World Perspectives
soy-oilseeds

Olive Oil Volatility

Bloomberg notes the problems confronting small scale olive oil producers in Spain and Italy. Production is volatile and has been under duress from drought and climate change. As a result, the price has risen, attracting investors who are creating larger scale farms. The article says, “The Super farms offer superior metrics.” They are planting 8 – 10 times as many trees per hectare, yielding 40 to 140 percent more oil per hectare, and using automation to harvest the olives at half the production cost. Unable to compete economically, the small producers have sought to differentiate their oil by claiming it has superior health and quality attributes. However, for large buyers in the U.S., price will continue to be an important factor. 102...

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From WPI Consulting

Communicating importance of value-added products

Facing increasing pressure to quantify the value of export promotion efforts to investors, a U.S. industry organization retained WPI to develop a quantitative model that better communicated the importance of exports. The resulting model concluded that value-added meat exports contributed $0.45 cents per bushel to the price of corn, increasing support for that sector’s financial support of WPI’s client. In addition to serving the red meat industry with this type of analysis, WPI has generated similar deliverables for the U.S. soybean and poultry/egg industries.

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