One of the larger shifts in global grain markets in recent years has been the result of the ascendency of the Black Sea region. However, there has also been the notable decline of the U.S. as a wheat exporter. The U.S. and EU have fallen from being the world’s number one and number two wheat exporters, to ranking number two and number five, respectively. By contrast, Russia has jumped from the number five position to being number one with a CAGR of 8.74 percent. Ukraine’s CAGR had been running at 6.81 percent until Russia’s invasion, which caused output and exports to fall by a third. Meanwhile, U.S. wheat yields have been stagnant. Due to the area under production declining by more than a fifth over the past decade...
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.