Through a combination of cyclical factors and disease, 2023 promises to be a year with less meat. The poultry industry has had HAPI outbreaks at 492 commercial and backyard flocks in 40 states. The cattle herd is contracting due to herd liquidation amidst drought and high feed costs. As a result, markets will be turbulent, but returns will be higher. The Biden Administration has sought to smooth the problems of the past few years by subsidizing small packer startups, and new legislation will focus on increased industry transparency, plus conducting audits and oversight. USDA Secretary Tom Vilsack said the legislative package “will support USDA’s operations and help make USDA more efficient, effective and better equipped t...
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
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.