World Perspectives
livestock

Livestock Industry Margins

Beef packer margins improved for the fifth straight week and added about $68/head in profits to put returns to processing back in a very healthy range. Margins are now around $80/head, which is on part with the 2020-2015 average. The increase in margins comes as beef prices hover near all-time highs with strong end-user demand. Beef prices are strong too from the sharp reductions in slaughter, which has allowed packers to slow fed cattle purchases while keeping the beef pipeline tight. Feedlot profit margins were mixed ...

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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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