There is a quasi-religion that believes Big Ag is bad and small farms are better, but economics is a system and economies of scale exists as a principle regardless of human desires to the contrary. Historian Merle Fainsod noted that during WWI, large estates in Russia produced enough grain for urban markets but after the war they were divided up into small shares for most of the peasants and the result was food shortages in the cities. The landowners were called kulaks and Vladimir Lenin used them to warn that, "Small-scale production gives birth to capitalism and the bourgeoisie constantly, daily, hourly, with elemental force, and in vast proportions.” Joseph Stalin wanted an industrial scale agriculture to feed an industriali...
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.
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...