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: Markets got a surprise with a corn yield of 181.2 bushels/acre in the October WASDE, above the average estimate of 177.6 bushels/acre and up from USDA’s September estimate of 178.5 bushels/acre. Although stronger demand is expected to absorb some of the addit...
The USDA has lowered its 2026 red meat production forecasts slightly while forecasting a slight increase in broiler production. Beef is now projected at 24.802 billion pounds, 75 million pounds less than in September. Cow slaughter is expected to be up; however, this will be offset by lower ste...
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.