October 8, 2013
US pork council pushes for daily market data
Due to the US government shutdown, the National Pork Producers Council (NPPC) is contesting the USDA''s decision to furlough its Market News Service employees.
The Market News Service publishes live hog and pork pricing information. NPPC said the industry considers the Mandatory Price Reporting daily reports essential because the information serves as a reference point for buyers and sellers. But the agency stopped publishing the reports because market news was deemed "non-essential" under the USDA''s shutdown contingency plans.
"NPPC is looking at all available options, including asking the Obama administration to declare Mandatory Price Reporting "essential" since it is mandatory," said David Warner, director of communications for NPPC. "All participants in the pork industry are exploring options on market information in the absence of mandatory price reporting. The industry continues to function, but the lack of data has created confusion."
Due to the loss of government reports brought about by the shutdown, many meat and poultry firms have turned to private-data providers to fill the void but some private companies are limited in their ability to turn the shutdown to their advantage because they rely on USDA data for their databases.
Tyson Foods Inc told hog producers that it had developed an alternative formula to determine the price it pays for hogs since USDA''s market prices have been suspended due to the government shutdown on October 1.
Tyson, which uses data from the USDA''s Agricultural Marketing Service to determine the cash value for hogs, said in a letter that it would now use price data from Urner Barry - a US analytical research firm closely followed by livestock packers and traders for its meat prices and data - until USDA-AMS price data is available.
Meanwhile, Smithfield told hog producers earlier this week that it was adjusting how it was pricing hogs until the federal government reopened. Moreover, US futures operator CME Group Inc suspended its lean hog and feeder cattle price indexes, both of which are based on USDA price data to determine final livestock settlement values.