World Perspectives

Equilibration of Food Prices

International trade is supposed to equilibrate prices as the supply of goods or services flow to where they deemed more precious. Hog prices in Europe are currently 57 percent higher than in the U.S., which some believe creates an opportunity for transatlantic pork sales. However, open markets do not automatically overcome price differences caused by transportation, consumer preference, quality, exchange rates and other factors. The EU is a single market, but not all members of the trading bloc belong to the eurozone. Eastern European countries complained about poorer quality food, but their consumers were not always willing or able to pay as much as those in richer parts of Europe. The EU’s geographic preferences reinforce different...

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From WPI Consulting

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.

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