The September producer and consumer price indices were released this week, and inflation continues to be an issue, as we discussed Monday in conjunction with the jobs report. Commodities played a big part in the producer price index (PPI) increase, specifically under the category of unprocessed goods for intermediate demand (these are the costs of commodities to processors). Ag and food items increasing include corn, hay, oilseeds, wheat, and fresh vegetables. The October WASDE likely means this category is not going to come down soon. Notably, milk and slaughter hogs declined as input costs declined in September. For processed goods for intermediate demand, or wholesale intermediate commodities for further processing,...
From WPI Consulting
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.