World Perspectives

Dairy Production Up on Fat Demand and Lower Feed Costs

In addition to stronger demand, dairy producers are enjoying good margins. This is despite milk prices being down from previous years and exports starting to tail off because of the strength of the U.S. dollar.The Dairy markets remain the most interesting markets to date. As we’ve reported previously, prices for butterfat are up based on consumer demand for full fat dairy products. Beginning this month, even McDonald’s is transitioning from margarine to butter for use with its breakfast sandwiches, which are also going on the menu full time instead of limited to morning hours. The chart below shows the component pricing for September:Although demand for butter remains strong heading into the holidays and production is still running below av...

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Illuminating the value of technical research

On behalf of a commodity producer organization, WPI evaluated the outputs from a project that featured a $5 million investment into technical research over multiple years. WPI’s team captured the results of this extensive effort and synthesized them for presentation to the organization’s governing board; among the findings uncovered and presented for the first time was the development of genomic traits proven, via rigorous testing, to provide crop yield advantages of 50 percent or more to U.S. farmers in times of drought. Capturing measurable results from long-term efforts can be challenging. Educating clients on the dynamics of success measurement when quantifiable results are not readily available requires deep client-consultant collaboration and an ability to consider both near- and long-term client aspirations with market/policy dynamics – attributes that WPI brings to every consulting engagement.

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