The COVID19 outbreak is like a pinball bouncing from sector to sector of the economy. In agriculture, for example, with shutdowns in place, transportation energy use is down, which has reduced ethanol demand, which in turn has reduced the production of DDGS, which in turn is creating a new puzzle for feed formulations with high inclusion rates of DDGS, such as cattle, dairy and to a lesser extent hogs. With more corn, and less DDGS, feed formulas are going to have to adjust back to the old school days before ethanol co-products were so prevalent. Generally, that is good for soymeal. That’s an interesting twist after today’s planting reports came out above expectations on corn and below on soybean planting. Tomorrow...
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.