Food has historically been traded based on relative price whereby low-cost producers dominate the marketplace. Border tax advocates now want to add the cost of an externality, greenhouse gas emissions. This change could possibly turn the world on its head. Since meat is criticized for being a major culprit of climate change, it provides a good example of potentially outsized effects from giving more weight to emissions than to price. Based on FAO data on the intensity of emissions by country and meat product, rain forest advocates will be glad to know that Brazil should not be producing and exporting beef, milk (products), lamb, eggs, or pork. But strictly looking at the intensity of CO2 equivalent emissions per kilogram of meat product pr...
Weighing in on strategic realignment
WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.
What You Need to Know Today: President Trump claimed the ceasefire between the U.S. and Iran was over, as both sides accused one another of violating the terms of the agreement. Commercial vessels are increasingly steering clear of the Strait of Hormuz as security risks escalate following Iran...
Key Takeaways: The CME Group is launching new 90 percent Lean Beef and 50 percent Lean Beef futures and options contracts in July. There are five key factors that must be present in physical markets and futures contract specifications for futures contracts to become successful. The two l...