The year 2022 set a record for milk prices at $25.50/cwt, beating the 2014 record of $24.00/cwt. High prices will keep cows in production – and eating feed – which is why the current USDA projection for milk production is to increase, which will ironically pressure prices. The production increase is only for 1 percent, so 2023 prices are projected to average $21.60/cwt. In context, however, the all-milk price in 2021 was $18.53/cwt. While there are expectations of marginally lower demand, based on the market in 2022 (with final data yet to be released), over time dairy demand has remained remarkable, and any reduction would come off of an impressive growing trend. According to USDA statistics, from 2017 to 2021 per capita...
What You Need to Know Today: Commodities were mostly lower across the board today after yesterday’s Federal Reserve meeting hinted at a potential interest rate hike later in 2026. The dollar index reached its highest level in over a year, and a strong dollar makes U.S. agricultural expor...
The U.S.-Mexico-Canada Agreement (USMCA) enters its mandated six-year review on 1 July. The original intent of the review is outlined in Article 34.7, which obligates members to: Provide recommendations and decide on appropriate actions. Extend the USMCA for another 16 years and meet aga...
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.