World Perspectives
soy-oilseeds

Argentina DET Trouble

Argentina has used the differential export tax for many years to favor the export of processed soyoil and soymeal over soybeans. The policy supports an industrial base, and it allows taxation on higher value exports. However, it is not without its troubles. For one, it upsets farmers who contend there is no economic benefit that flows down to them. The government has a poor grasp on the black market and so it requires high export taxes to generate revenues for basic operations. This empowers dockworkers to demand more in wages since their work is essential to feeding government coffers. Worse, the global trade in these two products has been static at best, and in decline as a finer point. It may work for now but it is looking less sustaina...

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From WPI Consulting

Communicating importance of value-added products

Facing increasing pressure to quantify the value of export promotion efforts to investors, a U.S. industry organization retained WPI to develop a quantitative model that better communicated the importance of exports. The resulting model concluded that value-added meat exports contributed $0.45 cents per bushel to the price of corn, increasing support for that sector’s financial support of WPI’s client. In addition to serving the red meat industry with this type of analysis, WPI has generated similar deliverables for the U.S. soybean and poultry/egg industries.

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