Populist U.S. politicians are criticizing the meat sector and blaming higher prices on agribusiness concentration. The usual target is beef where 85 percent of product is processed by the four largest firms, followed by poultry where 65 percent is similarly controlled. However, based on data just released by USDA, the wholesale – retail spread (retail price minus the wholesale price) fell most during last-half 2022 for beef (-2.3 percent). The ratio rose 20.4 percent for pork, and 33 percent for poultry. However, the chicken market has had the anomalous impact of an avian influenza outbreak coupled with rising demand. The price rose faster to temper demand against a shrinking supply. Separately, the Danish are considering a tax...
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.