The state of the economy has a significant impact on food consumption, especially expenditures for food consumed at home versus away from home (restaurants). Expenditures on food away from home grow with improved consumer real income and outlook. Restaurant sales, in turn, have a significant impact on certain commodities including vegetable oil (deep frying), dairy (cheese consumption) and meat. For example, restaurant demand helps support the value of prime grade beef as well as lower-valued cuts such as hamburger and chicken wings, which add value to the carcass and can be a key contributing component to the commodity price.As the chart above shows, restaurant sales have expanded dramatically since last year. The National Restaurant Ass...
What You Need to Know Today: U.S. weather is getting more attention this week as conditions vary greatly across the western, central, and eastern corn belts, with the different regions battling dryness and too much rain simultaneously. The ProFarmer Crop Tour began today in Indiana and Nebrask...
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.