The pricing of goods in a transparent market should divide value according to the respective value-added by each segment in the supply chain. Market failures involving imbalanced distribution of returns relative to value added are typically caused by inadequate transparency, though there are other causes. In France, unhappiness with the distribution of returns has led to a negotiated outcome. Based on some data, it should be consumers in the U.S. that are dissatisfied with the market. Comparing the retail price for unprocessed fresh produce in some major capital cities, the cost of onions generally follows the overall cost of living in each respective location. However, the cost of apples in Washington, DC is 57 percent higher than i...
What You Need to Know Today: President Trump claimed the ceasefire between the U.S. and Iran was over, as both sides accused one another of violating the terms of the agreement. Commercial vessels are increasingly steering clear of the Strait of Hormuz as security risks escalate following Iran...
Key Takeaways: The CME Group is launching new 90 percent Lean Beef and 50 percent Lean Beef futures and options contracts in July. There are five key factors that must be present in physical markets and futures contract specifications for futures contracts to become successful. The two l...
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.