Hog prices were down more than 35 percent from a year ago and industry analyst Steve Meyer of Kerns & Associates says the sector is incurring the greatest economic damage he has seen in 30 years. He says, “the backup could reach as many as 2.5 million hogs by the end of the year…[and] potential 2020 revenues from hog sales have been reduced by roughly $4.7 billion.” Things are not much better on the beef side with live cattle down 14.5 percent and cattle slaughter still down from a year ago. The livestock sector is likely to see adverse impacts into 2021 but it is still curious why USDA’s announced changes in the Livestock Gross Margin (LGM) insurance program will not take place until next year. The helpful chan...
What You Need to Know Today: Russia rejected calls for a ceasefire in the Black Sea, including a proposal to halt attacks on civilian shipping that could help restore grain flows from Ukrainian ports. Tyson Foods announced plans to permanently close its Joslin, Illinois, beef processing facili...
The big news in the cattle markets yesterday was Tyson Foods’ move to close two more beef plants. One of them, the Joslin, Illinois, plant was shuttered immediately after the announcement. The other, in Eagle Mountain, Utah, is a case-ready plant that does not slaughter cattle. Tyson also...
The Bureau of Labor Statistics (BLS) released the Consumer Price Index (CPI) on Wednesday. In July, the CPI rose 0.1 percent, seasonally adjusted, and rose 3.4 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy, or the “core” infla...
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.