A drop in U.S. beef exports is corresponding with the cattle cycle fall in production. U.S. beef production is falling by a half million tons, with domestic consumption losing about half that amount, and reduced exports offsetting about a third of the lower output. The export drop looks more significant because it follows a record for beef exports last year. An impressive change in the world beef market is the increase in exports being executed by Brazil. Brazilian beef exports are averaging a compound average growth rate of over 5 percent. More significantly, a major market for Brazil is China, where beef import demand has been growing 25 percent per year. Notably, China’s imports will not be impacted by concerns over carbon o...
From WPI Consulting
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.