World Perspectives
wheat

Russia's Wheat Export Tax

Russia has exploded as a wheat exporter, tripling its sales in just a decade. By contrast, domestic consumption grew some but has been relatively stagnant the past few years. That has because the population has grown at just 0.15 percent per year and is forecast to fall going forward. Sensitive to public resistance to food price increases, the government has been using an export tax to meter how much of the nation’s wheat gets exported. Russia’s wheat stocks-to-use ratio is higher than it has been for six of the past ten years. As in other countries, the contributions to food price inflation are more diverse than just the bulk commodity value. If wheat is on average about 12 percent of the value of a loaf of bread, halving the...

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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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