A meme circulating on the internet, likely started by R-CALF, goes like this: Ok, a 1300-pound animal is bought for $0.95 per pound by the packers and 40 percent of the animal is waste, which leaves 780 pounds of meat. Now take that 780 pounds multiplied by the retail price of $7.79 per pound and the total value is $6,076.20! After deducting the original cost of the animal at $1,235.00, it becomes clear that the big four meat packers plus the retailers are making a whopping $4,841.20, which is four times what the rancher made for producing all that meat. Both the rancher and the consumer are getting screwed. This of course totally ignores the labor- and capital-intensive contributions of the packer and retailer in converting the animal in...
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
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.