Yesterday, WPI reported on the forecast for dairy for 2022., noting that this month’s WASDE raised the all-milk price forecast for 2022 to a record high at $25.80/cwt, based on the increase in all dairy product prices except whey. However, we also noted that feed prices have increased more than milk prices, squeezing producer margins. Given the COVID era’s impact on supply chain, labor and other processing costs, processor margin are also squeezed. In 2021, USDA commissioned a study on the production costs for processing dairy production, conducted at the University of Wisconsin. The paper, which was completed in December of 2021, was released in February of this year. The estimated cost of production increased in 3...
What You Need to Know Today: There has already been a strong run of flash soybean sales announcements in recent weeks, but more than 1.4 MMT reported this morning is an exceptionally large single-day total with major implications for the market. If the sales to China and unknown destinations w...
On Friday, at 6:57 AM, President Donald Trump announced, via a social media post, a 90-day window during which up to 300,000 metric tons of product for ground beef could be imported outside of tariff-rate quotas—a move aimed at bringing down costs for American consumers. This is the secon...
From WPI Consulting
Infrastructure investment due diligence
On behalf of a Canadian oilseed processer WPI's team provided market analysis, econometric modeling and financial due diligence in support of a $24 million-dollar investment in a Ukrainian crush plant. Consistent with WPI's findings, local production to supply the plant and the facility's output have expanded exponentially since the investment. WPI has conducted parallel work on behalf of U.S., South American and European clients, both private and public, in the agri-food space.