The other issue with LIBOR is that it fails to take into account the volume that a supplier can move. Taking the average/median of a number of suppliers that are willing to sell one chicken doesn't say much.
Both LIBOR and this chicken price are _supposed_ to be market-based; however the price negotiations are all confidential. An alternative is to mandate total visibility of all bids and offers, as is generally done in equity markets. This brings its own distortions: you have to pay people to operate the public venue; it enforces a bid-offer spread. And many people don't like regulations forcing them to do business a certain way.
What's wrong with market based prices?
The other issue with LIBOR is that it fails to take into account the volume that a supplier can move. Taking the average/median of a number of suppliers that are willing to sell one chicken doesn't say much.