During the late 1990’s and through the early 2000’s, Beijing consulted with a lot of western economists who guided the nation’s emergence as a global behemoth. However, now it is resorting to the economic alchemy that has been tried by and failed so many other governments. China’s problem of inflationary pressures and rising commodity costs are well known and researched problems. Every government is caught between farmers wanting higher prices but consumers demanding lower food costs. Beijing is attempting several flawed approaches to the problems. There is the basic jawboning effort, warning against speculation in the market while talking up farmers about the state’s need for them to plant more corn (prices a...
Infrastructure investment due diligence
On behalf of a Canadian oilseed processer WPI's team provided market analysis, econometric modeling and financial due diligence in support of a $24 million-dollar investment in a Ukrainian crush plant. Consistent with WPI's findings, local production to supply the plant and the facility's output have expanded exponentially since the investment. WPI has conducted parallel work on behalf of U.S., South American and European clients, both private and public, in the agri-food space.
Key Takeaways: China has invested heavily in the Port of Chancay to strengthen trade links between South America and Asia. The port could reduce shipping times to China by up to two weeks and improve export competitiveness. Inland transportation infrastructure remains the primary obstacle to r...