hurdles, make it impossible for Niman Ranch to replace Missouri Prime's processing obligations in a shorter time frame than the required contractual notice period."

Niman Ranch, which was purchased by Perdue Farms in 2015, operates an Angus grass-fed program and is the largest farmer and rancher network in North America to be Certified Humane, according to court documents.