The EU seeks to have 25 percent of its production under organic rules by 2030 but some have doubts about whether the incentives will be large enough to the task. At present, Austria is the only member state to have already achieved the goal. Others like Malta and Ireland are far behind. Ordinarily, the price premium for organic is sufficient to cause a response in production. However, looking at a limited number of products does not provide clarity that price alone is sufficient. Most organically produced crops tend to be fruits or vegetables for direct consumption. Looking at three specific products, tomatoes, potatoes, and onions, reveals the wide disparity in Europe. There is only miniscule organic production in Malta and yet onions cos...
What You Need to Know Today: President Trump claimed the ceasefire between the U.S. and Iran was over, as both sides accused one another of violating the terms of the agreement. Commercial vessels are increasingly steering clear of the Strait of Hormuz as security risks escalate following Iran...
Key Takeaways: The CME Group is launching new 90 percent Lean Beef and 50 percent Lean Beef futures and options contracts in July. There are five key factors that must be present in physical markets and futures contract specifications for futures contracts to become successful. The two l...
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.