Most nations practice some form of industrial planning, but globalization is now revealing its downside implications. National subsidies have not only wrecked the fundamentals in agriculture but in many other industries as well. The head of Maersk notes how government financing and other perks have caused an unsustainable imbalance in the supply of ships to demand. Capacity continues to grow too fast, resulting in shipping rates that fail to actual cover costs. The European Commission reportedly finds U.S. demands such as equal treatment in the trade of automobiles to be unacceptable for avoiding punitive tariffs on steel and aluminum. If raising U.S. tariffs is harmful to Americans, though, then failure to reduce tariffs in Europe and els...
Infrastructure investment due diligence
On behalf of a Canadian oilseed processer WPI's team provided market analysis, econometric modeling and financial due diligence in support of a $24 million-dollar investment in a Ukrainian crush plant. Consistent with WPI's findings, local production to supply the plant and the facility's output have expanded exponentially since the investment. WPI has conducted parallel work on behalf of U.S., South American and European clients, both private and public, in the agri-food space.
What You Need to Know Today: Russia rejected calls for a ceasefire in the Black Sea, including a proposal to halt attacks on civilian shipping that could help restore grain flows from Ukrainian ports. Tyson Foods announced plans to permanently close its Joslin, Illinois, beef processing facili...
The big news in the cattle markets yesterday was Tyson Foods’ move to close two more beef plants. One of them, the Joslin, Illinois, plant was shuttered immediately after the announcement. The other, in Eagle Mountain, Utah, is a case-ready plant that does not slaughter cattle. Tyson also...
The Bureau of Labor Statistics (BLS) released the Consumer Price Index (CPI) on Wednesday. In July, the CPI rose 0.1 percent, seasonally adjusted, and rose 3.4 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy, or the “core” infla...