Beef and pork futures prices have been declining due to the likely sharp drop in economic growth. On a cost per calorie basis, beef can be five times as expensive as eggs, and pork can be three times as expensive as wheat bread. On a world-wide basis, beef consumption is more influenced by GDP change than is chicken or pork. In some countries, poultry is substituted for beef when income declines, and in others the default is pork. Chinese consumers are five times more sensitive to GDP changes and their pork consumption than are Americans. During the Great Recession, global beef consumption dropped for two years in a row, pork consumption declined for one year, and the growth in poultry demand slowed. It is unclear at this juncture ho...
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.