In re: 

UNITED ST ATES DEPARTMENT OF AGRTCUL TURE 

BEFORE THE ADMINISTRATOR 

FOOD SAFETY AND INSPECTION SERVICE 

Komperda Processing and 

Keny Komperda 

Respondents 

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STIPULATION AND 

CONSENT AGREEMENT 

This administrative action was instituted on November 17, 2017, when the Food Safety and 

Inspection Service ("PSIS") of the United States Department of Agriculture ("USDA") 

("Complainant") issued a Notice of Ineligibility for Custom Exempt Status letter to Komperda 

Processing and Mr. Kerry Komperda, ("Respondents"), notifying them that they were no longer 

eligible to conduct custom exemption slaughter operations under the Federal Meat Inspection Act 

(FMIA) {21 U.S.C. §601 et�-) and the regulations promulgated thereunder. The Notice of 

Ineligibility that was hand-delivered by FSIS personnel was effective upon receipt, and was 

issued due to Respondents' alleged failure to maintain their facility in a sanitary manner and 

protect product from becoming adulterated. 

The aforementioned action was instituted by FSTS in accordance with Section 23(a) of the 

FMIA (21 U.S.C. §623(a)), Part 303 of the Federal Meat Inspection Regulations Title 9, Code of 

Federal Regulations (9 C.F.R. §303.1 et seg_.), and Part 416 of the Sanitation Regulations (9 C.F.R. 

§416 et seq.).

As provided under the Adopted Rules of Practice, the parties have agreed that this 

administrative proceeding should be terminated by the execution of this Stipulation and Consent 

Agreement, ("Agreement"), set forth below and have agreed to the following stipulations: 

1. For the purpose of this Agreement and the provisions of this Agreement only,
Respondents admit the jurisdictional allegations of the above-mentioned Notice oflneligibility and 

both parties waive: 

(a) any further procedural steps in this proceeding;

(b) any requirements that the Stipulation and Consent Agreement in this proceeding contains

findings and conclusions with respect to fact or law, as well as to reason and basis thereof; and 

(c) all rights to seek further judicial review or otherwise challenge or contest the validity of

this Stipulation and Consent Agreement. 

2. This Stipulation and Consent Agreement is for settlement purposes in this proceeding

only, and does not otherwise constitute an admission or denial by Respondents that they have 

· violated any Federal regulation or statute.

3. Respondents waive any action against USDA under the Equal Access to Justice Act of

1980 (5 U.S.C. 504 et�-) for fees or other expenses incurred in connection with this proceeding, 

and any other action against the USDA and its employees in connection with this proceeding and the 

facts and events that gave rise to this proceeding. 

FINDINGS OFF ACT 

1. Respondent Komperda Processing is now, and was at all times material herein, located at 548

East Van Buren Road, Alma, MI 48801. 

2. Respondent Komperda Processing is now, and was at all times material herein, a custom

exempt operation under Section 23(a) of the FMIA, at its place of business in Alma, Michigan. 

3. Respondent Kerry Komperda is now, and was at all times material herein, the owner of

Komperda Processing and is responsibly connected to Komperda Processing. 

4. Komperda Processing and Kerry Komperda operated under the custom exemption eligibility,

pursuant to Section 23(a) of the FMIA, and applicable federal meat inspection (9 C.F.R. Part 303. l ), and 

sanitation (9 C.F .R. Part 416) regulations. 

5. In a Notice oflneligibility letter delivered on November 17, 2017, Respondents were

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notified that they were no longer eligible to operate under the custom exempt provisions of the FMIA 

because of violations of sanitation, facility, recordkeeping, and other requirements, as required by 9 

C.F.R. Parts 303, and Part 416.

CONCLUSION 

As the Parties have agreed to the provisions set forth in the following Agreement in disposition 

of this proceeding, the following Agreement will be issued. 

AGREEMENT 

Custom exempt Livestock and slaughter and meat processing privileges under 9 C.F.R. Part 

303, promulgated under the FMIA (21 U.S.C. §623), are terminated from Komperda Processing and 

Kerry Komperda, and its owners, officers, directors, partners, successors, affiliates, or assigns, directly 

or through any corporate device, for a period of three (3) years. This termination of exemption privileges 

shall be held in abeyance and custom exemption privileges shaU be provided to Respondents, pursuant 

to Section 23 (a) of the FMJA, and 9 C.F.R. Parts 303, and 416, provided all statuto1y and regulatory 

requirements and the additional conditions set forth in this Agreement are met. This Agreement shall 

remain in effect for a period of three (3) years after the date of the "Exempt Establishment Review 

Report," FSIS Form 5930-1, with findings of"acceptable" in every category. 

