The U.S. beef cutout is still at elevated levels and cattle prices are in the doldrums as capacity and labor issues create a kink in the value chain. Bottom line, cattle supplies exceed the current ability of U.S. packers to process enough to meet domestic and export beef demand. Things are getting tight all over. Beef prices in Argentina are up more than 48 percent Q1 2021 over Q1 2020, so Argentina has put in a beef export ban. The ban has been met with a cattle producer strike withholding cattle from the market. The ban is for 30 days, but the situation is tenuous, as the mid-term elections are coming. Because of COVID, the elections have been postponed; the primary elections were moved from 9 August to 12 September, and the...
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.