Just as hopes were high for resuming ethanol exports to China under the Phase One deal to be signed this week, China is suspending its national E10 ethanol blending plan which was to be in effect in 2020. While the E10 goal was never realistic – USDA’s FAS post in China estimated mid-way through last year the blend rate in 2019 would be about 2.5 percent - export prospects are now uncertain as China backs off its general aspirational goals on promoting ethanol use. At least for 2020, China’s ethanol policy will remain a patchwork of local and provincial programs. Domestic production is capped by a number of factors in addition to available feedstock, including a lack of funding for continued subsidies to build...
WPI recently completed an expansion of our methodology for estimating and forecasting U.S. and global soybean crushing margins. The new approach incorporates the energy market’s expanding influence on the oilseed sector and the structural changes in global biofuel demand. This report is i...
An amendment to the U.S. House farm bill, aiming to remove the Save Our Bacon Act language in Section 12006 that would have stripped language to prohibit California’s Proposition 12, Massachusetts’ Question 3, and up to 500 state agricultural laws across the country, was blocked by...
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.