The extremely dry conditions in Argentina illustrate the low level of irrigation in many countries around the world. In terms of number of irrigated hectares, China is number one, followed by India and then the U.S. However, on a percent share of total agricultural land, Japan is by far number one, followed by India. Given the rising risk of drought due to climate change, having the insurance of irrigation would seem wise. However, investing in irrigation is not a straightforward calculation. First, it is relatively expensive and so amortizing the investment requires good financial flows. It requires a source of water for when Mother Nature is stingy, such as a large ground table, reservoirs, or long-distance transport. The crop outp...
Beef packer margins deteriorated to -$218/head last week, down $20 from the prior week as a softer Choice cutout combined with slightly lower fed cattle prices. The cutout slipped to $391/cwt while fed cattle prices eased to $256/cwt, leaving packer profits under pressure. Margins remain deeply...
What You Need to Know Today: The U.S. and Iran agreed to a peace deal on Monday with the deal expected to be signed Friday in Switzerland. The memorandum signed is explicit that Iran will allow 60 days of toll-free transit for all traffic through the Strait of Hormuz, and President Trump annou...
The U.S. and Iran announced a framework peace deal. Crude oil futures dropped to $83.08, the lowest since early March. The breakthrough comes as President Trump said that if Iran failed to reach a deal, he would order renewed military attacks. An LNG tanker chartered by India’s Petronet c...
From WPI Consulting
Infrastructure investment due diligence
On behalf of a Canadian oilseed processer WPI's team provided market analysis, econometric modeling and financial due diligence in support of a $24 million-dollar investment in a Ukrainian crush plant. Consistent with WPI's findings, local production to supply the plant and the facility's output have expanded exponentially since the investment. WPI has conducted parallel work on behalf of U.S., South American and European clients, both private and public, in the agri-food space.