Yesterday we covered the quarterly Hogs and Pigs report from USDA, which showed the U.S. swine herd hasn’t broken out of its down cycle; the September inventory was the third consecutive year of a smaller herd compared to the prior year and the lowest since 2017. The same thing has not been happening in Brazil, however. The Instituto Brasileiro de Geographica e Estatistica (IBGE) quarterly report on meat and livestock was released yesterday showing that through Q2 of 2022, hog slaughter was at a record high of 14.07 million head. Slaughter was 107.2 percent of the same period last year, and 132 percent of 2017. The herd build-up was driven by China’s ASF situation and the global demand for more exports, but production has...
From WPI Consulting
Communicating importance of value-added products
Facing increasing pressure to quantify the value of export promotion efforts to investors, a U.S. industry organization retained WPI to develop a quantitative model that better communicated the importance of exports. The resulting model concluded that value-added meat exports contributed $0.45 cents per bushel to the price of corn, increasing support for that sector’s financial support of WPI’s client. In addition to serving the red meat industry with this type of analysis, WPI has generated similar deliverables for the U.S. soybean and poultry/egg industries.