AMI submitted a letter to the Agricultural Marketing Service requesting that AMS continue publishing the National Base Lean Hog Carcass Slaughter Cost Report to prevent serious disruption in contracting for hogs and for pork products. AMI's letter expressed concerned that ceasing publication of the report as it historically has been reported will affect the Chicago Mercantile Exchange Lean Hog Index, an important mechanism regarding trade in lean value and grade and yield hogs. Affecting the index in turn could markedly disrupt important contractual arrangements that have been and will be entered into by hog producers, packers and processors. The letter asked AMS to continue publishing the report, using the same data sources, e.g., packers and geographic considerations, at least through April 2002 to allow packers and producers to engage in an orderly transition to another measure without adversely affecting existing and future contracts and relations.
AMI members can view the letter at http://www.meatinstitute.org/Template.cfm?Section=PriceReporting&NavMenuID=230&template=TaggedContentFile.cfm&NewsID=351
AMI Requests Continuation of Current Report by AMSThursday, January 18, 2001