1.   Hog prices fell after IBP Inc., the largest U.S. pork processor, said it will cut back pork-processing operations in Iowa.

2.   IBP Inc. and Smithfood Foods Corp., among the largest pork processors, also have curtailed hog slaughter, citing difficult market conditions.

3.   Pork processors have suffered from a shortage of slaughter-weight hogs.

4.   Profits of pork processors, like IBP Inc. or Smithfield Companies Inc., are tied to the profits of hog farmers.

5.   The counting errors led to unnecessary price volatility and confusion within the industry, the traders and buyers said, and distorted the profits of pork processors.

6.   The Norfolk, Virginia, pork processor reported lower earnings for the last two quarters as rising prices squeezed margins for fresh pork.

7.   Traders say the new contract will become a more useful way for pork processors and hog farmers to hedge prices.

8.   Opponents say the checkoff has done little to stimulate pork consumption and mostly benefits pork processors and large corporate farms.

9.   The pig farmers and pork processors hope the free meal win back consumers, some of whom are switching to chicken and fish.