Encouraging domestic production is better than imposing import barriers, although relying on the market and comparative advantage is even better. Import Substitution Declaration Donald Trump gets castigated for his “Buy American” initiative, but (as has been stated before) nearly every country exercises some form of protectionism such as import duties, country-of-origin labeling, nontariff barriers, etc. The latest is a “European Soy Declaration,” whereby Europeans seek to become self-sufficient in plant proteins. Dissatisfied with large food trade surpluses and export volume growing nearly seven times faster than imports, the goal is to stop importing from the Americas.This kind of nationalism could be replicated by other countries. One...
What You Need to Know Today: After a period of limited activity, USDA reported a sizeable 613 KMT in soybean export sales, including 330 KMT to China and 283 KMT to unknown destinations, potentially also China. The purchases represent a meaningful pickup in demand and bring China closer to ful...
Inflation is back in the driver’s seat, and agriculture is getting pulled in two directions. A stronger dollar is pressuring grains despite fresh Chinese buying, while renewed Middle East attacks lift crude oil. Higher energy prices can support commodities, but they also raise expenses an...
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.