Dairy Crisis Fix The U.S. dairy industry has spent decades myopically focused on extracting high prices for milk out of American consumers. The Federal Milk Marketing Order system is so complex that only an elite few understand how it operates. All the while per capita milk consumption has been plummeting. Exports have been growing at nearly 4.5 percent per year despite the near lack of interest by the industry. For example, the global market demands mozzarella lower in salt, but the domestic industry insisted on making it saltier because that fit the domestic market. Now the reality of the market situation has hit like a 2x4 and a study has recommended some form of revamp. It appears the reality of the situation will finally force some ha...
What You Need to Know Today: The hot, dry weather forecast continues to drive strength in grain futures with corn and soybeans hitting another day of strong gains. Monday’s Crop Progress and Conditions data were in line with market expectations and showed relatively few concerns for the...
Yesterday we wrote about the Q1 GDP numbers and the June employment reports in an article entitled Real GDP for Q1 Relying on AI Buildout, Held Back by Consumer Spending. That article mentioned that consumer spending had become a drag on GDP. Nonetheless, real GDP in Q1 was revised upward to 2...
Key Takeaways: The Middle East and North Africa's arid climate and limited water resources have created a structural dependence on imported wheat. Government wheat tenders in major importing countries serve as important benchmarks for global trade, providing insight into exporter competitivene...
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.