Livestock China’s Live Hog Producers Confront the Scissors Effect Record feed costs, historically high piglet prices, biosafety costs, and declining live hog and pork prices have created the dreaded scissors effect for many hog producers. The scissors effect, a term from corporate finance, results from a situation of rapidly rising operating costs and declining sales revenues. Through last Friday, the national average live hog price was down 5.7 percent or RMB 1.25/kg ($.19/kg) or RMB .57/lb. ($.08/lb.). This marks the lowest price level since mid-July 2019, roughly three weeks before the first African Swine Fever (ASF) cases showed up in China. The average profit per live hog also fell to its lowest average since the third week of...
From WPI Consulting
Accountability and a comprehensive approach to export programming
WPI’s team helped construct a strategic approach to develop, implement, and track promotional activities in 8 key regions across the globe for an agricultural export association. With continued progress measurement and strategic advisory services from WPI, the association has seen its ROI from investments in promotional programming increase by 44 percent over the past 5 years. Not only does this type of holistic approach to organizational strategy provide measurable results to track and analyze, it fosters top-down and bottom-up organizational accountability.