CONDITIONS 

1. Prior to the reinstatement of custom exemption privileges, and subject to verification and

a satisfactory determination by FSIS, Respondents shall demonstrate compliance with the FSIS 

statutory and regulatory requirements including, but not limited to, 9 C.F.R. Parts 303, and 416, 

dw·ing a facility review by FSIS and its' examination of (a) Respondents' written operational 

procedures and other programs, and (b) of the physical and sanitary conditions of Respondents' 

facility. 

2. Prior to the reinstatement of custom exemption privileges, and subject to verification by

FSIS, Respondents shall address and repair any premises, facility, and/or equipment issues identified 

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by FSIS at the time of the facility review conducted pursuant to paragraph 1 of this Agreement. 

3. Prior to the reinstatement of custom exemption privileges, and subject co verification by FSIS,

Respondents' facility shall receive an "acceptable" rating in every category ofFSIS' "Exempt 

Establishment Review Report," FSIS Form 5930-1. 

Sanitation Performance Standards (SPS} 

4. Prior to reinstatement of custom exemption privileges, and subject to verification by FSIS,

Respondents shall: 

(a) develop writ

ten procedures for monitoring and identifying sanitation noncompliance, for 

developing and taking corrective and preventative actions if there is a noncompliance, and maintaining 

proper recordkeeping; and 

(b) comply with the Sanitation Performance Standards (SPS) regulatory requirements specified

in 9 C.F .R. Parts 416. l through 416.5 in order to receive an acceptable rating. 

5. Upon reinstatement of custom exemption privileges, and subject to verification by FSTS,

Respondents shall: 

(a) comply with the requirements of the SPS regulations (9 C.F.R. Parts 416.1 to 416.5);

(b) operate and maintain, ac all times, the establishment, including ics facilities, equipment, and

inside and outside premises, in a manner sufficient to prevent the creation of insanitary conditions and 

practices; 

( c) ensure that meat and meat food products are stored, prepared, and packaged so as not to

become contaminated or adulterated; and 

( d) assess their written SPS procedures to evaluate their effectiveness, and make necessaiy

improvements, corrective actions, and repairs to the facility buildings, structures, rooms, and 

compartments to ensure that they are kept in good repair, and are of sufficient size to allow for 

processing, handling, and storage of product in a manner to ensure and maintain sanitary conditions. 

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Pest Management Program 

6. Prior to the reinstatement of custom exemption privileges, and subject to verification by

FSIS, Respondents shall develop a written pest management program to prevent the harborage and 

breeding of pests within the facility and on its grounds consistent with 9 C.F .R. Parts 416.2 (a) and 

(b) to ensure that:

(a) Respondents review the facility and grounds on at least a weekly basis for any signs of

rodent and insect presence and activity; and 

(b) Respondent contracts with an independent third party company to provide pest control

services to the Respondent's facility and grounds on at least a monthly basis; and 

( c) Respondents provide written reports to Director, Office of Investigations, Enforcement,

and Audit, Enforcement and Litigation Division (ELD), detailing their findings, corrective actions, 

and recommendations based on their review and service of the facility and grounds for any signs of 

rodent and insect presence and activity. 

7. Upon the reinstatement of custom exemption privileges, and subject to verification of

FSIS, Respondents shall implement and maintain their pest control program in accordance with the 

stipulations contained in paragraph 6, and in a manner sufficient to prevent the creation of insanitary 

conditions and practices, to prevent the harborage and breeding of pests, and to ensure that meat and 

meat food products are stored, prepared, and packaged so as not to become contaminated or 

adulterated. 

Sanitation Standard Operating Procedures (SSOP) 

8. Prior to the reinstatement of custom exemption privileges, and subject to verification by

FSIS, Respondents shall develop a written SSOP to describe the monitoring activities, recordkeeping, 

and other procedures that Respondents will conduct, implement, and maintain on a daily and ongoing 

basis before, during, and after operations, in accordance with 9 C.F .R. Parts 416.11 to 416.16, to ensure 

sanitary conditions and prevent product adulteration. 

