Yesterday’s WASDE increased its beef production forecast slightly over January’s estimate based on Q1 slaughter, but for Q2 the slaughter rate will drop based on lower Q4 2022 placements on feed, and lighter slaughter weights. That corresponds to what WPI wrote on 17 November 2022: Placements in October are forecast to be 96 percent of last year. If these two forecasts are accurate, the 1 November inventory on feed would be the lowest in four years and placements would be the lowest of any October since 2012. That is significant since October placements are a big portion of the finished cattle leading into Q2 2023. With many lighter weight cattle pulled forward this year because of drought, it will be notable to look at the pl...
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.