The Chinese Ministry of Agriculture is projecting growth in meat output during 2016-20 and targeting “above scale” farms for this expansion. This signals an effort to reduce backyard farming and facilitate a more extensive integration of livestock production with feed mills.USDA’s Economic Research Service (ERS) recently published a paper on the growth of China’s feed industry and the impact that could have on corn and soybean markets (Development of China’s Feed Industry and Demand for Imported Commodities by Fred Gale, November 2015). It charts the development timeline for the nation’s feed industry over the last 40 years from 1974-75 when the first mills were built in China through today. The paper also provides background on the importa...
What You Need to Know Today: Agricultural commodities were mostly lower on the day, with red-hot soyoil a notable exception. Export sales were a bit underwhelming, particularly for corn with export sales down 52 percent week-over-week. The weakness in ag markets tracked crude oil weakness wit...
With the war in Iran affecting fuel and fertilizer prices, higher tariffs, weak commodity prices, ag labor constraints, and other factors, farm bankruptcies are now at a 6-year high, a signal of growing stress. During the month of April, 62 Chapter 12 bankruptcies were filed, which is a 1...
Food Inflation The Open Markets Institute, which is notably funded by several “anonymous” donors and liberal foundations, obtained a guest editorial in the New York Times in which they blame agribusiness concentration for higher grocery prices. This is their schtick and it is politi...
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.