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9. Upon the resumption of custom exemption privileges, and subject to verification of FSIS,

Respondents shall implement, conduct, and maintain on a daily and ongoing basis their SSOP system as 

required by 9 C.F.R. 416.11 to 416.16 to ensure sanitary conditions and prevent product adulteration. 

Planned Improvement Plan {PIP) 

10. Prior to the reinstatement of custom exemption privileges, and subject to verification

by FSIS, Respondents shall develop a PIP designed to identify and correct noncompliance and to 

ensure that the entire structure of the facility, to include its rooms and compartments, is of sound 

construction and that all equipment is maintained in proper working order and kept in good repair. 

11. Upon the reinstatement of custom exemption privileges, and subject to verification by

FSIS, Respondents shall implement and maintain their PIP as required in this Agreement and 

document any findings and corrective actions to address structural and mechanical repairs and 

improvements to their facility and make these records available to FSIS for review and copying 

upon request. 

Sewage and Waste Disposal 

12. Prior to the reinstatement of custom exempt privileges, and subject to verification by

FSIS, Respondents shall have a sewage waste disposal system in place that properly removes sewage 

and waste materials to prevent the adulteration of food products consistent with 9 C.F.R. 

303.l(a)(2)(i), and416.2{e) and(t).

13. Upon reinstatement of custom exempt privileges, and subject to verification by FSIS,

Respondents shall maintain the sewage and waste disposal systems to prevent the adulteration of food 

products. If the sewage disposal system is a private system requiring approval by a State or local health 

authority, Respondents must furnish FSIS with a letter of approval from that authority upon request as 

required 9 C.F.R. 416.2 {e) and (f). 

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Record keeping 

14. Respondents shall properly label and maintain full, complete, and accurate vvritten records of

all business activities applicable to the FMIA, as specified in 9 C.F.R. 303. l(b)(3), 309.3, and 320. 

Respondents shall make all such records available for review and copying upon request of any authorized 

representative of the Secretary of Agriculture. Respondents shall maintain such records for a period of 

three years after December 31 of the year in which the record was made, in accordance with 9 C.F.R. 

320.3. 

Specified Risk Materials 

15. Prior to the reinstatement of custom exemption privileges, and subject to ve1ification by

FSIS, Respondents shall develop a written Specified Risk Materials (SRM) control program for cattle, to 

include daily records sufficient to document procedures for the removal, segregation, and disposition of 

SRM. The program shall also include procedures indicating ages of slaughtered cattle (less than 30 month 

or 30 months of age and older) and the handling and removal of non-ambulatory disabled cattle ( downer) 

at their facility. 

16. Upon the reinstatement of custom exemption privileges, and subject to verification by FSIS,

Respondents shall implement and maintain, on a daily and on-going basis, their written SRM control 

program. 

Management and Training 

17. Prior to reinstatement of custom exemption privileges, and subject to verification by FSIS,

Respondents shall designate one person and an alternate who shall have overall responsibility for (a) 

implementing, and maintaining the sanitation and other requirements of 9 C.F.R. Parts 303, and 416, and 

(b) compliance with the conditions of this Agreement. Respondents may name a new designee or alternate

only upon written request to, and subject to the written concmTence of, the Director, ELD. 

18. Prior to the reinstatement of custom exemption privileges, with prior concurrence and subject

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to verification by the Director, ELD, all of Respondents' management and employees shall complete 

training in sanitation and sanitary dressing procedures. 

19. Prior to the reinstatement of custom exemption privileges, and subject to verification by

FSIS, Respondents shall train all employees in all programs, procedures, and requirements of this 

Agreement. 

20. Upon reinstatement of custom exemption privileges, and subject to verification by FSIS,

Respondents shall conduct training for new employees, consistent with the requirements of paragraphs 18 

and 19. 

21. Respondents shall maintain for the duration of the Agreement records documenting the

completion of all training as described in paragraphs 18-20 and shall make those records available upon 

request to any authorized representative of the Secretary. 

