Beef demand in East Asia is on a long-term trend upward. Fulfilling this demand has required increased imports, primarily from Australia, Brazil, and the U.S. It has also resulted in a drawdown in the regions surplus stocks. Complicating the supply situation has been drought in Australia, an atypical BSE case in Brazil, and a U.S. cattle cycle that peaked two years ago and has faced drought in the west. As would be expected in this scenario, U.S. cattle futures prices are at a two-month high and cash prices in East Asia are heading for multi-year highs. Australia retains the upper hand in the Asian market both due to proximity, and because it confronts lower trade barriers for countries within the CPTPP agreement. It may make little...
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.