At the end of the year, thoughts are turning to the future – not just 2022, but the longer term as well. USDA released its preliminary long-term outlook in November, and the final will be out in February at the Outlook conference. The European Commission has already released their long-term outlook. An interesting comparison is the forecast economic growth – a key factor for red meat exports. Overall, USDA’s baseline forecast presents a bullish outlook. The European Commission’s EU Agricultural Outlook for 2021-2031 is slightly less robust. The USDA baseline outlook has a 2022-2031 global GDP growth rate of 3.1 percent. The EU outlook has the average annual growth rate through 2031 at 2.7 percent. Both, however, are...
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.