U.S. dairy producers demanded this week that the Trump Administration ensure that Canada and Mexico adhere to their commitments for market access under the USMCA. That is a reasonable request, but the dairy market needs to be kept in perspective. U.S. dairy exports have been growing at 4.33 percent per year despite the global market expanding at just a 1.88 percent annual rate. Canadian consumption has been growing slightly faster than global demand, but Mexican consumption grows at a slightly slower rate. The real problem for U.S. dairy is over-production and a flawed incentive system. In terms of trade, the industry has been doing well; it is dairy policy that is flawed. ...
Key Market Insights The broad market is locked in on this week’s Trump-Xi meeting in Beijing, but this is no longer just a trade summit. Increasingly, the meeting is becoming tied directly to Iran, energy security, and the growing global economic fallout from disruptions through the Strai...
From WPI Consulting
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.