The Wall Street Journal noted that China’s pork production fell 55 percent last year (per Rabobank) and yet U.S. pork prices have fallen as China instead bought pork from Europe and Brazil. But global pork supplies are finite, with neither Europe nor Brazil indicating the presence of surplus carryover stocks for the past few years. The data is anomalous. Over the past two years, global pork production fell by 17.7 MMT while trade only grew by 1.9 MMT, and surplus stocks increased by 7.4 percent. China had its own trade tiff going with Canada, which saw surplus pork stocks grow by 23 percent, whereas U.S. carryover increased by 12.5 percent. So, where did the extra pork to feed China come from? China produces half the world’s po...
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.