World Perspectives

China Purchasing Commitments; WTO Leverage

China Purchasing Commitments One of the Trump administration’s goals in negotiating a trade deal with China is to get Beijing’s commitment to buy more American farm products, especially soybeans as well as perhaps some sorghum and DDGS. China can only import what it needs, though, and demand for animal feed ingredients like these has fallen. The scale of the hog losses there due to African swine fever (ASF) may be indicated by a reported 20 percent decline in pig feed sales in February. China has scaled back its purchasing of pork off the domestic market as a price support tool by 90 percent due to already higher pork values. Despite reduced purchasing by consumers, the price of hogs has hit a 14-month high.   WTO Levera...

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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.

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