U.S. hog producers saw a mixed year in 2024 with early-year prices bringing poor profitability while the dramatic hog rally since the summer has lifted financial fortunes significantly. A major component of those rising prices was the unexpected surge in pork demand, which pushed the cutout to new seasonal highs this fall. Now, producers, packers, and pork buyers are wondering what 2025 will bring and how demand and prices will fare in the post-election environment. WPI has just completed an update to our long-term (one-year forward) outlook for the hog and pork markets. The major findings from this effort are that producers are likely to see strong prices for the coming year, and if crop prices do not rise significantly, strong profit...
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.
Key Market Insights The broad market is locked in on this week’s Trump-Xi meeting in Beijing, but this is no longer just a trade summit. Increasingly, the meeting is becoming tied directly to Iran, energy security, and the growing global economic fallout from disruptions through the Strai...