The U.S. and Brazil are edging toward a trade war over ethanol. Brazil has imposed a tariff-rate quota (TRQ) on imported ethanol with the full backing of the domestic industry there, and the U.S. ethanol industry is pressuring the Trump administration to remove the preferential tariff treatment for a number of Brazilian goods (since there is no longer a tariff on imported ethanol). To put the matter into perspective, it is instructive to take a look at the history of the two key trade measures. In 2010, the Brazilian government moved to temporarily eliminate its 20 percent tariff on ethanol imports and to have the market open through 2011. The purpose was twofold: 1) help the country fulfill its biofuel use goals with imports since domesti...
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...
From WPI Consulting
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.