The price of olive oil has hit over $6,000/MT on a combination of increased demand and a production shortfall in Spain caused by drought, or what some claim is more permanent adverse consequence of climate change. Europe has historically dominated the world’s production of olive oil, producing up to 70 percent of the supply. That share dropped off more recently as production elsewhere in the world hit a new high at the same time European production has failed to repeat the peak it achieved in 2019. U.S. production mostly occurs in California, which has its own version of drought problems. It may require breeding a more drought tolerant olive tree to restore a supply/demand balance. ...
From WPI Consulting
Communicating importance of value-added products
Facing increasing pressure to quantify the value of export promotion efforts to investors, a U.S. industry organization retained WPI to develop a quantitative model that better communicated the importance of exports. The resulting model concluded that value-added meat exports contributed $0.45 cents per bushel to the price of corn, increasing support for that sector’s financial support of WPI’s client. In addition to serving the red meat industry with this type of analysis, WPI has generated similar deliverables for the U.S. soybean and poultry/egg industries.