World Perspectives
feed-grains farm-inputs

Tough Time to Make a Profit

There’s no question that big profits were made during the boom times and balance sheets looked wonderful. The problem is that money is now going out the door at an alarming rate, and those balance sheets can change quickly in this environment.It was easy to make money in the grain business from about 2007 through 2014. Markets were always going up, and U.S. crop production was good except for the poor corn yield in 2012. We’ve often written that when prices are high, margins are also high. That was the case across the U.S. and world grain trade. Every level of agriculture from the producer through the suppliers, handlers, exporters, processors, etc. had great years. Of course big profits also allowed management to become sloppy, and budgets...

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Summary of Futures

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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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