Custom Exemption Requirements 

22. Respondents shall (a) ensure that product does not become adulterated during processing,

handling, storage, loading and unloading, or during transportation; (b) ensure that all slaughtered and 

processed animal carcasses and further processed meat or meat or food products are properly marked, 

labeled, and packaged, ( c) ensure that custom prepared products are plainly marked "Not for Sale", and ( d) 

maintain records as required by 9 C.F.R. Part 303. 

Poultry Exemption Requirements 

23. If conducting poultiy slaughter operations, Respondents shall ensure that the following

poultry exemption requirements in 9 C.F.R §381.10 are met: (a) Respondents may not engage in the buying 

or selling of any poultry products capable of use for human food; (b) ensure that the slaughtered poultJy is 

for the personal use of the owner of the poultry and may not be sold or donated; ( c) ensure that the shipping 

containers of custom slaughtered poultry products bear the owner's name, address, and the statement 

"Exempted-90-492"; and (d) ensure that only one poultry exemption is claimed during a calendar year. 

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24. Prior to conducting poultry slaughter operations, Respondents would be required to develop,

implement and maintain SPS, SSOP and Recordkeeping programs specifically for its poultry slaughter 

operations. 

General Provisions 

25. Respondents shall not (a) commit any felony or f

r

audulent act; (b) violate any section of the

FMIA, Poultry Products Inspection Act (PPIA), Federal, State, or local statue or regulation involving the 

preparation, sale, transportation, disn·ibution or attempted distribution of any adulterated or misbranded 

meat or poultry product; (c) willfully make or cause to be made any false entry into any accounts records 

or memoranda kept by Respondents in compliance with Federal or State statutes or regulations; fail to 

make t:rne and correct entries in such accounts, records, or memoranda; or fail to keep such accounts that 

fully disclose all transactions in Respondents' business; (d) assault, intimidate, impede, or interfere with, 

or threaten and assault, intimidate, impede or interfere with any representative or designee of the 

Secretary of Ag,iculture. 

26. Respondents shall make all records required to be maintained by the FMIA, PPIA or

regulations issued thereunder or this Agreement available to FSIS personnel for review and/or copying 

immediately upon request. 

27. Respondents shall fully and completely cooperate with any USDA or FSIS investigation,

inquiry, review or examination of Respondents' (a) facility, products, inventory or records, (b) 

compliance with the FMIA, PPIA, or the regulations issued thereunder, or (c) compliance with this 

Agreement. 

28. The Administrator, FSIS, shall have the right to summarily terminate custom exempt

privileges from Respondents upon a determination by the Director, Enforcement and Litigation Division, 

Office of Investigation, Enforcement and Audit, FSIS, or his or her designee, that Respondents have 

failed to comply with 9 C.F.R. Parts 303,381.10 and/or 416 or any requirement of this 

Agreement. It is acknowledged that Respondents retain the right to request an expedited hearing 

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pursuant to the Adopted Rules of Practice concerning any violation alleged as the basis for a 

summary termination of custom exemption privileges. 

29. The provisions ofthis Agreement shall be applicable for three (3) years, beginning on the

effective date of this Agreement. 

30. This Agreement shall be considered issued on the date that it is signed by the Administrator,

FSIS, but shall become effective on the date that an FSIS exempt establishment review documents 

findings of"acceptable" in eve1y category, on the "Exempt Establishment Review Report," FSIS Form 

5930-1, a copy of which will be provided to the Respondent. The exempt establishment review will be 

conducted only after FSIS has verified that all of the above provisions stipulating completion "prior to 

reinstatement of custom exemption privileges" have been completed. Custom exempt slaughter 

operations may resume on or after the effective date. 

31. Nothing in this Agreement shall preclude any regulatory or administrative actions or the

referral of any matter to any agency for possible criminal or civil proceedings, or preclude the 

Administrator, FSIS, from talring other appropriate administrative action under the FMIA, PPIA, or the 

regulations promulgated thereunder. 

If any provision of this Agreement is declared invalid, such declaration shall not affect the 

validity of any other provision herein. 

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Scott C. Safian, Director 

Enforcement and Litigati.o 

Food Safety and lnspectio 

U.S. Department of Agric 
,I{. 

Issued this 2.1 day of Q.zL �.,< 2017 

Paul Kiecker, Acting Administrator 

Food Safety and Inspection Service 

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