New Zealand famously is a country with more sheep than people, but the competition is slipping in favor of humans. The problem is the economics of wool, which is no longer an economically supportive coproduct. Wool is less needed in a warming world with many man-made alternative fibers, and landowners make more money converting grasslands to carbon credit paying forests. Wool production in New Zealand and in the rest of the world is in decline. While sheep meat output in New Zealand declines along with that of wool, global sheep meat has been expanding. However, it is falling behind the expansion rate of competing animal proteins such as poultry meat. Lamb consumption has always had a smaller group of fans, based on historic ge...
The Trump Administration is planning a suspension of tariff rate quotas (TRQs) on beef from all exporters for 200 days as a means to address high beef prices in the U.S. U.S. cattle and beef prices have increased based on exceptionally strong consumer demand, the smallest U.S. cattle herd in 75...
Beef packer margins deteriorated to -$208/head last week, down $24 from the prior week as higher fed cattle prices continued to outpace wholesale beef values. The Choice cutout held near $389/cwt, but fed cattle prices climbed to nearly $259/cwt, extending the seasonal squeeze on packer spreads...
What You Need to Know Today: Energy markets are sharply higher after President Trump rejected a weekend Iranian counter proposal that did not include limits on the country’s nuclear program. The ceasefire looks increasingly fragile, with energy markets unlikely to return to normal soon...
From WPI Consulting
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.