U.S. dairy exporters have kept product moving despite a strong dollar and softer global demand. Prices for dairy have moved higher and are expected to stay that way. Producer fixed costs such as labor and equipment have moved higher, but feed costs are dropping. There is also the threat of HPAI. But competitors also have their cost issues, with New Zealand dairy farmers complaining that their feed costs have risen 5 percent. U.S. dairy exports have not correlated with the change in prices, or the dollar. While global imports dropped 7.8 percent from 2021, U.S. dairy exports are down 4.2 percent over that period. The drop is not impacting higher value-added products like cheese, but more basic coproducts like nonfat milk. ...
What You Need to Know Today: There has already been a strong run of flash soybean sales announcements in recent weeks, but more than 1.4 MMT reported this morning is an exceptionally large single-day total with major implications for the market. If the sales to China and unknown destinations w...
On Friday, at 6:57 AM, President Donald Trump announced, via a social media post, a 90-day window during which up to 300,000 metric tons of product for ground beef could be imported outside of tariff-rate quotas—a move aimed at bringing down costs for American consumers. This is the secon...
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.