Deutsche Bank has issued a report highlighting the additional cost of non-tariff barriers. For example, while EU food exporters face average U.S. tariffs of 3.3 percent and American food exporters face average European tariffs of 14.6 percent, the relative cost of non-tariff barriers explodes to 56.8 percent for the U.S. and 73.3 percent for those imposed by the EU. In food, the barriers are too often the result of a focus on process hiding behind the pretense of risk management. Indeed, standards and certifications are part of the whole class of localization barriers intended to favor domestic industries over foreign ones.The defenders of disparate regulation believe they are exercising a clever shortcut to economic growth, while avoidin...
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...
Key Takeaways: Argentina is on pace for a record corn crop and record exports in the current marketing year, with abundant supplies likely to keep the country highly competitive in global export markets. Argentina’s record exportable surplus is allowing it to offer highly competitive pri...
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.