World Perspectives
biofuel softs

Can’t Beat Beet Molasses

Molasses left over from the processing of beets for sugar is typically the poor cousin to the molasses that results from making sugar from sugarcane. Cane-based molasses has superior nutritional qualities and has historically earned a premium. USDA pricing from more than a decade ago shows a 50 percent premium for that variety over its beet-derived cousin. Currently, molasses made from beets is carrying a 10.7 percent price advantage, largely due to its demand as an ethanol feedstock under the EU’s Renewable Energy Directive (RED). Cane molasses is preferred in animal feed rations and is thus imported by Europe for its livestock sector. Additionally, aversion to the “empty” calories in sugar and its higher price is causin...

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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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