Uneven Distribution U.S. Farm Belt bankruptcies have reportedly reached a 10-year high as banks show their displeasure with producer balance sheets hammered by five years of low prices. Yet Purdue University’s monthly Ag Economy Barometer survey of farmers and their confidence rose 16 points in January to a seven-month high. The rise was likely helped by the Trump administration’s $6 billion distribution of trade war compensation checks. Unfortunately, the rest of the value chain is not receiving such subsidies. Trading houses are suffering as lower volumes of trade concentrate competition and deplete profits. As a result of the trade war and newer consumer-based demands, the entire U.S. agrifood value chain is facing major ch...
What You Need to Know Today: Russia rejected calls for a ceasefire in the Black Sea, including a proposal to halt attacks on civilian shipping that could help restore grain flows from Ukrainian ports. Tyson Foods announced plans to permanently close its Joslin, Illinois, beef processing facili...
The big news in the cattle markets yesterday was Tyson Foods’ move to close two more beef plants. One of them, the Joslin, Illinois, plant was shuttered immediately after the announcement. The other, in Eagle Mountain, Utah, is a case-ready plant that does not slaughter cattle. Tyson also...
The Bureau of Labor Statistics (BLS) released the Consumer Price Index (CPI) on Wednesday. In July, the CPI rose 0.1 percent, seasonally adjusted, and rose 3.4 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy, or the “core” infla...
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.