The media is abuzz over the recent uptick in American fast food chicken sandwich consumption and the resulting purported shortages. If there were a shortage, which is a bit of an overstatement, broiler meat is where you would want the problem to be. Whereas hogs require eight months to grow out and cattle two years, broilers mature in 16-24 weeks. This means that any need to ramp up production can be done in a relatively short timeframe. The U.S. produces over 9.2 billion broilers each year and thus no one is going to starve. It is true that foodservice demand is up at the same time that the supply of broilers available for slaughter is lower. However, the solution has already been put into place. Broiler margins are up 8 percent over a ye...
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.
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...