World Perspectives

New Ag Approach Needed

Exports have accounted for 25 percent of U.S. farm income, but that share will continue to fall. While China has taken about 25 percent of U.S. agricultural exports, the trade war is about to intensify. This will mean both further near-term losses but also a long-term erosion. Sales to Europe have been declining, and Japan will buy more from Australia and New Zealand due to the Trans-Pacific Partnership (TPP). The OECD issued a silly report that American consumers will be worst hit due to the trade conflict with China. Duh. That is the whole point of it – the U.S. has lower importer barriers and consumes more from China. The real question is, what should be the revised direction of U.S. industries such as agriculture? Technology has...

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farm-inputs

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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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