The U.S. dairy industry has suffered supply/demand imbalances for decades, but the problem continues to be generated on the supply side of the equation. While the population has been growing at a little over one-half percent per year, cheese consumption has been expanding at a 2 percent annual rate. Even more striking has been the demand for butter. The rebound for butter began with the government campaign against trans fats for health reasons. In 2013, the U.S. FDA declared that trans fats, which were used in making margarine, were no longer generally regarded as safe. Since that time, demand for butter instead of margarine has been growing at an annual rate of 2.25 percent. ...
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.