The protests by farmers and supply chain workers have settled down but now the Argentine government is going after agribusinesses. It accuses the industry of intentionally under-producing ahead of mid-term elections later this year. The government has imposed price restrictions to try and stop food inflation running at a reported 75 percent. At the same time, it demands that grocery shelves be stocked even if companies take losses. A similar policy construct in Venezuela has caused corn and rice production to fall by 80 percent and the beef market to evaporate. Weather is the primary threat to Argentine agricultural production, but government policies could exacerbate its impact. The area planted to wheat fell and beef production mad...
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.