Livestock China’s Live Hog Producers Confront the Scissors Effect Record feed costs, historically high piglet prices, biosafety costs, and declining live hog and pork prices have created the dreaded scissors effect for many hog producers. The scissors effect, a term from corporate finance, results from a situation of rapidly rising operating costs and declining sales revenues. Through last Friday, the national average live hog price was down 5.7 percent or RMB 1.25/kg ($.19/kg) or RMB .57/lb. ($.08/lb.). This marks the lowest price level since mid-July 2019, roughly three weeks before the first African Swine Fever (ASF) cases showed up in China. The average profit per live hog also fell to its lowest average since the third week of...
What You Need to Know Today: The corn and soybean markets closed slightly higher in low-volume trade. The wheat market was mixed, with HRW continuing its downward trek on improved moisture. As expected, the bearish cattle on feed report drove down cattle prices and pulled hogs down with it. Mi...
USDA’s monthly cattle on feed report was released today. The total number of cattle on feed in feedlots with 1,000 head or more capacity amounted to 11.6 million head, 102 percent of last year. Source: USDA, WPI Placements were up, but part of that is attributable to persistent drought c...
Let’s return briefly to the fake meat hype cycle, now sitting somewhere in a dusty corner of your mind, not entirely forgotten. What happened to all those products, known as plant-based alternative proteins? They were supposed to be as good as real meat—cheaper, more environmentally...
From WPI Consulting
Infrastructure investment due diligence
On behalf of a Canadian oilseed processer WPI's team provided market analysis, econometric modeling and financial due diligence in support of a $24 million-dollar investment in a Ukrainian crush plant. Consistent with WPI's findings, local production to supply the plant and the facility's output have expanded exponentially since the investment. WPI has conducted parallel work on behalf of U.S., South American and European clients, both private and public, in the agri-food space.