World Perspectives
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How Sweet It Isn't

Global surplus sugar stocks are at their lowest since 2010/11 and futures prices are at their highest level in six years. Yet global import demand continues to expand at around 1.8 percent each year. Brazil is the world’s largest sugar exporter, and it will begin harvesting a crop that is at least 7 percent larger than last year’s drought stressed production. Exports are forecast to rise by nearly 9 percent. While Brazil has switched to producing sugar more for food than ethanol, India is the world’s second largest exporter of sugar, and it is switching its emphasis to ethanol.  Notably, the global area dedicated to sugar production has declined in recent years. Sugar beet area is down around 10 percent and land harv...

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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.

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