While much of the focus on Europe relates to political instability in the EU, and threats from Russia, there are ample economic issues that also need to be addressed. This is true in both industrial production and agricultural output. European farms continue to lag their American counterparts in total factor productivity due to less R&D spending, slower technology uptake, smaller farm sizes, and regulatory burdens. The latter, including the Green Deal and Farm to Fork prompted a political revolt by farmers that is still reverberating across the Continent. But European industrial production is similarly burdened. McKinsey studied EU investment and productivity and found large deficiencies. U.S. investment in intellectual property...
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.
The Trump Administration is planning a suspension of tariff rate quotas (TRQs) on beef from all exporters for 200 days as a means to address high beef prices in the U.S. U.S. cattle and beef prices have increased based on exceptionally strong consumer demand, the smallest U.S. cattle herd in 75...