World Perspectives
livestock

Fundamentals versus Exports

Shipping and refrigeration costs become larger factors in trade during periods of high energy prices such as the present. Suppliers with lower energy costs for food processing can arbitrage that advantage by shipping dehydrated product to countries with higher refrigeration costs. A good example is dried egg for the food processing industry. However, sometimes lower costs alone are not the determinant of trading. In the case of dried eggs, the U.S. producer average value of eggs is 46 percent less than the average value of Europe’s main exporters (Netherlands, France, Germany) of dried egg product. In addition, U.S. energy costs are lower with electricity priced at 50 percent less than three EU country average, slightly lower than Fra...

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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.

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